REGISTERED NUMBER: 00425267 (England and Wales) |
GROUP STRATEGIC REPORT, DIRECTORS' REPORT AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
W.E.BLACK LIMITED |
REGISTERED NUMBER: 00425267 (England and Wales) |
GROUP STRATEGIC REPORT, DIRECTORS' REPORT AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
W.E.BLACK LIMITED |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Directors' Report | 5 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 18 |
W.E.BLACK LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & Statutory Auditors |
Unit 201, Second Floor |
Metroline House |
118-122 College Road |
Harrow |
Middlesex |
HA1 1BQ |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The directors present their strategic report of the company and the group for the year ended 31 December 2022. |
REVIEW OF BUSINESS |
Turnover for the year ended 31 December 2022, was £28,068,402 (2021 - £57,869,393) with profit after taxation of £12,267,149 (2021 - £13,611,200). |
The group has continued to perform well in 2022, in what is viewed as a difficult market, and despite the prediction in last year, the level of turnover has decreased. Profitability has also decreased in the present market. The group has been in profit for the last 14 years. The directors are satisfied with the performance of the group, and the directors expect to deliver a profit in the current financial year. |
Financial performance |
Financial performance for the year has been analysed as follows |
2022 | 2021 | Change | Change |
£'000 | £'000 | £'000 | % |
Turnover | 28,068 | 57,869 | (29,801) | (51.5) |
Gross profit | 5,988 | 9,379 | (3,391) | (36.2) |
Profit before tax | 15,193 | 16,976 | (1,783) | (10.5) |
Turnover has decreased to £28.07 million from £57.87 million. During the year 77 residential property units and 8 development projects were sold, compared to 45 residential property units and 9 development projects sold in 2021. |
Gross profits have decreased to £5.99 million from £9.38 million in 2021. The gross profit margin has increased to 21.3% (16.2% in 2021). |
Profit before tax decreased to £15.19 million from £16.98 million in 2021. The main reason for this was due to the increase in the expenditure. |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the nature of the group's strategy are subject to a number of risks. |
The directors have set out below the principal risks facing the business. |
The directors are of the opinion that a thorough risk management process is adopted which involves the formal review of all the risks identified below. Where possible, processes are in place to monitor and mitigate such risks. |
Economic downturn |
The success of the business is reliant on consumer spending and mortgage lending. An economic downturn, resulting in reduction of consumer spending power and difficulties in obtaining mortgage finance will have a direct impact on the income achieved by the group. |
In response to this risk, senior management aim to keep abreast of economic conditions. Marketing and pricing strategies are modified to reflect any change in market conditions. |
Financial risk management objectives and policies |
The group uses various financial instruments including, cash, equity investments, joint venture arrangements, and various items, such as trade creditors and trade debtors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the group's operations. |
The existence of these financial instruments exposes the group to a number of financial risks, which are described in more detail below. |
The main risks arising from the group's financial instruments are market risk, cash flow and credit risk. The directors review and agree policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous periods. |
Market risk |
Market risk encompasses two types of risk, being fair value interest rate risk and price risk. The group's policies for managing fair value interest rate risk are considered along with those for managing cash flow interest rate risk and are set out in the subsection entitled "interest rate risk" below. |
Liquidity risk |
The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. |
Interest rate risk |
The group finances its operations through a mixture of retained profits and standard trade finance. The group's exposure in interest rate fluctuations on its reserves is managed by the use of both fixed and floating rate facilities. |
Creditor payment policy |
The terms of sales collections and supplier payments reflect local commercial practice. The group has policies to ensure that suppliers are paid on time. In particular, the group seeks: |
- To set terms of payment with suppliers when agreeing the terms of the transaction, |
- To ensure that suppliers are made aware of the agreed terms of payment, |
- To abide by the terms of payment. |
SECTION 172(1) STATEMENT |
The directors must act in the way they consider, in good faith, would most likely to promote the success of the group for the benefit of its members as a whole, and in doing so have regard to: |
- long term consequences of any decisions |
- the interest of the group's employees |
- the need to foster the group's business relationships with suppliers, customers and others |
- the impact of the group's operations on the community and the environment |
- the desirability of the group maintaining a reputation for high standards of business conduct, and the need to act fairly as between members of the group. |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
KEY PERFORMANCE INDICATORS |
The directors have monitored the progress of the overall group strategy by reference to certain financial and non-financial key performance indicators. The indicators are listed below in the order of their importance. |
2022 | 2021 | Method of calculation |
Net profit margin before tax (%) |
54.1 |
29.3 |
Ratio of profit on ordinary activities before tax to total sales expressed as a percentage |
Gross profit margin (%) |
21.3 |
16.2 |
Ratio of gross profit to group sales expressed as a percentage |
Turnover (£million) | 28 | 58 | Turnover achieved in the year |
(Decline) / Growth in turnover (%) |
(52) |
40 |
Year-on-year turnover growth expressed as a percentage |
Number of residential units sold |
77 |
45 |
Number of private units with legal completion in the year |
The directors continuously review all performance indicators, to ensure the most relevant key performance indicators are being monitored and focused upon. |
Future developments for the business and outlook |
The directors will continue to seek profitable business opportunities. At the start of 2022, the housing market had slowed within the group's operational area, which is predominantly Buckinghamshire, Hertfordshire and Middlesex. This slow down has continued, but a stable market is the most important factor for the property sector and the group. |
At the start of 2023, sales have continued to grow. |
The directors expect the residential property market in 2023 to be similar to 2022. However, the directors believe the group is well placed with its sites in good locations to deliver another profitable year. With cash reserves W.E.Black Limited is ready to secure development opportunities as they arise. |
ON BEHALF OF THE BOARD: |
15 October 2023 |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2022. |
DIVIDENDS |
During the year dividends of £2,971,980 (2021 - £2,634,255) were paid. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31 December 2022 was £2,971,980 (2021 - £2,634,255). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
DONATIONS AND EXPENDITURE |
During the year the group made charitable donations of £21,854 (2021 - £22,879). |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Directors' 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, EV Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
W.E.BLACK LIMITED |
Opinion |
We have audited the financial statements of W.E.Black Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2022 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Directors' Report, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the 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 the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
W.E.BLACK LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
W.E.BLACK LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
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: |
- | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | we identified the laws and regulations applicable to the group and the parent company through discussions with directors and other management, and from our commercial knowledge and experience of the industry in which the group and the parent company operates; |
- | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group and the parent company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the group and the parent company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and |
- | understanding the design of the group and the parent company's remuneration policies. |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC, relevant regulators and the group and the parent company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
W.E.BLACK LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants & Statutory Auditors |
Unit 201, Second Floor |
Metroline House |
118-122 College Road |
Harrow |
Middlesex |
HA1 1BQ |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
REVENUE | 3 | 28,068,402 | 57,869,393 |
Cost of sales | (22,080,615 | ) | (48,490,700 | ) |
GROSS PROFIT | 5,987,787 | 9,378,693 |
Administrative expenses | (1,523,826 | ) | (1,815,884 | ) |
4,463,961 | 7,562,809 |
Other operating income | 6,186,694 | 5,936,714 |
OPERATING PROFIT | 5 | 10,650,655 | 13,499,523 |
Interest receivable and similar income | 4,545,585 | 3,499,119 |
15,196,240 | 16,998,642 |
Interest payable and similar expenses | 6 | (2,865 | ) | (22,856 | ) |
PROFIT BEFORE TAXATION | 15,193,375 | 16,975,786 |
Tax on profit | 7 | (2,926,226 | ) | (3,364,586 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 12,267,149 | 13,611,200 |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 12,267,149 | 13,611,200 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
12,267,149 |
13,611,200 |
Total comprehensive income attributable to: |
Owners of the parent | 12,267,149 | 13,611,200 |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 1,544,987 | 1,735,135 |
Property, plant and equipment | 11 | 63,467 | 76,136 |
Investments | 12 | 1,525,000 | 1,525,000 |
Investment property | 13 | 18,490,000 | 18,490,000 |
21,623,454 | 21,826,271 |
CURRENT ASSETS |
Inventories | 14 | 98,116,418 | 101,397,582 |
Debtors | 15 | 92,309,143 | 76,009,153 |
Cash at bank and in hand | 103,836,702 | 106,294,833 |
294,262,263 | 283,701,568 |
CREDITORS |
Amounts falling due within one year | 16 | (33,664,561 | ) | (32,602,886 | ) |
NET CURRENT ASSETS | 260,597,702 | 251,098,682 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
282,221,156 |
272,924,953 |
PROVISIONS FOR LIABILITIES | 17 | (66,704 | ) | (65,670 | ) |
NET ASSETS | 282,154,452 | 272,859,283 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 27,018 | 27,018 |
Capital redemption reserve | 19 | 182 | 182 |
Retained earnings | 19 | 282,127,252 | 272,832,083 |
SHAREHOLDERS' FUNDS | 282,154,452 | 272,859,283 |
The financial statements were approved by the Board of Directors and authorised for issue on 15 October 2023 and were signed on its behalf by: |
E J S Gadsden - Director |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
COMPANY BALANCE SHEET |
31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Property, plant and equipment | 11 |
Investments | 12 |
Investment property | 13 |
CURRENT ASSETS |
Inventories | 14 |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Capital redemption reserve | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 7,063,334 | 8,822,386 |
The financial statements were approved by the Board of Directors and authorised for issue on |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2021 | 27,018 | 261,855,138 | 182 | 261,882,338 |
Changes in equity |
Dividends | - | (2,634,255 | ) | - | (2,634,255 | ) |
Total comprehensive income | - | 13,611,200 | - | 13,611,200 |
Balance at 31 December 2021 | 27,018 | 272,832,083 | 182 | 272,859,283 |
Changes in equity |
Dividends | - | (2,971,980 | ) | - | (2,971,980 | ) |
Total comprehensive income | - | 12,267,149 | - | 12,267,149 |
Balance at 31 December 2022 | 27,018 | 282,127,252 | 182 | 282,154,452 |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 148,795 | 41,482,548 |
Interest paid | (2,865 | ) | (22,856 | ) |
Tax paid | (4,173,808 | ) | (6,874,653 | ) |
Net cash from operating activities | (4,027,878 | ) | 34,585,039 |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | (1,205,520 | ) |
Purchase of tangible fixed assets | (13,758 | ) | (39,690 | ) |
Purchase of fixed asset investments | - | (1,500,000 | ) |
Purchase of investment property | - | (14,370,000 | ) |
Sale of tangible fixed assets | 9,900 | 11,180 |
Interest received | 4,545,585 | 3,499,119 |
Net cash from investing activities | 4,541,727 | (13,604,911 | ) |
Cash flows from financing activities |
Equity dividends paid | (2,971,980 | ) | (2,634,255 | ) |
Net cash from financing activities | (2,971,980 | ) | (2,634,255 | ) |
(Decrease)/increase in cash and cash equivalents | (2,458,131 | ) | 18,345,873 |
Cash and cash equivalents at beginning of year |
2 |
106,294,833 |
87,948,960 |
Cash and cash equivalents at end of year | 2 | 103,836,702 | 106,294,833 |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
Profit before taxation | 15,193,375 | 16,975,786 |
Depreciation charges | 212,138 | 710,894 |
Profit on disposal of fixed assets | (5,464 | ) | (3,367 | ) |
Finance costs | 2,865 | 22,856 |
Finance income | (4,545,585 | ) | (3,499,119 | ) |
10,857,329 | 14,207,050 |
Decrease in inventories | 3,281,164 | 14,893,429 |
(Increase)/decrease in trade and other debtors | (15,363,090 | ) | 8,584,899 |
Increase in trade and other creditors | 1,373,392 | 3,797,170 |
Cash generated from operations | 148,795 | 41,482,548 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 103,836,702 | 106,294,833 |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 106,294,833 | 87,948,960 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 106,294,833 | (2,458,131 | ) | 103,836,702 |
106,294,833 | (2,458,131 | ) | 103,836,702 |
Total | 106,294,833 | (2,458,131 | ) | 103,836,702 |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | STATUTORY INFORMATION |
W.E.Black Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The financial statements have been prepared on a going concern basis as the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least twelve months from the date of approval of these financial statements. |
Turnover |
Turnover represents the sale of land and buildings and rental income excluding value added tax. |
Turnover is attributable to one continuing activity, which arose wholly in the United Kingdom. Turnover from the sale of land and buildings is recognised at the completion date when the title passes to the buyer. |
Rental income is recognised on a receivable basis based on the period of occupancy by the tenants. |
Goodwill |
A further business acquisition was made in 2015, and is being amortised evenly over its estimated useful life of ten years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stocks and work-in-progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is calculated on the basis of direct cost based on a normal level of activity. Provision is made for foreseeable losses where appropriate. |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Debtors |
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment. |
Cash and cash equivalents |
Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
Creditors |
Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Investments in subsidiary undertakings are stated at cost, less any provision for permanent diminution in value. |
Other fixed asset investments are held at the lower of cost and net realisable value, less any provision for permanent diminution in value. |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
3. | REVENUE |
The revenue and profit before taxation are attributable to the one principal activity of the group. |
An analysis of revenue by class of business is given below: |
2022 | 2021 |
£ | £ |
Sale of land and buildings | 27,008,352 | 57,459,599 |
Rental income | 1,060,050 | 409,794 |
28,068,402 | 57,869,393 |
An analysis of revenue by geographical market is given below: |
2022 | 2021 |
£ | £ |
United Kingdom | 28,068,402 | 57,869,393 |
28,068,402 | 57,869,393 |
4. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries | 1,329,017 | 1,407,434 |
Social security costs | 78,382 | 57,679 |
Other pension costs | 22,739 | 28,849 |
1,430,138 | 1,493,962 |
The average number of employees during the year was as follows: |
2022 | 2021 |
Administration | 6 | 5 |
Development | 11 | 13 |
2022 | 2021 |
£ | £ |
Directors' remuneration | 190,565 | 230,560 |
Directors' pension contributions to money purchase schemes | 17,599 | 15,927 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Hire of plant and machinery | 16,539 | 14,003 |
Depreciation - owned assets | 21,991 | 26,812 |
Profit on disposal of fixed assets | (5,464 | ) | (3,367 | ) |
Goodwill amortisation | 190,148 | 684,083 |
Auditors' remuneration | 43,200 | 38,500 |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Other interest payable | 2,865 | 2,172 |
Interest payable | - | 20,684 |
2,865 | 22,856 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax | 2,928,630 | 3,355,236 |
UK corporation tax - prior |
year adjustment | (2,649 | ) | 2,443 |
Total current tax | 2,925,981 | 3,357,679 |
Deferred tax | 245 | 6,907 |
Tax on profit | 2,926,226 | 3,364,586 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Ordinary shares of £1 each |
Interim | 2,971,980 | 2,634,255 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 | 7,967,863 |
AMORTISATION |
At 1 January 2022 | 6,232,728 |
Amortisation for year | 190,148 |
At 31 December 2022 | 6,422,876 |
NET BOOK VALUE |
At 31 December 2022 | 1,544,987 |
At 31 December 2021 | 1,735,135 |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
11. | PROPERTY, PLANT AND EQUIPMENT |
Group |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2022 | 42,179 | 8,592 | 164,705 | 9,183 | 224,659 |
Additions | 5,690 | 1,712 | - | 6,356 | 13,758 |
Disposals | (3,359 | ) | - | (31,273 | ) | - | (34,632 | ) |
At 31 December 2022 | 44,510 | 10,304 | 133,432 | 15,539 | 203,785 |
DEPRECIATION |
At 1 January 2022 | 27,258 | 5,375 | 109,652 | 6,238 | 148,523 |
Charge for year | 4,000 | 1,403 | 12,808 | 3,780 | 21,991 |
Eliminated on disposal | (3,010 | ) | - | (27,186 | ) | - | (30,196 | ) |
At 31 December 2022 | 28,248 | 6,778 | 95,274 | 10,018 | 140,318 |
NET BOOK VALUE |
At 31 December 2022 | 16,262 | 3,526 | 38,158 | 5,521 | 63,467 |
At 31 December 2021 | 14,921 | 3,217 | 55,053 | 2,945 | 76,136 |
Company |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
12. | FIXED ASSET INVESTMENTS |
Group |
Unlisted |
investments |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 | 1,525,000 |
NET BOOK VALUE |
At 31 December 2022 | 1,525,000 |
At 31 December 2021 | 1,525,000 |
Company |
Shares in |
group | Unlisted |
undertakings | investments | Totals |
£ | £ | £ |
COST |
At 1 January 2022 |
and 31 December 2022 | 6,381,199 |
NET BOOK VALUE |
At 31 December 2022 | 6,381,199 |
At 31 December 2021 | 6,381,199 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Hawridge Place, Hawridge, Chesham, Buckinghamshire, HP5 2ZD |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Formerly South Lodge Developments Limited. |
Registered office: Hawridge Place, Hawridge, Chesham, Buckinghamshire, HP5 2UG |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: Hawridge Place, Hawridge, Chesham, Buckinghamshire, HP5 2UG |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Loss for the year | ( |
) | ( |
) |
Registered office: Hawridge Place, Hawridge, Chesham, Buckinghamshire, HP5 2UG |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Hawridge Place, Hawridge, Chesham, Buckinghamshire, HP5 2ZD |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Unit 201, Second Floor, Metroline House, 118-122 College Road, Harrow, HA1 1BQ |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
(Loss)/profit for the year | ( |
) |
Registered office: Hawridge Place, Hawridge, Chesham, Buckinghamshire, HP5 2UG |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves | ( |
) |
Profit/(loss) for the year | ( |
) |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: Unit 201, Second Floor, Metroline House, 118-122 College Road, Harrow, HA1 1BQ |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Unit 201, Second Floor, Metroline House, 118-122 College Road, Harrow, Middlesex, HA1 1BQ |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Cantay Estates Limited acquired 100% shareholding in Raypat Limited on 28 January 2021. |
13. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 January 2022 |
and 31 December 2022 | 18,490,000 |
NET BOOK VALUE |
At 31 December 2022 | 18,490,000 |
At 31 December 2021 | 18,490,000 |
14. | STOCKS |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Raw materials | 6,975 | 6,975 |
Work-in-progress | 28,961,617 | 26,869,380 |
Finished goods | 69,147,826 | 74,521,227 |
98,116,418 | 101,397,582 |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Trade debtors | 941,693 | 3,307,631 |
Amounts owed by group undertakings | - | - |
Amounts owed by connected companies | 1,981,326 | - | - | - |
Other debtors | 87,937,718 | 72,125,053 |
Tax | 936,110 | - |
VAT | 158,304 | - |
Prepayments and accrued income | 353,992 | 576,469 |
92,309,143 | 76,009,153 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Trade creditors | 2,459,566 | 3,685,704 |
Amounts owed to connected companies | 28,699,368 | 25,407,619 | - | - |
Tax | 1,037,044 | 1,348,761 |
Social security and other taxes | 15,484 | 103,312 |
VAT | - | 65,035 | - | 128,132 |
Other creditors | 268,230 | 1,135,704 |
Accruals and deferred income | 1,184,869 | 856,751 |
33,664,561 | 32,602,886 |
17. | PROVISIONS FOR LIABILITIES |
Group |
2022 | 2021 |
£ | £ |
Deferred tax |
Accelerated capital allowances | (4,708 | ) | (5,742 | ) |
Deferred tax | 71,412 | 71,412 |
66,704 | 65,670 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2022 | 65,670 |
Provided during year | 1,034 |
Other movements |
Balance at 31 December 2022 | 66,704 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1 | 27,018 | 27,018 |
W.E.BLACK LIMITED (REGISTERED NUMBER: 00425267) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
19. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2022 | 272,832,083 | 182 | 272,832,265 |
Profit for the year | 12,267,149 | 12,267,149 |
Dividends | (2,971,980 | ) | (2,971,980 | ) |
At 31 December 2022 | 282,127,252 | 182 | 282,127,434 |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2022 | 241,318,636 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2022 | 245,409,990 |
20. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
Other debtors include directors' overdrawn loan balances of £4,582,310 (2021 - £7,294,109). The advances carry an interest rate @ 2.5% per annum. |
21. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
22. | ULTIMATE CONTROLLING PARTY |
The controlling party is E J S Gadsden. |
E J S Gadsden is a director and majority shareholder. |