Company registration number 13223820 (England and Wales)
THE DARENT WAX GROUP LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
THE DARENT WAX GROUP LIMITED
COMPANY INFORMATION
Directors
Mr L Finlayson-Green
Mr RE Parker
Mr TA Ward
Mr AC Ward
Company number
13223820
Registered office
1 The Mills
Station Road
South Darenth
Kent
DA4 9BD
Auditor
Lindeyer Francis Ferguson Limited
North House
198 High Street
Tonbridge
Kent
TN9 1BE
Business address
1 The Mills
Station Road
South Darenth
Kent
DA4 9BD
THE DARENT WAX GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Company statement of cash flows
13
Notes to the financial statements
14 - 32
THE DARENT WAX GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
Fair review of the business
The directors are pleased with progress made with development in The Darent Wax Group Limited and its group, a wholly owned manufacturing business.
In spite of continued challenges within global markets the directors are pleased to report on a satisfactory year.
Export markets continue to be vital for our products and growth of the business, now contributing more than 50% of our sales turnover. It is anticipated that a significant proportion of future growth will be delivered through our strategy to service new/developing overseas territories and the development of new product lines.
Principal risks and uncertainties
The Directors have assessed the main risks facing the Company and the Group as being from increased costs of raw materials, energy costs and competition from other manufacturers with similar operations.
The Directors believe that the quality of products and standard of technical customer service will help mitigate these risks and anticipate seeing continued growth and satisfactory trading results in the coming year.
Devlopment and performance
Deep water sales opportunities in our beauty portfolio of wax products continue to increase, resulting in ongoing investments being made to increase production capacity, improve productivity, and reduce lead times.
Key performance indicators
The group has ISO 9001/2015 accreditation which demands the use of KPI’s, both financial and nonfinancial, and these are all used in the management of the company. Profit and loss figures, gross margins, net profitability, and production metrics etc are all in line with where we could reasonably expect them to be given the continued challenging landscape. All indications suggest that demand for our products and services into 23/24 and beyond remains high.
Mr L Finlayson-Green
Director
29 September 2023
THE DARENT WAX GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the Company and Group was that of a holding company for its subsidiary companies and the manufacture of speciality wax compounds.
Results and dividends
The results for the period are set out on page 7.
The directors are pleased to report a successful year with operating profits of £1,711,254 (2022: £1,730,278) on sales of £13,567,279 (2022: £12,187,061). A satisfactory result given the background turbulence in global confidence and related cost and supply chain challenges resulting from the Russian invasion of Ukraine in February 2022.
Ordinary dividends were paid amounting to £309,780 (2022: £125,519). The directors do not recommend payment of a further dividend
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr L Finlayson-Green
Mr RE Parker
Mr TA Ward
Mr AC Ward
Financial instruments
Liquidity risk
The group carefully manages it cash and borrowing requirement in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.
Foreign currency risk
The group’s principal foreign currency exposures arise from trading with overseas companies. An appreciable portion of the groups sales and procurement activities are made in US Dollars and Euros. Having identified the potential for currency de-valuation risk a dynamic strategy has been developed to mitigate against currency fluctuations by proactively seeking to balance foreign currency sales with forward procurement of materials thus limiting the necessity for foreign currency exchange.
Credit risk
Investment of cash surpluses and borrowings are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Future developments
The global market for our products continues to expand and change. Consequently the group is constantly seeking new opportunities and investing in new equipment to increase production capacity, improve productivity and reduce lead times. Some £228,000 of new equipment was acquired, including a new production line. This came onstream in April 2023.
THE DARENT WAX GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
Subsequent to the year end the board has introduced new management structures and disciplines with a view to improving internal efficiencies and communication.
Auditor
The auditor, Lindeyer Francis Ferguson Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
Mr L Finlayson-Green
Director
29 September 2023
THE DARENT WAX GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE DARENT WAX GROUP LIMITED
- 4 -
Opinion
We have audited the financial statements of The Darent Wax Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2023 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
• the information given in the strategic report and the directors' truereport for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
THE DARENT WAX GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE DARENT WAX GROUP LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit, in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We designed procedures in line with our responsibilities, outlined below, 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.
We obtained an understanding of the group and the industry it operates within, considering the extent to which non-compliance might materially affect the financial statements. The principal risks of non-compliance with laws and regulations were deemed to relate to the Companies Act 2006 and FRS 102. We also considered those laws and regulations that do not have a direct impact on the preparation of the financial statements such as general data protection regulations, health and safety regulations and employment law.
Having reviewed the laws and regulations applicable to both the company and group, we designed and performed audit procedures to obtain sufficient appropriate audit evidence. Specifically, we:
Select a team with sector experience;
Obtained and reviewed internal policies and procedures and external guidance
Reviewed the minutes of meetings held in the year by management for any evidence of non compliance with laws or regulations;
Held discussions with management involved in the compliance functions, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud
Reviewed the completeness and accuracy of associated disclosures made in the financial statements.
THE DARENT WAX GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE DARENT WAX GROUP LIMITED
- 6 -
In relation to the group companies, we evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the key risks were related to the understatement of revenue, and management bias in accounting estimates and areas of the financial statements requiring judgement. Such areas include, but are not limited to, the depreciation of tangible fixed assets, the carrying value of inventory and the bad debt provision for trade debtors. Audit procedures performed by us included:
Assessing the systems and controls in place, and whether any weaknesses were identified which could suggest or allow fraud;
Challenging assumptions made by management in arriving at accounting estimates and judgements;
Considering the appropriateness of the depreciation rates used and ensuring that these had been applied consistently for all assets within each class;
Reviewing the net realisable value of inventory and whether any provision is required for obsolete stock;
Designing and performing audit procedures to obtain sufficient appropriate audit evidence in relation to the completeness and cut-off of income; and
Review of post period-end receipts to ensure the recoverability of trade debtors.
In relation to the parent company, the additional risks identified were in relation to the correct treatment of deferred consideration and the value of the investment in subsidiaries. Procedures performed in relation to these areas included:
Reviewing the treatment of deferred consideration and ensuring that it is held at the correct value in the period-end accounts; and
Reviewing the performance of the subsidiaries for any indications of impairment.
The audit has been planned and performed in such a way as to best identify risks of material misstatement, however, because of the inherent limitations of audit procedures there is a risk that we will not detect all irregularities, including those that may lead to material misstatements in the financial statements. For example, whilst we have properly planned and performed our audit in accordance with auditing standards, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely audit procedures are to identify it. Also, the risk of not detecting an irregularity due to fraud is higher than the risk of not detecting one resulting from error, due to probable deliberate concealment, override of controls, collusion or misrepresentations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Jonathan Healey FCA (Senior Statutory Auditor)
For and on behalf of Lindeyer Francis Ferguson Limited
13 October 2023
Chartered Accountants
Statutory Auditor
North House
198 High Street
Tonbridge
Kent
TN9 1BE
THE DARENT WAX GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
Year
Period
ended
ended
31 March
31 March
2023
2022
as restated
Notes
£
£
Turnover
3
13,567,279
12,187,061
Cost of sales
(10,072,845)
(8,716,779)
Gross profit
3,494,434
3,470,282
Administrative expenses
(1,783,180)
(1,788,798)
Other operating income
48,794
Operating profit
4
1,711,254
1,730,278
Interest payable and similar expenses
8
(159,227)
(133,785)
Profit before taxation
1,552,027
1,596,493
Tax on profit
9
(351,675)
(263,431)
Profit for the financial year
1,200,352
1,333,062
Profit for the financial year is all attributable to the owners of the parent company.
THE DARENT WAX GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
738,443
831,720
Tangible assets
11
3,606,954
3,379,862
Investments
12
4
4,345,397
4,211,586
Current assets
Stocks
14
2,296,246
2,203,405
Debtors
15
2,515,323
2,371,594
Cash at bank and in hand
354,083
212,308
5,165,652
4,787,307
Creditors: amounts falling due within one year
16
(2,376,400)
(2,399,649)
Net current assets
2,789,252
2,387,658
Total assets less current liabilities
7,134,649
6,599,244
Creditors: amounts falling due after more than one year
17
(2,886,542)
(3,360,464)
Provisions for liabilities
Deferred tax liability
20
268,088
149,333
(268,088)
(149,333)
Net assets
3,980,019
3,089,447
Capital and reserves
Called up share capital
23
473
473
Share premium account
1,881,431
1,881,431
Profit and loss reserves
2,098,115
1,207,543
Total equity
3,980,019
3,089,447
The financial statements were approved by the board of directors and authorised for issue on 29 September 2023 and are signed on its behalf by:
Mr L Finlayson-Green
Director
Company registration number 13223820 (England and Wales)
THE DARENT WAX GROUP LIMITED
COMPANY BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
12
4,181,818
4,181,818
Current assets
Debtors
15
369,177
59,866
Creditors: amounts falling due within one year
16
(1,928,406)
(1,279,780)
Net current liabilities
(1,559,229)
(1,219,914)
Total assets less current liabilities
2,622,589
2,961,904
Creditors: amounts falling due after more than one year
17
(720,000)
(1,080,000)
Net assets
1,902,589
1,881,904
Capital and reserves
Called up share capital
23
473
473
Share premium account
1,881,431
1,881,431
Profit and loss reserves
20,685
-
Total equity
1,902,589
1,881,904
As permitted by s408 Companies Act 2006, the Company has not presented its own profit and loss account and related notes. The company’s profit for the year was £330,465 (2022 - £125,519 profit).
The financial statements were approved by the board of directors and authorised for issue on 29 September 2023 and are signed on its behalf by:
29 September 2023
Mr L Finlayson-Green
Director
Company registration number 13223820 (England and Wales)
THE DARENT WAX GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Period ended 31 March 2022:
Profit and total comprehensive income
-
-
1,333,062
1,333,062
Issue of share capital
23
473
1,881,431
-
1,881,904
Dividends
-
-
(125,519)
(125,519)
Balance at 31 March 2022
473
1,881,431
1,207,543
3,089,447
Period ended 31 March 2023:
Profit and total comprehensive income
-
-
1,200,352
1,200,352
Dividends
-
-
(309,780)
(309,780)
Balance at 31 March 2023
473
1,881,431
2,098,115
3,980,019
THE DARENT WAX GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Period ended 31 March 2022:
Profit and total comprehensive income for the period
-
-
125,519
125,519
Issue of share capital
23
473
1,881,431
-
1,881,904
Dividends
-
-
(125,519)
(125,519)
Balance at 31 March 2022
473
1,881,431
1,881,904
Period ended 31 March 2023:
Profit and total comprehensive income
-
-
330,465
330,465
Dividends
-
-
(309,780)
(309,780)
Balance at 31 March 2023
473
1,881,431
20,685
1,902,589
THE DARENT WAX GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
1,455,658
2,398,085
Interest paid
(159,227)
(133,785)
Income taxes paid
(379,333)
(175,698)
Net cash inflow from operating activities
917,098
2,088,602
Investing activities
Purchase of tangible fixed assets
(101,193)
(71,712)
Proceeds from disposal of tangible fixed assets
6,000
-
Purchase of subsidiaries, net of cash acquired
-
(1,345,350)
Net cash used in investing activities
(95,193)
(1,417,062)
Financing activities
Proceeds from issue of shares
-
86
Repayment of borrowings
-
(203,320)
Repayment of bank loans
(263,024)
(103,284)
Payment of finance leases obligations
(107,322)
(27,195)
Dividends paid to equity shareholders
(309,780)
(125,519)
Net cash used in financing activities
(680,126)
(459,232)
Net increase in cash and cash equivalents
141,779
212,308
Cash and cash equivalents at beginning of year
212,308
Cash and cash equivalents at end of year
354,087
212,308
THE DARENT WAX GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
31
(31,477)
2,273,493
Interest paid
(48,743)
(33,359)
Net cash (outflow)/inflow from operating activities
(80,220)
2,240,134
Investing activities
Proceeds from disposal of subsidiaries
(4,181,818)
Dividends received
390,000
185,299
Net cash generated from/(used in) investing activities
390,000
(3,996,519)
Financing activities
Proceeds from issue of shares
-
1,881,904
Dividends paid to equity shareholders
(309,780)
(125,519)
Net cash (used in)/generated from financing activities
(309,780)
1,756,385
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
THE DARENT WAX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
1
Accounting policies
Company information
The Darent Wax Group Limited (“the Company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1 The Mills, Station Road, South Darenth, Kent, DA4 9BD.
The group consists of The Darent Wax Group Limited and all of its subsidiaries.
1.1
Reporting period
In the prior year, a 13 month reporting period was used in order to align the year-end of the Company with that of its subsidiaries. The current period is one year long, so comparative amounts presented in the financial statements are not entirely comparable.
1.2
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.3
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.4
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company, The Darent Wax Group Limited, together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
THE DARENT WAX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
1.5
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the truegroup has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.6
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services, rental services and service charges provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.7
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.8
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2-4% straight line
Leasehold improvements
4% on cost
Plant and equipment
10% and 25% reducing balance, depending upon the estimated useful life of the asset
Fixtures and fittings
10% and 25% reducing balance, depending upon the estimated useful life of the asset
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
THE DARENT WAX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.9
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.10
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
An impairment loss is recognised immediately in profit or loss.
1.11
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Stocks are valued in the accounts on an average cost basis.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.12
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.
1.13
Financial instruments
The company and group only have financial instruments which are classified as basic financial instruments.
Short-term debtors and creditors are measured at the settlement value. Any losses from impairment are recognised in profit and loss.
Bank loans are initially recorded at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method.
1.14
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
THE DARENT WAX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.15
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
1.16
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
THE DARENT WAX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
1.19
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.20
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Valuation of stock
The salaries of production staff are included within stock to accurately reflect all elements of production costs incurred. In order to calculate this, management increase the cost of finished goods by a flat 20%, to recognise the cost of direct labour invested into finished goods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Depreciation
Depreciation is calculated to write off the cost or valuation of assets over their estimated useful economic lives. See note 1.8 for specific rates.
Goodwill
Amortisation is calculated to write off the goodwill over its estimated useful economic life of 10 years. See note 1.7 for more details on the amortisation policy.
THE DARENT WAX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Wax manufacture
13,565,105
12,125,731
Rental income
2,174
61,330
13,567,279
12,187,061
2023
2022
£
£
Turnover analysed by geographical market
UK
6,000,831
5,261,484
Europe
2,825,300
2,591,997
Rest of World
4,741,148
4,333,580
13,567,279
12,187,061
2023
2022
£
£
Other revenue
Grants received
-
41,682
4
Operating profit
2023
2022
£
£
Operating profit for the period is stated after charging/(crediting):
Exchange (gains)/losses
(29,775)
2,931
Government grants
-
(41,682)
Depreciation of owned tangible fixed assets
137,588
143,495
Depreciation of tangible fixed assets held under finance leases
43,474
20,064
Loss on disposal of tangible fixed assets
73
17,271
Amortisation of intangible assets
93,277
101,050
Operating lease charges
102,893
115,698
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
3,500
2,000
Audit of the financial statements of the company's subsidiaries
9,450
11,000
12,950
13,000
THE DARENT WAX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
5
Auditor's remuneration
(Continued)
- 20 -
For other services
All other non-audit services
8,000
6,950
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Production staff
53
42
-
-
Other staff
23
32
4
4
Total
76
74
4
4
Their aggregate remuneration comprised:
Group
2023
2022
£
£
Wages and salaries
1,836,537
1,684,631
Social security costs
166,578
137,794
Pension costs
90,020
95,012
2,093,135
1,917,437
The Company paid no wages in the period to 31 March 2023, or the period to 31 March 2022.
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
212,747
226,369
Company pension contributions to defined contribution schemes
10,139
11,399
Benefits in kind
12,084
17,307
234,970
255,075
THE DARENT WAX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
7
Directors' remuneration
(Continued)
- 21 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
68,325
72,090
Company pension contributions to defined contribution schemes
5,739
6,078
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022: 2).
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
99,796
97,016
Other interest on financial liabilities
48,743
33,359
148,539
130,375
Other finance costs:
Interest on finance leases and hire purchase contracts
10,688
3,410
Total finance costs
159,227
133,785
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
274,349
343,504
Adjustments in respect of prior periods
(41,429)
(76,854)
Total current tax
232,920
266,650
Deferred tax
Origination and reversal of timing differences
118,755
(3,219)
Total tax charge
351,675
263,431
THE DARENT WAX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Taxation
(Continued)
- 22 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
1,552,027
1,596,493
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
294,885
303,334
Tax effect of expenses that are not deductible in determining taxable profit
8,271
9,536
Permanent capital allowances in excess of depreciation
(57,536)
8,957
Amortisation on assets not qualifying for tax allowances
17,723
19,199
Adjustment in respect of prior periods
(41,735)
(77,988)
Consolidation adjustments
(3,773)
Group losses unrelieved
11,312
7,385
Deferred tax movement
118,755
(3,219)
Taxation charge
351,675
263,431
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
932,770
Amortisation and impairment
At 1 April 2022
101,050
Amortisation charged for the year
93,277
At 31 March 2023
194,327
Carrying amount
At 31 March 2023
738,443
At 31 March 2022
831,720
The Company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
THE DARENT WAX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2022
2,665,025
273,115
1,819,601
116,354
105,631
4,979,725
Additions
227,988
3,997
177,865
409,850
Disposals
(23,441)
(23,441)
At 31 March 2023
2,665,025
273,115
2,047,589
120,350
260,055
5,366,134
Depreciation and impairment
At 1 April 2022
229,215
31,412
1,185,684
93,073
60,480
1,599,864
Depreciation charged in the year
53,383
10,925
79,957
6,315
30,482
181,062
Eliminated in respect of disposals
(21,746)
(21,746)
At 31 March 2023
282,598
42,337
1,265,641
99,388
69,216
1,759,180
Carrying amount
At 31 March 2023
2,382,427
230,778
781,948
20,962
190,839
3,606,954
At 31 March 2022
2,435,810
241,703
633,917
23,281
45,151
3,379,862
The Company had no tangible fixed assets at 31 March 2023 or 31 March 2022.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
2023
2022
£
£
Plant and equipment
136,470
29,930
Motor vehicles
167,971
43,342
304,441
73,272
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
4,181,818
4,181,818
Unlisted investments
4
4
4,181,818
4,181,818
THE DARENT WAX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
12
Fixed asset investments
(Continued)
- 24 -
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 April 2022 and 31 March 2023
4
Impairment
At 1 April 2022
-
Impairment losses
4
At 31 March 2023
4
Carrying amount
At 31 March 2023
At 31 March 2022
4
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
4,181,818
Carrying amount
At 31 March 2023
4,181,818
At 31 March 2022
4,181,818
13
Subsidiaries
Details of the company's subsidiaries at 31 March 2023 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Darent Wax Holdings Limited
England and Wales
Rental of premises
Ordinary
100
The Darent Wax Company Limited
England and Wales
Manufacture of wax
Ordinary
100
THE DARENT WAX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
14
Stocks
Group
2023
2022
£
£
Raw materials and consumables
1,384,219
1,402,523
Work in progress
316,669
330,851
Finished goods and goods for resale
478,496
470,031
Consignment stock
116,862
-
2,296,246
2,203,405
The Company held no stock at 31 March 2023 or 31 March 2022.
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,153,458
1,761,256
Corporation tax recoverable
41,735
77,988
Amounts owed by group undertakings
-
-
369,091
-
Other debtors
12,798
123,002
86
59,866
Prepayments and accrued income
307,332
409,348
2,515,323
2,371,594
369,177
59,866
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
18
266,624
263,952
Obligations under finance leases
19
65,687
16,127
Trade creditors
1,319,824
1,324,606
Amounts owed to group undertakings
1,459,406
915,030
Corporation tax payable
90,582
273,248
Other taxation and social security
60,997
40,077
-
-
Deferred income
21
16,131
Other creditors
472,211
409,887
460,000
360,000
Accruals and deferred income
84,344
71,752
9,000
4,750
2,376,400
2,399,649
1,928,406
1,279,780
THE DARENT WAX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
18
2,004,064
2,269,760
Obligations under finance leases
19
162,478
10,704
Other creditors
720,000
1,080,000
720,000
1,080,000
2,886,542
3,360,464
720,000
1,080,000
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
1,326,060
-
-
THE DARENT WAX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
18
Loans and overdrafts
Group
2023
2022
£
£
Bank loans
2,270,688
2,533,712
2,270,688
2,533,712
Payable within one year
266,624
263,952
Payable after one year
2,004,064
2,269,760
The long-term loans are secured by fixed charges over the assets of the group.
There are two loans in the group. One loan with a balance of £532,000 at the year-end bears interest at a rate of 2.99% and will be fully repaid by May 2026 as a result of monthly repayments. The other loan bears interest at a rate of 2.5% above the Bank of England base rate and will be fully repaid by December 2027 as a result of monthly repayments.
The Company had no loans or overdrafts at 31 March 2023, or 31 March 2022.
19
Finance lease obligations
Group
2023
2022
£
£
Future minimum lease payments due under finance leases:
Within one year
65,687
16,127
In two to five years
162,478
10,704
228,165
26,831
228,165
26,831
Finance lease payments represent rentals payable by the Company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. Finance leases are secured against the assets to which they relate.
The Company had no finance leases at 31 March 2023, or 31 March 2022.
THE DARENT WAX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
268,088
149,333
The Company has no deferred tax assets or liabilities.
Group
2023
Movements in the year:
£
Liability at 1 April 2022
149,333
Charge to profit or loss
118,755
Liability at 31 March 2023
268,088
The Company had no deferred tax liability at 31 March 2023 or 31 March 2022.
21
Deferred income
Group
2023
2022
£
£
Other deferred income
16,131
-
16,131
-
The Company had no deferred income at 31 March 2023 or 31 March 2022.
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
90,020
95,012
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
THE DARENT WAX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
473
473
473
473
24
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
2023
2022
£
£
Within one year
71,246
94,994
Between two and five years
-
71,246
71,246
166,240
The Company had no operating lease obligations at 31 March 2022 or 31 March 2023.
25
Financial commitments, guarantees and contingent liabilities
There are fixed and floating cross-guarantees across the group in respect of a loan held by Darent Wax Holdings Limited. These charges are dated 16 May 2017 and 31 May 2017. The amount owed by the group under this guarantee at 31 March 2023 amounted to £1,738,688 (2022: £1,833,712).
There are a fixed and floating cross-guarantees across the group in respect of loans held by The Darent Wax Company Limited. These charge are dated 5 February 2014 and 9 May 2017. The amount owed by the group under this guarantee at 31 March 2023 amounted to £532,000 (2022: £700,000).
In addition, there is also a fixed and floating charge dated 19 April 2021 over the assets of the The Darent Wax Group Limited in respect of an amount due to a director of The Darent Wax Group Limited. The amount owed by the group in respect of this security at 31 March 2023 is £1,080,000 (2022: £1,440,000) and this balance is within other creditors.
THE DARENT WAX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
26
Related party transactions
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Other related parties
12,513
8,386
Other information
At the year-end, £2,918 (2022: £2,918) was owed to The Darent Wax Company Limited by Huckle Limited, an entity controlled by a close family member of key management personnel.
During the year, payments were made in support of Darent Wax SAS, an entity controlled by a member of key management personnel. Payments of £4,127 were made to the entity during the year (2022: £3,123). At the year end, £9,595 was owed to The Darent Wax Company Limited (2022: £5,468).
27
Events after the reporting date
Post year-end, there are plans to transfer the trade and assets of a subsidiary, The Darent Wax Holdings Limited, to The Darent Wax Group Limited and close The Darent Wax Holdings Limited.
28
Controlling party
There is no ultimate controlling party as the directors own an equal shareholding of the company.
29
Prior period adjustment
Whilst preparing the financial statements an adjustment was made to better classify costs between cost of sales and administrative expenses. As a result, prior year cost of sales have risen by £288,998, whilst administrative expenses have reduced by £288,998, as shown in the statement of comprehensive income.
This adjustment does not effect equity or the balance sheet.
THE DARENT WAX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
30
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,200,352
1,333,062
Adjustments for:
Taxation charged
351,675
263,431
Finance costs
159,227
133,785
(Gain)/loss on disposal of tangible fixed assets
(4,305)
17,271
Amortisation and impairment of intangible assets
93,281
101,050
Depreciation and impairment of tangible fixed assets
181,066
163,559
Movements in working capital:
Increase in stocks
(92,841)
(2,203,405)
Stock transferred on acquisition
-
1,564,714
Increase in debtors
(179,982)
(2,293,606)
Debtors transferred on acquisition
-
1,041,576
(Decrease)/increase in creditors
(268,946)
2,926,322
Creditors transferred on acquisition
-
(649,674)
Increase in deferred income
16,131
-
Cash generated from operations
1,455,658
2,398,085
31
Cash (absorbed by)/generated from operations - company
2023
2022
£
£
Profit for the year after tax
330,465
125,519
Adjustments for:
Finance costs
48,743
33,359
Investment income
(390,000)
(185,299)
Movements in working capital:
Increase in debtors
(309,311)
(59,866)
Increase in creditors
288,626
2,359,780
Cash (absorbed by)/generated from operations
(31,477)
2,273,493
THE DARENT WAX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 32 -
32
Analysis of changes in net debt - group
1 April 2022
Cash flows
New finance leases
31 March 2023
£
£
£
£
Cash at bank and in hand
212,308
141,775
-
354,083
Borrowings excluding overdrafts
(2,533,712)
263,024
-
(2,270,688)
Obligations under finance leases
(26,831)
107,322
(308,656)
(228,165)
(2,348,235)
512,121
(308,656)
(2,144,770)
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.200Mr L Finlayson-GreenMr RE ParkerMr TA WardMr AC Ward120035213223820bus:Consolidated2022-04-012023-03-31132238202022-04-012023-03-3113223820bus:Director12022-04-012023-03-3113223820bus:Director22022-04-012023-03-3113223820bus:Director32022-04-012023-03-3113223820bus:Director42022-04-012023-03-3113223820bus:RegisteredOffice2022-04-012023-03-31132238202021-02-242022-03-3113223820bus:Consolidated2021-02-242022-03-3113223820core:ProductService1bus:Consolidated2022-04-012023-03-3113223820core:ProductService1bus:Consolidated2021-02-242022-03-3113223820countries:UnitedKingdombus:Consolidated2022-04-012023-03-3113223820dpl:Item1countries:UnitedKingdombus:Consolidated2021-02-242022-03-3113223820countries:Europebus:Consolidated2022-04-012023-03-3113223820countries:Europebus:Consolidated2021-02-242022-03-3113223820countries:OtherCountriesRegionsbus:Consolidated2022-04-012023-03-3113223820countries:OtherCountriesRegionsbus:Consolidated2021-02-242022-03-3113223820bus:Consolidated2023-03-31132238202023-03-3113223820core:Goodwillbus:Consolidated2023-03-3113223820core:Goodwillbus:Consolidated2022-03-3113223820bus:Consolidated2022-03-3113223820core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-03-3113223820core:LeaseholdImprovementsbus:Consolidated2023-03-3113223820core:PlantMachinerybus:Consolidated2023-03-3113223820core:FurnitureFittingsbus:Consolidated2023-03-3113223820core:MotorVehiclesbus:Consolidated2023-03-3113223820core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-03-3113223820core:LeaseholdImprovementsbus:Consolidated2022-03-3113223820core:PlantMachinerybus:Consolidated2022-03-3113223820core:FurnitureFittingsbus:Consolidated2022-03-3113223820core:MotorVehiclesbus:Consolidated2022-03-31132238202022-03-3113223820core:CurrentFinancialInstrumentsbus:Consolidated2023-03-3113223820core:CurrentFinancialInstrumentsbus:Consolidated2022-03-3113223820core:BetweenTwoFiveYearsbus:Consolidated2023-03-3113223820core:BetweenTwoFiveYearsbus:Consolidated2022-03-3113223820core:WithinOneYearbus:Consolidated2023-03-3113223820core:WithinOneYearbus:Consolidated2022-03-3113223820core:BetweenTwoFiveYears2023-03-3113223820core:BetweenTwoFiveYears2022-03-3113223820core:CurrentFinancialInstruments2023-03-3113223820core:CurrentFinancialInstruments2022-03-3113223820core:ShareCapitalbus:Consolidated2023-03-3113223820core:ShareCapitalbus:Consolidated2022-03-3113223820core:SharePremiumbus:Consolidated2023-03-3113223820core:SharePremiumbus:Consolidated2022-03-3113223820core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-03-3113223820core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-03-3113223820core:ShareCapital2023-03-3113223820core:ShareCapital2022-03-3113223820core:SharePremium2023-03-3113223820core:SharePremium2022-03-3113223820core:RetainedEarningsAccumulatedLosses2023-03-3113223820core:RetainedEarningsAccumulatedLosses2022-03-3113223820core:ShareCapitalbus:Consolidated2021-02-242022-03-3113223820core:SharePremiumbus:Consolidated2021-02-242022-03-3113223820core:ShareCapital2021-02-242022-03-3113223820core:SharePremium2021-02-242022-03-3113223820bus:Consolidated2022-03-3113223820bus:Consolidated2021-02-23132238202021-02-2313223820core:Goodwill2022-04-012023-03-3113223820core:LandBuildingscore:OwnedOrFreeholdAssets2022-04-012023-03-3113223820core:LeaseholdImprovements2022-04-012023-03-3113223820core:PlantMachinery2022-04-012023-03-3113223820core:FurnitureFittings2022-04-012023-03-3113223820core:MotorVehicles2022-04-012023-03-3113223820core:OwnedAssetsbus:Consolidated2022-04-012023-03-3113223820core:OwnedAssetsbus:Consolidated2021-02-242022-03-3113223820core:LeasedAssetsbus:Consolidated2022-04-012023-03-3113223820core:LeasedAssetsbus:Consolidated2021-02-242022-03-3113223820core:ContinuingOperations2022-04-012023-03-3113223820core:ContinuingOperations2021-02-242022-03-3113223820bus:Director2bus:Consolidated2022-04-012023-03-3113223820bus:Director2bus:Consolidated2021-02-242022-03-3113223820core:UKTaxbus:Consolidated2022-04-012023-03-3113223820core:UKTaxbus:Consolidated2021-02-242022-03-3113223820bus:Consolidated12022-04-012023-03-3113223820bus:Consolidated12021-02-242022-03-3113223820bus:Consolidated22022-04-012023-03-3113223820bus:Consolidated22021-02-242022-03-3113223820bus:Consolidated32022-04-012023-03-3113223820bus:Consolidated32021-02-242022-03-3113223820bus:Consolidated42022-04-012023-03-3113223820bus:Consolidated42021-02-242022-03-3113223820core:Goodwillbus:Consolidated2022-03-3113223820core:Goodwillbus:Consolidated2022-04-012023-03-3113223820core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-03-3113223820core:LeaseholdImprovementsbus:Consolidated2022-03-3113223820core:PlantMachinerybus:Consolidated2022-03-3113223820core:FurnitureFittingsbus:Consolidated2022-03-3113223820core:MotorVehiclesbus:Consolidated2022-03-3113223820core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-04-012023-03-3113223820core:LeaseholdImprovementsbus:Consolidated2022-04-012023-03-3113223820core:PlantMachinerybus:Consolidated2022-04-012023-03-3113223820core:FurnitureFittingsbus:Consolidated2022-04-012023-03-3113223820core:MotorVehiclesbus:Consolidated2022-04-012023-03-3113223820core:UnlistedNon-exchangeTradedbus:Consolidated2023-03-3113223820core:UnlistedNon-exchangeTradedbus:Consolidated2022-03-3113223820core:UnlistedNon-exchangeTraded2023-03-3113223820core:UnlistedNon-exchangeTraded2022-03-3113223820core:Subsidiary12022-04-012023-03-3113223820core:Subsidiary22022-04-012023-03-3113223820core:Subsidiary122022-04-012023-03-3113223820core:Subsidiary232022-04-012023-03-3113223820core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3113223820core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3113223820core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-03-3113223820core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-03-3113223820core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3113223820core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3113223820core:Non-currentFinancialInstrumentsbus:Consolidated2023-03-3113223820core:Non-currentFinancialInstrumentsbus:Consolidated2022-03-3113223820core:Non-currentFinancialInstruments2023-03-3113223820core:Non-currentFinancialInstruments2022-03-3113223820core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-03-3113223820core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-03-3113223820core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated12023-03-3113223820core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated12022-03-3113223820core:Non-currentFinancialInstrumentscore:AfterOneYear22023-03-3113223820core:Non-currentFinancialInstrumentscore:AfterOneYear22022-03-3113223820dpl:Item1bus:Consolidated2022-04-012023-03-3113223820dpl:Item1bus:Consolidated2021-02-242022-03-3113223820core:EntityControlledByKeyManagementPersonnel1bus:Consolidated2023-03-3113223820core:EntityControlledByKeyManagementPersonnel1bus:Consolidated2022-03-3113223820core:EntityControlledByKeyManagementPersonnel2bus:Consolidated2023-03-3113223820core:EntityControlledByKeyManagementPersonnel22022-03-3113223820core:EntityControlledByKeyManagementPersonnel2bus:Consolidated2022-04-012023-03-3113223820core:EntityControlledByKeyManagementPersonnel2bus:Consolidated2021-02-242022-03-3113223820bus:PrivateLimitedCompanyLtd2022-04-012023-03-3113223820bus:FRS1022022-04-012023-03-3113223820bus:Audited2022-04-012023-03-3113223820bus:ConsolidatedGroupCompanyAccounts2022-04-012023-03-3113223820bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP