Company registration number 02457125 (England and Wales)
WESSEX GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
WESSEX GROUP LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 35
WESSEX GROUP LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr S Morgan
Mr A Morgan
Ms. D L Harry
Mr. R M Hall
Secretary
Mr S Morgan
Company number
02457125
Registered office
Wessex House
Wincombe Lane
Shaftesbury
Dorset
SP7 8PJ
Auditor
Azets Audit Services
37 Commercial Road
Poole
Dorset
BH14 0HU
WESSEX GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -

The directors present the strategic report for the year ended 28 February 2023.

Business review

The Directors and Shareholders are very satisfied with the performance of both trading companies; Wessex Fire & Security Ltd and Wessex Electricals (Shaftesbury) Ltd.

Consolidated turnover has increased by a further 14% following last year's 29% growth after the previous COVID affected year and both trading companies made good profits with a consolidated pre-tax profit margin of 3.5%.

The trading companies have provided essential electrical (including fire & security) services since 1963 and, as we enter our 60th trading year, we look forward to serving our large core-base of long-standing customers including: councils, social housing organisations, health and education institutions. We also place enormous value on, and are equally grateful for, the numerous smaller organisations and individuals who choose Wessex for all their electrical, fire, security and wider property maintenance needs.

 

Post-pandemic demand continues to grow and we maintain a strong focus on meeting and, whenever possible, exceeding our customers’ expectations - our customer satisfaction (NPS) scores are exceptional and a source of great pride. Whilst recruitment remains a challenge, we have been able to increase staff numbers by 6% and have 154 skilled tradespersons supported by 53 office-based staff with little or no home working. We recruited a further eight Apprentices during the year, demonstrating our firm and long-term commitment to industry skills training.

 

In June, we were delighted to appoint Russell Miles as our Managing Director of Wessex Fire & Security Ltd. Russell has been with the Company since 2018, first as a Project Manager and ultimately promoted from his role as Service Manager. Russell brings a wealth of experience in senior management positions since completing his electrical apprenticeship with SSE Contracting in 2004.

 

Financial key performance indicators

The Group’s consolidated turnover amounted to £19,295,281 compared to £16,868,007 in the previous year.

 

The Group made a pre-tax profit of £679,007 compared to £777,354 in the previous year.

 

The balance sheet remains very strong. Cash at bank and in hand stands at £5,542,679 and total equity is valued at £6,616,334 (2022 - £6,440,743).

 

Other performance indicators

During the year the average number of staff employed across the group was 207 (2022 - 195).

During the year there was one RIDDOR reportable accident, due to an Employee slipping on a wet cobbled footpath, which required an absence of over 7 days to recuperate - following two years with no reportable accidents this was a disappointment. All companies actively encourage the reporting of all injuries and near misses, no matter how minor and investigate all incidents. The Group is delighted to add a second RoSPA Gold Award to the one won last year.

WESSEX GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -
Principal risks and uncertainties

The Group is in excellent financial health and no significant risks have been identified. We are acutely aware of our need to retain key customers and continue to invest in good contract management and customer service initiatives.

The Group is aware of the risks associated with the management of health and safety at work and this remains top of our business agenda.

The Group relies heavily on electronic data and identifies the loss of this data as a principle risk. We are very aware of the risk from cyber-attack and invest heavily in both cyber security and high-quality data replication, back-up and restore technology to underpin our business continuity (disaster recovery) plan.

The Group continues to update our risk assessment in respect of future possible pandemics and, as identified in previous years, the effects of consumer led inflation and the shortage of materials (especially lithium batteries & semiconductors).

The Group remains conscious of the global consequences of Russian sanctions, following their invasion of Ukraine, specifically the cost of energy.

The Group has identified the secondary effects of a prolonged period of high bank interest rates as a potential risk, although we are not directly affected given our lack of borrowings and cash in hand.

 

This report was approved by the board and signed on its behalf by:
Mr S Morgan
Director
6 October 2023
WESSEX GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 4 -

The directors present their annual report and financial statements for the year ended 28 February 2023.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr S Morgan
Mr A Morgan
Ms. D L Harry
Mr. R M Hall
Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £349,356. The directors do not recommend payment of a further dividend.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

This report was approved by the board and signed on its behalf by:
..............................
Mr A Morgan
Director
6 October 2023
WESSEX GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 5 -

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:

 

 

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.

WESSEX GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WESSEX GROUP LIMITED
- 6 -
Opinion

We have audited the financial statements of Wessex Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 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 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor'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.

Other information

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:

WESSEX GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WESSEX GROUP LIMITED
- 7 -
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:

 

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.

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.

WESSEX GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WESSEX GROUP LIMITED
- 8 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

To address the risk of fraud through management bias and override of controls, we:

WESSEX GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WESSEX GROUP LIMITED
- 9 -

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Andrew John Singleton FCCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
Chartered Accountants
Statutory Auditor
37 Commercial Road
Poole
Dorset
BH14 0HU
9 October 2023
WESSEX GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
19,295,281
16,868,007
Cost of sales
(13,975,491)
(11,934,094)
Gross profit
5,319,790
4,933,913
Administrative expenses
(4,699,695)
(4,288,208)
Other operating income
49,856
107,608
Operating profit
4
669,951
753,313
Interest receivable and similar income
8
11,440
455
Interest payable and similar expenses
9
(19,457)
(11,707)
Amounts written off investments
17,073
35,293
Profit before taxation
679,007
777,354
Tax on profit
10
(154,060)
(131,733)
Profit for the financial year
25
524,947
645,621
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

WESSEX GROUP LIMITED
GROUP BALANCE SHEET
AS AT
28 FEBRUARY 2023
28 February 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
124,576
191,816
Tangible assets
13
2,799,156
2,710,937
Investments
14
1
1
2,923,733
2,902,754
Current assets
Stocks
17
1,286,037
1,248,215
Debtors
18
3,153,334
2,800,931
Cash at bank and in hand
5,542,679
3,886,528
9,982,050
7,935,674
Creditors: amounts falling due within one year
19
(5,829,134)
(4,172,936)
Net current assets
4,152,916
3,762,738
Total assets less current liabilities
7,076,649
6,665,492
Creditors: amounts falling due after more than one year
20
(256,779)
(137,980)
Provisions for liabilities
Deferred tax liability
22
203,536
86,769
(203,536)
(86,769)
Net assets
6,616,334
6,440,743
Capital and reserves
Called up share capital
24
2,550
2,550
Revaluation reserve
25
877,555
888,890
Capital redemption reserve
25
1,570
1,570
Profit and loss reserves
25
5,734,659
5,547,733
Total equity
6,616,334
6,440,743
The financial statements were approved and authorised for issue by the board of directors and are signed on its behalf by:
Mr A Morgan
Director
6 October 2023
2023-10-23
WESSEX GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 28 FEBRUARY 2023
28 February 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
58
117
Tangible assets
13
1,657,690
1,692,545
Investments
14
4,136
4,136
1,661,884
1,696,798
Current assets
Debtors
18
333,160
370,322
Cash at bank and in hand
155,306
117,971
488,466
488,293
Creditors: amounts falling due within one year
19
(938,711)
(1,138,726)
Net current liabilities
(450,245)
(650,433)
Net assets
1,211,639
1,046,365
Capital and reserves
Called up share capital
24
2,550
2,550
Revaluation reserve
25
877,555
888,890
Capital redemption reserve
25
1,570
1,570
Profit and loss reserves
25
329,964
153,355
Total equity
1,211,639
1,046,365

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 £514,630 (2022: £29,974 profit).

The financial statements were approved and authorised for issue by the board of directors and are signed on its behalf by:
Mr A Morgan
Director
6 October 2023
Company Registration No. 02457125
WESSEX GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 13 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 March 2021
2,800
911,558
1,320
5,309,220
6,224,898
Year ended 28 February 2022:
Profit and total comprehensive income for the year
-
-
-
645,621
645,621
Dividends
11
-
-
-
(179,776)
(179,776)
Own shares acquired
-
-
-
(250,000)
(250,000)
Redemption of shares
24
(250)
-
250
-
-
0
Transfers
-
(22,668)
-
22,668
-
Balance at 28 February 2022
2,550
888,890
1,570
5,547,733
6,440,743
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
-
-
524,947
524,947
Dividends
11
-
-
-
(349,356)
(349,356)
Transfers
-
(11,335)
-
11,335
-
Balance at 28 February 2023
2,550
877,555
1,570
5,734,659
6,616,334
WESSEX GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 14 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 March 2021
2,800
911,558
1,320
530,489
1,446,167
Year ended 28 February 2022:
Profit and total comprehensive income for the year
-
-
-
29,974
29,974
Dividends
11
-
-
-
(179,776)
(179,776)
Own shares acquired
-
-
-
(250,000)
(250,000)
Redemption of shares
24
(250)
-
250
-
-
0
Transfers
-
(22,668)
-
22,668
-
Balance at 28 February 2022
2,550
888,890
1,570
153,355
1,046,365
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
-
-
514,630
514,630
Dividends
11
-
-
-
(349,356)
(349,356)
Transfers
-
(11,335)
-
11,335
-
Balance at 28 February 2023
2,550
877,555
1,570
329,964
1,211,639
WESSEX GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
27
2,498,889
(32,380)
Interest paid
(19,457)
(11,707)
Income taxes paid
(34,989)
(49,446)
Net cash inflow/(outflow) from operating activities
2,444,443
(93,533)
Investing activities
Purchase of tangible fixed assets
(212,987)
(323,347)
Proceeds on disposal of tangible fixed assets
270,749
214,652
Interest received
11,440
455
Net cash generated from/(used in) investing activities
69,202
(108,240)
Financing activities
Redemption of shares
-
0
(250,000)
Payment of finance leases obligations
(508,138)
(324,172)
Dividends paid to equity shareholders
(349,356)
(179,776)
Net cash used in financing activities
(857,494)
(753,948)
Net increase/(decrease) in cash and cash equivalents
1,656,151
(955,721)
Cash and cash equivalents at beginning of year
3,886,528
4,842,249
Cash and cash equivalents at end of year
5,542,679
3,886,528
WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 16 -
1
Accounting policies
Company information

Wessex Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Wessex House, Wincombe Lane, Shaftesbury, Dorset, SP7 8PJ.

 

The group consists of Wessex Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

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.

The consolidated group financial statements consist of the financial statements of the parent company Wessex 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 28 February 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.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 17 -
1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services 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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
8 years straight line
1.6
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:

Leasehold land and buildings
2% straight line
Plant and equipment
25% straight line
Fixtures and fittings
12.5% straight line
Computers
20% and 25% straight line
Motor vehicles
25% straight line
Mobile phones
33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
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.

WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 18 -

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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 19 -
1.9
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 held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.10
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, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 20 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
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.

1.13
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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 22 -
1.16
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.

1.17
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.

WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 23 -
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.

Impairment of trade and other receivables

The provision policy for impairment of trade and other receivables of the Group is based on the ongoing evaluation of the collectability, aged analysis of the outstanding receivables and management's judgement. A considerable amount of judgement is required in assessing the ultimate realisation of these receivables, including creditworthiness and the past collection history of each customer.

Impairment of WIP

The provision policy for impairment of WIP is based on the ongoing evaluation of the individual jobs and management's judgement. A considerable amount of judgement is required in assessing the ultimate realisation of the profit in WIP and provisions are made against WIP accordingly.

Provision for obsolete stock

Management is required to exercise significant judgement in estimating the provision for obsolete stock. This judgement takes into account the age of the stock item and the movement history.

Revenue and profit recognition

Revenue and profit recognition requires forecasts to be made on the outcome of long term contracts which require assessments and judgements to be made to estimate the expected remaining costs and revenues.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sales
19,295,281
16,868,007
2023
2022
£
£
Other significant revenue
Interest income
11,440
455
Grants received
-
74,860
WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 24 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(74,860)
Depreciation of owned tangible fixed assets
331,740
346,376
Depreciation of tangible fixed assets held under finance leases
268,052
194,494
Profit on disposal of tangible fixed assets
(193,279)
(185,101)
Amortisation of intangible assets
67,240
67,753
Cost of stocks recognised as an expense
6,578,652
4,502,445
Stocks impairment losses recognised or reversed
21,173
29,031
Operating lease charges
36,935
36,267
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
11,950
10,875
Audit of the financial statements of the company's subsidiaries
13,750
12,500
25,700
23,375
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
Direct labour
154
145
-
-
Sales and administration
53
50
20
19
Total
207
195
20
19

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
8,017,437
7,650,382
580,634
584,660
Social security costs
27,006
28,846
27,006
22,736
Pension costs
177,863
185,548
30,766
29,668
8,222,306
7,864,776
638,406
637,064
WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 25 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
223,425
199,023
Company pension contributions to defined contribution schemes
24,787
23,396
248,212
222,419

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
94,454
-
Company pension contributions to defined contribution schemes
11,178
-
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
11,440
455

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
11,440
455
9
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
19,457
11,707
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
46,410
34,987
WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
10
Taxation
2023
2022
£
£
(Continued)
- 26 -
Deferred tax
Origination and reversal of timing differences
107,650
96,746
Total tax charge
154,060
131,733

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
679,007
777,354
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
129,011
147,697
Tax effect of expenses that are not deductible in determining taxable profit
1,093
83
Permanent capital allowances in excess of depreciation
24,485
(13,606)
Other permanent differences
(529)
(2,441)
Taxation charge
154,060
131,733
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
349,356
179,776
WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 27 -
12
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 March 2022 and 28 February 2023
19,500
671,272
690,772
Amortisation and impairment
At 1 March 2022
19,500
479,456
498,956
Amortisation charged for the year
-
0
67,240
67,240
At 28 February 2023
19,500
546,696
566,196
Carrying amount
At 28 February 2023
-
0
124,576
124,576
At 28 February 2022
-
0
191,816
191,816
Company
Software
£
Cost
At 1 March 2022 and 28 February 2023
19,719
Amortisation and impairment
At 1 March 2022
19,602
Amortisation charged for the year
59
At 28 February 2023
19,661
Carrying amount
At 28 February 2023
58
At 28 February 2022
117
WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 28 -
13
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 March 2022
1,600,000
109,907
398,338
270,398
1,918,415
4,297,058
Additions
-
0
15,612
8,310
63,087
678,472
765,481
Disposals
-
0
(2,240)
-
0
(32,687)
(472,182)
(507,109)
At 28 February 2023
1,600,000
123,279
406,648
300,798
2,124,705
4,555,430
Depreciation and impairment
At 1 March 2022
63,956
90,342
283,422
176,408
971,993
1,586,121
Depreciation charged in the year
31,977
9,129
45,296
51,046
462,344
599,792
Eliminated in respect of disposals
-
0
(2,240)
-
0
(31,747)
(395,652)
(429,639)
At 28 February 2023
95,933
97,231
328,718
195,707
1,038,685
1,756,274
Carrying amount
At 28 February 2023
1,504,067
26,048
77,930
105,091
1,086,020
2,799,156
At 28 February 2022
1,536,044
19,565
114,916
93,990
946,422
2,710,937
WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
13
Tangible fixed assets
(Continued)
- 29 -
Company
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 March 2022
1,600,000
60,484
398,534
118,742
38,817
2,216,577
Additions
-
0
-
0
7,545
24,648
49,487
81,680
Disposals
-
0
-
0
-
0
(369)
(38,817)
(39,186)
At 28 February 2023
1,600,000
60,484
406,079
143,021
49,487
2,259,071
Depreciation and impairment
At 1 March 2022
63,956
60,484
282,706
93,450
23,436
524,032
Depreciation charged in the year
31,977
-
0
45,032
18,015
11,018
106,042
Eliminated in respect of disposals
-
0
-
0
-
0
(369)
(28,324)
(28,693)
At 28 February 2023
95,933
60,484
327,738
111,096
6,130
601,381
Carrying amount
At 28 February 2023
1,504,067
-
0
78,341
31,925
43,357
1,657,690
At 28 February 2022
1,536,044
-
0
115,828
25,292
15,381
1,692,545

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Motor vehicles
827,260
645,093
-
0
-
0

Land and buildings with a carrying amount of £1,600,000 were revalued at 29 February 2020 by Messrs Woolley & Wallis (Chartered Surveyors), independent valuers not connected with the company on the basis of existing use.

 

WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
13
Tangible fixed assets
(Continued)
- 30 -
2023
2022
£
£
Group
Cost
1,039,843
1,039,843
Accumulated depreciation
(431,302)
(410,658)
Carrying value
608,541
629,185
Company
Cost
1,039,843
1,039,843
Accumulated depreciation
(431,302)
(410,658)
Carrying value
608,541
629,185
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
4,136
4,136
Unlisted investments
1
1
-
0
-
0
1
1
4,136
4,136
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 March 2022 and 28 February 2023
1
Carrying amount
At 28 February 2023
1
At 28 February 2022
1
WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
14
Fixed asset investments
(Continued)
- 31 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 March 2022 and 28 February 2023
4,136
Carrying amount
At 28 February 2023
4,136
At 28 February 2022
4,136
15
Subsidiaries

Details of the company's subsidiaries at 28 February 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Wessex Fire and Security Limited
UK
Ordinary
100.00
-
Wiltshire and Willey Electrical Limited
UK
Ordinary
-
100.00
Wessex Electricals (Shaftesbury) Limited
UK
Ordinary
100.00
-
Wessex Renewable Energy Limited
UK
Ordinary
100.00
-
Wessex Limited
UK
Ordinary
100.00
-
Wessex Electricals Limited
UK
Ordinary
100.00
-
Wessex Alarms Limited
UK
Ordinary
100.00
-
Wessex Heating and Plumbing Limited
UK
Ordinary
100.00
-
Wessex Security and Fire Limited
UK
Ordinary
100.00
-
Wessex Response Limited
UK
Ordinary
100.00
-
16
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,944,337
2,590,103
275,588
315,386
Equity instruments measured at cost less impairment
1
1
-
-
Carrying amount of financial liabilities
Measured at amortised cost
5,328,201
3,752,559
877,676
1,077,673
WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 32 -
17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
1,017,846
872,562
-
-
Finished goods and goods for resale
268,191
375,653
-
0
-
0
1,286,037
1,248,215
-
-
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,656,955
2,223,675
1,457
815
Amounts owed by group undertakings
-
-
61,093
40,354
Other debtors
287,382
366,428
213,038
274,217
Prepayments and accrued income
185,366
196,314
33,941
40,422
3,129,703
2,786,417
309,529
355,808
Deferred tax asset (note 22)
23,631
14,514
23,631
14,514
3,153,334
2,800,931
333,160
370,322
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
21
232,557
307,000
-
0
-
0
Payments received on account
584,187
517,703
-
0
-
0
Trade creditors
2,705,730
1,202,216
133,014
104,709
Amounts owed to group undertakings
-
0
-
0
683,533
906,081
Corporation tax payable
46,410
34,989
-
0
-
0
Other taxation and social security
711,302
523,368
61,035
61,053
Other creditors
253,280
243,037
3,991
24,534
Accruals and deferred income
1,295,668
1,344,623
57,138
42,349
5,829,134
4,172,936
938,711
1,138,726
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
21
256,779
137,980
-
0
-
0
WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 33 -
21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
232,557
307,000
-
0
-
0
In two to five years
256,779
137,980
-
0
-
0
489,336
444,980
-
-

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 2 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Finance lease liabilities are secured against the assets to which they relate.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
203,536
86,769
-
-
Tax losses
-
-
23,631
14,514
203,536
86,769
23,631
14,514
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Tax losses
-
-
23,631
14,514
Group
Company
2023
2023
Movements in the year:
£
£
Liability/(asset) at 1 March 2022
72,255
(14,514)
Charge/(credit) to profit or loss
215,300
(9,117)
Liability/(asset) at 28 February 2023
287,555
(23,631)
WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
22
Deferred taxation
(Continued)
- 34 -

The deferred tax asset set out above is expected to reverse within 12 months and relates to decelerated capital allowances that are expected to mature within the same period. The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
177,863
185,548

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.

24
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
2,550 Ordinary shares of £1 each
2,550
2,550
25
Reserves
Revaluation reserve

The revaluation reserve represents the excess of the revalued amount over the historic cost of revalued assets.

Capital redemption reserve

The capital redemption reserve represents the nominal value of bought back shares that were cancelled.

26
Related party transactions
Transactions with related parties

The Company has taken advantage of the exemption in FRS 102 from disclosing transactions with wholly owned subsidiaries of the Group headed by Wessex Group Limited.

WESSEX GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 35 -
27
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
524,947
645,621
Adjustments for:
Taxation charged
154,060
131,733
Finance costs
19,457
11,707
Investment income
(11,440)
(455)
Gain on disposal of tangible fixed assets
(193,279)
(185,101)
Amortisation and impairment of intangible assets
67,240
67,753
Depreciation and impairment of tangible fixed assets
599,792
540,870
Movements in working capital:
Increase in stocks
(37,822)
(168,491)
Increase in debtors
(343,286)
(580,495)
Increase/(decrease) in creditors
1,719,220
(495,522)
Cash generated from/(absorbed by) operations
2,498,889
(32,380)
28
Analysis of changes in net funds - group
1 March 2022
Cash flows
28 February 2023
£
£
£
Cash at bank and in hand
3,886,528
1,656,151
5,542,679
Obligations under finance leases
(444,980)
(44,356)
(489,336)
3,441,548
1,611,795
5,053,343
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