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Registered number: 00671298









FARMILOE & FARMILOE (W.B.S.) LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
COMPANY INFORMATION


Directors
R A M Farmiloe 
T L C Farmiloe 
M Heining 
J W Horner 
G Williams 
G A Allen 
D Knight 




Registered number
00671298



Registered office
12a Fleet Business Park
Sandy Lane

Church Crookham

Fleet

Hants
England

GU52 8BF




Independent auditor
Barnes Roffe LLP
Chartered Accountants
Statutory Auditor

Leytonstone House

Leytonstone

London

E11 1GA





 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 

CONTENTS



Page
Strategic report
 
1
Directors' report
 
2 - 3
Independent auditor's report
 
4 - 7
Statement of comprehensive income
 
8
Balance sheet
 
9
Statement of changes in equity
 
10
Statement of cash flows
 
11
Notes to the financial statements
 
12 - 27

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Introduction
 
The directors present their Strategic Report for the year ended 31 March 2023.

Business review
 
The Company, following previous strategies has managed to maintain its turnover at very similar levels to 2022 showing a reduction of less than 0.07%. Gross profit margins have remained at 29.7% which is the same as that in the year ending March 2022.
Operating profits have increased to £391k compared to the prior year, which the directors consider to be a direct result of their strategy previously set.
Trading margins remain a focus of management as well as previous targets to control costs and keeping the stock management processes in force.
The Company cash shows a large decrease from £1.4m to £197k but this is an unfair comparison without some comment. The Company had a policy in 2022 of drawing the maximum cash from its facility which was not repeated in 2023. This is shown by the reduction in creditors reducing from £3.8m to £2.3m.
At the year end the Company had net current assets of £2.7m showing an increase over the 2022 figure of £2.4m.

Principal risks and uncertainties
 
The principal business risks and uncertainties affecting the Company are considered to relate to competition for market share in the high value and mid value product range. The directors are consistently looking at the product range and the markets in which they operate. 
The Company faces exposure to price risk due to the competitive nature of the market in which it operates. To manage these risks the directors are negotiating optimum deals with suppliers and customers.
 
The Company is subject to foreign currency risk, due to increased trade in the European market. Foreign exchange contracts are used and will continue to be used, if favourable to do so, going forwards. 

Financial key performance indicators
 
The Company consider turnover, gross profit, operating profit, net current assets and net current liabilities as its key performance indicators. The results of these have been discussed in the business review. 


This report was approved by the board on 20 October 2023 and signed on its behalf.



T L C Farmiloe
Director
Page 1

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £351,699 (2022 - £200,743).

The directors do not propose a dividend (2022 - Nil).

Directors

The directors who served during the year were:

R A M Farmiloe 
T L C Farmiloe 
M Heining 
J W Horner 
G Williams
G A Allen
D Knight
 

Future developments

We believe that the Company is well placed in the market and the strength and sustainability of the Company's position is underpinned by its in-depth knowledge of the industry, its extensive data base and its reputation. As a result the Company will continue to develop to deal with any changes to the market as described in the Strategic Report.  

Page 2

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no post balance sheet events.

Auditor

The auditor, Barnes Roffe LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 20 October 2023 and signed on its behalf.
 





T L C Farmiloe
Director
Page 3

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FARMILOE & FARMILOE (W.B.S.) LIMITED
 

Opinion


We have audited the financial statements of Farmiloe & Farmiloe (W.B.S.) Limited (the 'Company') for the year ended 31 March 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 Company's affairs as at 31 March 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 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 ReportOur 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.

Page 4

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FARMILOE & FARMILOE (W.B.S.) LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report 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, or returns adequate for our audit have not been received from branches not visited by us; or
the 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 set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Page 5

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FARMILOE & FARMILOE (W.B.S.) LIMITED (CONTINUED)


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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities we  considered the following:
 
Obtained an understanding of the nature of the industry and sector, including the legal and  regulatory frameworks that the Company operates in and how the Company are  complying with the legal and regulatory frameworks;
Enquired of management, and those charged with governance, about their own identification  and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
Discussed matters about non-compliance with laws and regulations and how fraud might occur  including assessment of how and where the financial statements may be susceptible to fraud.

Any instances of non-compliance with laws and regulations identified and communicated were considered in our audit approach. The most significant laws and regulations were determined as follows:
 
UK GAAP FRS 102 and Companies Act; and
Tax compliance regulations.

Additional audit procedures performed by the audit engagement team included:

Review of the financial statement disclosures and testing to supporting documentation;
Completion of disclosure checklists to identify areas of non-compliance.

The areas that we identified as being susceptible to material misstatement due to fraud were:

Revenue Recognition;
Management Override.

Page 6

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FARMILOE & FARMILOE (W.B.S.) LIMITED (CONTINUED)


Audit procedures in response to the identified areas above:

Obtaining an understanding of the processes and controls around revenue recognition;
Substantively testing revenue via various testing including transactional, cut off and sequencing;
Evaluation of the appropriateness of the accounting policies;
Testing the appropriateness of journal entries and other adjustments;
Assessing whether the judgements made in making accounting estimates are indicative of a potential bias;
Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.

Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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.




Stuart Moon (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants
Statutory Auditor
Leytonstone House
Leytonstone
London
E11 1GA

20 October 2023
Page 7

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
Note
£
£

  

Turnover
 4 
12,117,546
12,125,857

Cost of sales
  
(8,519,197)
(8,526,994)

Gross profit
  
3,598,349
3,598,863

Distribution costs
  
(1,411,254)
(1,397,493)

Administrative expenses
  
(1,815,463)
(1,985,797)

Other operating income
 5 
20,000
64,880

Operating profit
 6 
391,632
280,453

Interest payable and similar charges
 9 
(27,710)
(35,773)

Profit before tax
  
363,922
244,680

Tax on profit
 10 
(12,223)
(43,937)

Profit for the financial year
  
351,699
200,743

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 12 to 27 form part of these financial statements.
Page 8

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
REGISTERED NUMBER: 00671298

BALANCE SHEET
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
181,146
166,258

Current assets
  

Stocks
 13 
1,934,395
1,701,100

Debtors: amounts falling due within one year
 14 
2,835,888
2,979,195

Cash at bank and in hand
 15 
196,746
1,493,309

  
4,967,029
6,173,604

Creditors: amounts falling due within one year
 16 
(2,295,562)
(3,809,436)

Net current assets
  
 
 
2,671,467
 
 
2,364,168

Total assets less current liabilities
  
2,852,613
2,530,426

Provisions for liabilities
  

Deferred tax
 18 
-
(29,512)

Net assets
  
2,852,613
2,500,914


Capital and reserves
  

Called up share capital 
 19 
260,000
260,000

Profit and loss account
  
2,592,613
2,240,914

  
2,852,613
2,500,914


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 20 October 2023.




T L C Farmiloe
Director

The notes on pages 12 to 27 form part of these financial statements.
Page 9

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2021
260,000
2,040,171
2,300,171



Profit for the year
-
200,743
200,743



At 1 April 2022
260,000
2,240,914
2,500,914



Profit for the year
-
351,699
351,699


At 31 March 2023
260,000
2,592,613
2,852,613


The notes on pages 12 to 27 form part of these financial statements.
Page 10

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
351,699
200,743

Adjustments for:

Depreciation of tangible assets
61,666
31,876

Loss on disposal of tangible assets
-
(28,728)

Interest paid
27,710
35,773

Taxation charge
12,223
43,937

(Increase) in stocks
(233,295)
(162,434)

Decrease/(increase) in debtors
161,238
(588,264)

(Decrease)/increase in creditors
(272,368)
97,055

Corporation tax (paid)
(54,090)
(85,239)

Net cash generated from operating activities

54,783
(455,281)


Cash flows from investing activities

Purchase of tangible fixed assets
(76,554)
(150,054)

Sale of tangible fixed assets
-
28,728

Net cash from investing activities

(76,554)
(121,326)

Cash flows from financing activities

New secured loans
-
(625,000)

Movements on invoice discounting
(1,247,082)
410,721

Interest paid
(27,710)
(35,773)

Net cash used in financing activities
(1,274,792)
(250,052)

Net (decrease) in cash and cash equivalents
(1,296,563)
(826,659)

Cash and cash equivalents at beginning of year
1,493,309
2,319,968

Cash and cash equivalents at the end of year
196,746
1,493,309


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
196,746
1,493,309


The notes on pages 12 to 27 form part of these financial statements.

Page 11

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

Farmiloe & Farmiloe (W.B.S.) Limited is a private company limited by shares, incorporated in England and Wales. The registered office is 12a Fleet Business Park, Sandy Lane, Church Crookham, Fleet, Hants, England, GU52 8BF.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of comprehensive income within administrative expenses.

Page 12

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

The Company recognises revenue upon delivery of goods. 

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight-line basis over the lease term.

 
2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

 
2.6

Finance costs

Finance costs are charged to Statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 13

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of comprehensive income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.9

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Software licenses
-
4
years

Considering that the software is likely to be used by the Company for a minimum of four years, the directors believe that the amortisation period is appropriate.

Page 14

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following annual basis:

Long-term leasehold property
-
Over the term of the lease
Motor vehicles
-
20-25% straight line
Fixtures and fittings
-
20-25% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Included in cost is the directly attributable freight costs incurred upon purchase.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in Statement of comprehensive income.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Page 15

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

 
2.16

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Page 16

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.16
Financial instruments (continued)

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 17

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. 
The directors have made a provision against stock for potential slow-moving and obsolete items due to changes in fashion and discontinuation of certain ranges by suppliers.  The directors maintain good relationships with suppliers but the estimated provision is deemed prudent given the nature of the industry. The estimate is 10% of the value of stock and is included in note 13.


4.


Turnover

The whole of the turnover is attributable to principal activity of the Company being the provider of bathroom and sanitary products. 

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
12,056,339
11,679,781

Rest of Europe
61,207
446,076

12,117,546
12,125,857



5.


Other operating income

2023
2022
£
£

Government grants receivable
-
64,880

Settlement income
20,000
-


Page 18

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

6.


Operating profit

The operating profit is stated after charging/(crediting):

2023
2022
£
£

Pensions
49,006
72,234

Car lease rentals
140,394
161,226

Other operating lease rentals
5,095
4,292

Profit on disposal
-
(28,728)

Depreciation
61,666
31,876

Building lease rentals
203,360
171,651

Exchange differences
47,141
(12,443)

Auditor's remuneration
15,500
15,000


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
1,661,139
1,944,454

Social security costs
192,179
214,286

Cost of defined contribution scheme
49,006
72,234

1,902,324
2,230,974


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Directors
7
7



Accounts staff
3
3



Office/admin staff
13
11



Sales staff
10
9



Warehouse/drivers
9
8

42
38

Page 19

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

8.

Directors' remuneration

2023
2022
£
£
Directors' emoluments

569,975

1,071,882
 
Company contributions to defined contribution pension schemes

17,672

23,581
 

587,647

1,095,463
 

During the year retirement benefits were accruing to 3 directors (2022 - 3) in respect of defined contribution pension schemes.
The highest paid director received remuneration of £156,338
 (2022 - £372,240).
The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £Nil (2022 - £Nil).


9.


Interest payable and similar charges

2023
2022
£
£


Bank interest payable
-
95

Invoice discounting charges
27,710
32,076

Other interest payable
-
3,602

27,710
35,773


10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
24,202
18,626

Adjustments in respect of previous periods
35,464
-


Deferred tax


Origination and reversal of timing differences
42,120
22,042

Adjustment in respect of previous periods
(85,259)
3,269

Effect of changes in tax rates
(4,304)
-


Taxation on profit on ordinary activities
12,223
43,937
Page 20

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
363,922
244,680


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
69,145
46,489

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,647
403

Capital allowances for year in excess of depreciation
(4,470)
(6,224)

Adjustment in respect of previous periods
(49,795)
3,269

Tax rate changes
(4,304)
-

Total tax charge for the year
12,223
43,937


Factors that may affect future tax charges

At the Budget 2021 on 3 March 2021, the Government announced that the Corporation tax rate will increase to 25% for companies with profits above £250,000 with effect from 1 April 2023, as well as announcing a number of other changes to allowances and treatment of losses. 

Page 21

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

11.


Intangible assets




Computer software

£



Cost


At 1 April 2022
81,763



At 31 March 2023

81,763



Amortisation


At 1 April 2022
81,763



At 31 March 2023

81,763



Net book value



At 31 March 2023
-



At 31 March 2022
-



Page 22

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

12.


Tangible fixed assets





Long-term leasehold property
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost


At 1 April 2022
98,977
159,232
835,507
1,093,716


Additions
1,450
51,334
23,770
76,554



At 31 March 2023

100,427
210,566
859,277
1,170,270



Depreciation


At 1 April 2022
85,167
95,393
746,898
927,458


Charge for the year on owned assets
4,062
28,734
28,870
61,666



At 31 March 2023

89,229
124,127
775,768
989,124



Net book value



At 31 March 2023
11,198
86,439
83,509
181,146



At 31 March 2022
13,810
63,839
88,609
166,258

Page 23

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

13.


Stocks

2023
2022
£
£

Finished goods and goods for resale
1,934,395
1,701,100


Included within stock is an impairment provision of £332,335 (2022 - £239,370).


14.


Debtors

2023
2022
£
£


Trade debtors
1,839,023
2,357,815

Amounts owed by group undertakings
135,187
2,595

Amounts owed by connected companies
505,222
339,022

Other debtors
104,549
118,916

Prepayments and accrued income
233,976
160,847

Deferred taxation
17,931
-

2,835,888
2,979,195



15.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
196,746
1,493,309


Page 24

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
1,030,079
1,066,880

Corporation tax
24,202
18,626

Other taxation and social security
306,205
332,840

Other creditors
522,843
1,730,772

Accruals and deferred income
412,233
660,318

2,295,562
3,809,436


Included within other creditors are amounts of £481,345 (2022 - £1,728,427) in respect of factored debts which are secured over the related debts and by a composite guarantee with the parent company and company under common control. 


17.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets that are debt instruments measured at amortised cost
2,685,945
4,200,693


Financial liabilities


Financial liabilities measured at amortised cost
(1,927,751)
(3,457,770)

Page 25

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

18.


Deferred taxation




2023
2022


£

£






At beginning of year
(29,512)
(4,201)


Credited to profit or loss
47,443
(25,311)



At end of year
17,931
(29,512)

The deferred taxation balance is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(41,310)
(30,460)

Other short term differences
59,241
948

17,931
(29,512)


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



260,000 (2022 - 260,000) Ordinary shares of £1.00 each
260,000
260,000



20.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The Company contributions to the scheme in the year ended 31 March 2023 totalled £49,006 (2022 - £72,234). At the balance sheet date the Company owed contributions of £6,865 (2022 - £4,987).

Page 26

 
FARMILOE & FARMILOE (W.B.S.) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

21.


Commitments under operating leases

At 31 March 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£



Not later than 1 year
30,000
30,000

Later than 1 year and not later than 5 years
70,000
100,000

100,000
130,000

2023
2022

£
£



Not later than 1 year
136,675
78,165

Later than 1 year and not later than 5 years
254,004
59,977

390,679
138,142


22.


Related party transactions

Transactions with group companies are not disclosed by virtue of the exemption claimed under FRS 102 Section 1AC.35.
At the year end the Company was owed £505,222
 (2022 - £339,022) from companies under common control. Movements in amounts owed relate to the net movement of recharged expenses and repayments thereof. 
During the year the Company paid rent of £202,503
 (2022 - £170,835) to a pension fund of which the directors have a beneficial interest and a company under common control. At the year end amounts were owed to the pension fund of £36,681 included within trade creditors.


23.


Controlling party

The immediate and ultimate parent undertaking is George Farmiloe & Sons Trading Limited, a company incorporated in England and Wales.
The ultimate controlling party is T L C Farmiloe, a director of the Company.
 
Page 27