T WRIGHT HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Company Registration No. 11567591 (England and Wales)
T WRIGHT HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr T E Wright
Mr S T Wright
Company number
11567591
Registered office
Hillam Road
Off Canal Road
Bradford
West Yorkshire
BD2 1QN
Auditor
Azets Audit Services
Carlton House
Grammar School Street
Bradford
BD1 4NS
Bankers
Natwest Bank PLC
1 Market Street
Bradford
BD1 1EG
T WRIGHT HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 33
T WRIGHT HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 31 March 2023.

Fair Review of the Business

The principal activity of the company continued to be that of the sale and installation of compressed air equipment.

 

During the year all the subsidiary undertakings were dormant.

 

Following the global Covid-19 pandemic, the directors put in place strong plans to recover the business back to levels prior to the pandemic. Broadly, these plans succeeded, and the businesses turnover increased by 7.1% on 21/22 figures. However, this was significantly less than budget, performance being hit over the year by the supply chain issues that were endemic in manufacturing that happened as a result of the fallout from Covid-19 and the Ukraine war and a reduction in demand due to general uncertainty in the marketplace. The financial year was in reality a year of two halves, the first being strong and the second half, with the exception of March relatively weak. Profit decreased due to a number of factors, the first being extra staff costs due to planned growth that didn’t fully materialise, increased depreciation due to the move to the new head office in January 2021 and increased IT costs ahead of a move to a new ERP system in late 2023.

 

During the year a full time Quality Safety Health Environment (QSHE) Co-Ordinator was appointed to assist in the running of the companies ISO9001 registered quality system and other functions within the business

 

Following our move into our new head office, in January 2021, we have seen significant synergies for the business. The co-location of the warehousing facility, our systems division and service department is allowing us to increase productivity and improve working practices. The directors still view the move as essential to realising a business fit for the future and that it has created a platform for the next 10 years growth.

Principal Risks and Uncertainties

As with the last year, the combined effects of Covid-19, Brexit and the Ukraine war weigh heavy on the business. Supply chain issues and customer wariness have remained prevalent since the start of the pandemic only alleviating later in the financial year.

Supply issues brought on by Brexit, which early on in the year might have seemed minor are now becoming a more dominant issue in terms of supply chain slowness.

 

Price escalation due to supply shortages make customer relations more challenging and since the outbreak of the Ukraine war. These price escalations have slowed since early 2023 but remain concerning. There has been a well-documented slowdown in manufacturing since early 2023 and the business has seen the effects of this continuing into the third quarter of 2023. With regard to the energy crisis, our energy prices have been fixed from 2020 until 2025, increasing energy prices do bring certain opportunities to supply more energy efficient equipment to our customers.

 

The business has contracted for a new ERP system covering all aspects of the businesses operations and this has increased costs in both the outgoing solution and added increased costs to the business for incoming solution that is yet to be implemented, also a lot of staff time is being spent on the project.

Development and performance

Thorite continues to seek new product ranges to add to the portfolio and continues to look for ways to expand the geographic coverage of the business, either through acquisitive or organic growth. We believe that the new ERP system will significantly aid the growth and efficiency of the business.

 

T WRIGHT HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

On behalf of the board

Mr S T Wright
Director
11 October 2023
T WRIGHT HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

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

Principal activities

The principal activity of the company and group continued to be that of sale and installation of compressed air equipment.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Preference dividends were paid amounting to £10,064. The directors do not recommend payment of a final dividend.

Directors

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

Mr T E Wright
Mr S T Wright
Auditor

Azets Audit Services Limited, trading as Azets Audit Services, were appointed auditor to the company following their acquisition of the trade of Naylor Wintersgill Limited, on 1 May 2023. In accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr S T Wright
Director
11 October 2023
T WRIGHT HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

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.

T WRIGHT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF T WRIGHT HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of T Wright Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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:

T WRIGHT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF T WRIGHT HOLDINGS LIMITED
- 6 -
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.

T WRIGHT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF T WRIGHT HOLDINGS LIMITED
- 7 -

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.

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.

Victoria Wainwright (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
11 October 2023
Chartered Accountants
Statutory Auditor
Carlton House
Grammar School Street
Bradford
BD1 4NS
T WRIGHT HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
21,197,342
19,862,709
Cost of sales
(16,196,563)
(15,102,252)
Gross profit
5,000,779
4,760,457
Distribution costs
(300,569)
(279,167)
Administrative expenses
(4,671,069)
(4,197,231)
Other operating income
60,714
140,508
Operating profit
6
89,855
424,567
Interest receivable and similar income
7
270
9
Interest payable and similar expenses
9
(72,746)
(47,221)
Profit before taxation
17,379
377,355
Tax on profit
11
(169,156)
(51,415)
(Loss)/profit for the financial year
(151,777)
325,940
(Loss)/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.
T WRIGHT HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
1
1
Other intangible assets
12
1,196
1,535
Total intangible assets
1,197
1,536
Tangible assets
13
4,989,153
4,672,267
4,990,350
4,673,803
Current assets
Stocks
15
2,621,297
2,521,169
Debtors
16
4,567,711
4,593,762
Cash at bank and in hand
1,698
769
7,190,706
7,115,700
Creditors: amounts falling due within one year
17
(6,682,383)
(6,204,012)
Net current assets
508,323
911,688
Total assets less current liabilities
5,498,673
5,585,491
Creditors: amounts falling due after more than one year
18
(1,377,885)
(1,469,004)
Provisions for liabilities
Deferred tax liability
20
420,321
254,179
(420,321)
(254,179)
Net assets
3,700,467
3,862,308
Capital and reserves
Called up share capital
23
536,789
536,789
Share premium account
765,886
765,886
Capital redemption reserve
11,812
11,812
Profit and loss reserves
2,385,980
2,547,821
Total equity
3,700,467
3,862,308
The financial statements were approved by the board of directors and authorised for issue on 11 October 2023 and are signed on its behalf by:
11 October 2023
Mr S T Wright
Director
Company registration number 11567591 (England and Wales)
T WRIGHT HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
2,589,223
2,618,180
Investments
14
40,719
40,719
2,629,942
2,658,899
Current assets
Debtors
16
4,604
28,474
Cash at bank and in hand
785
11
5,389
28,485
Creditors: amounts falling due within one year
17
(880,314)
(789,883)
Net current liabilities
(874,925)
(761,398)
Total assets less current liabilities
1,755,017
1,897,501
Creditors: amounts falling due after more than one year
18
(1,377,885)
(1,469,004)
Net assets
377,132
428,497
Capital and reserves
Called up share capital
23
536,789
536,789
Capital redemption reserve
3,019
3,019
Profit and loss reserves
(162,676)
(111,311)
Total equity
377,132
428,497

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £41,301 (2022 - £42,567 profit).

The financial statements were approved by the board of directors and authorised for issue on 11 October 2023 and are signed on its behalf by:
11 October 2023
Mr S T Wright
Director
Company registration number 11567591 (England and Wales)
T WRIGHT HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
537,172
765,886
11,429
2,262,851
3,577,338
Year ended 31 March 2022:
Profit and total comprehensive income
-
-
-
325,940
325,940
Dividends
10
-
-
-
(10,064)
(10,064)
Own shares acquired
-
-
-
(30,906)
(30,906)
Redemption of shares
23
(383)
-
383
-
-
0
Balance at 31 March 2022
536,789
765,886
11,812
2,547,821
3,862,308
Year ended 31 March 2023:
Loss and total comprehensive income
-
-
-
(151,777)
(151,777)
Dividends
10
-
-
-
(10,064)
(10,064)
Balance at 31 March 2023
536,789
765,886
11,812
2,385,980
3,700,467
T WRIGHT HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
537,172
2,636
(112,908)
426,900
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
42,567
42,567
Dividends
10
-
-
(10,064)
(10,064)
Own shares acquired
-
-
(30,906)
(30,906)
Redemption of shares
23
(383)
383
-
-
0
Balance at 31 March 2022
536,789
3,019
(111,311)
428,497
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
(41,301)
(41,301)
Dividends
10
-
-
(10,064)
(10,064)
Balance at 31 March 2023
536,789
3,019
(162,676)
377,132
T WRIGHT HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
28
(489,431)
363,043
Interest paid
(72,746)
(47,221)
Income taxes refunded
93,475
876
Net cash (outflow)/inflow from operating activities
(468,702)
316,698
Investing activities
Purchase of tangible fixed assets
(561,194)
(260,397)
Proceeds on disposal of tangible fixed assets
9,353
22,872
Interest received
270
9
Net cash used in investing activities
(551,571)
(237,516)
Financing activities
Purchase of treasury shares
-
0
(30,906)
Repayment of borrowings
1,207,689
(29,330)
Repayment of bank loans
(91,119)
(89,707)
Dividends paid to equity shareholders
(10,064)
(10,064)
Net cash generated from/(used in) financing activities
1,106,506
(160,007)
Net increase/(decrease) in cash and cash equivalents
86,233
(80,825)
Cash and cash equivalents at beginning of year
(213,484)
(132,659)
Cash and cash equivalents at end of year
(127,251)
(213,484)
Relating to:
Cash at bank and in hand
1,698
769
Bank overdrafts included in creditors payable within one year
(128,949)
(214,253)
T WRIGHT HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
153,937
155,681
Interest paid
(62,044)
(35,958)
Income taxes (paid)/refunded
-
876
Net cash inflow from operating activities
91,893
120,599
Investing activities
Interest received
-
0
8
Dividends received
10,064
5,032
Net cash generated from investing activities
10,064
5,040
Financing activities
Purchase of treasury shares
-
0
(30,906)
Repayment of bank loans
(91,119)
(89,707)
Dividends paid to equity shareholders
(10,064)
(10,064)
Net cash used in financing activities
(101,183)
(130,677)
Net increase/(decrease) in cash and cash equivalents
774
(5,038)
Cash and cash equivalents at beginning of year
11
5,049
Cash and cash equivalents at end of year
785
11
T WRIGHT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
1
Accounting policies
Company information

T Wright Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of T Wright Holdings 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. 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 financial statements incorporate those of T Wright Holdings Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the merger method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Thomas Wright / Thorite Group Limited has been included in the group financial statements using the merger method of accounting under FRS 102 Group Reconstructions . Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of Thomas Wright / Thorite Limited Limited for the current 12 month period and comparatives.

T WRIGHT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
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.

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 - goodwill

Acquired goodwill is written off in equal annual instalments over its estimated useful economic life.

 

There is no goodwill arising from business combinations as the acquisition of the subsidiary was a share for share exchange and merger relief has been applied to value the investment at the nominal value of the shares acquired.

1.6
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:

Patents
10% straight line
Patents are valued at cost less accumulated amortisation. Amortisation is calculated to write off the cost in equal instalments over their estimated useful lives.
1.7
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.

T WRIGHT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
1-4% straight line
Building improvements
2-5% straight line
Plant and equipment
20% straight line & 25% reducing balance
Fixtures and fittings
5% - 33% straight line & 25% reducing balance
Motor vehicles
25% & 33% reducing balance

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

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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.

1.9
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.

T WRIGHT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -

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.

1.10
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.

1.11
Cash at bank and in hand

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.

1.12
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.

T WRIGHT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
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.

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.

T WRIGHT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
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.

Derecognition of financial liabilities

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

1.13
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.

1.14
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.

T WRIGHT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
1.15
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.

1.16
Retirement benefits

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

1.17
Leases

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.

1.18
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.

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.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Turnover
21,197,342
19,862,709
T WRIGHT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 22 -
2023
2022
£
£
Turnover analysed by geographical market
Europe (EU)
78,780
94,389
Non-EU
49,772
124,022
U.K
21,068,790
19,644,298
21,197,342
19,862,709
2023
2022
£
£
Other revenue
Interest income
270
9
Grants received
9,000
117,766
4
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
1,500
1,500
Audit of the financial statements of the company's subsidiaries
7,500
7,500
9,000
9,000
5
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
Office and management
38
32
-
-
Sales, service and warehousing
98
100
-
-
Total
136
132
-
0
-
0
T WRIGHT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
5
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,623,140
4,263,992
-
0
-
0
Social security costs
517,657
469,099
-
0
-
0
Pension costs
149,135
124,821
-
0
-
0
5,289,932
4,857,912
-
0
-
0
6
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(9,000)
(117,766)
Depreciation of owned tangible fixed assets
235,561
190,479
Profit on disposal of tangible fixed assets
(606)
(5,875)
Amortisation of intangible assets
339
338
Operating lease charges
334,908
314,262
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
270
9
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
270
9
T WRIGHT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
304,345
434,828
Company pension contributions to defined contribution schemes
27,389
23,611
331,734
458,439
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
135,218
183,078
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
70,068
44,524
Other finance costs:
Other interest
2,678
2,697
Total finance costs
72,746
47,221
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
10,064
10,064
T WRIGHT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
3,014
30,113
Deferred tax
Origination and reversal of timing differences
166,142
21,302
Total tax charge
169,156
51,415

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
17,379
377,355
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
3,302
71,697
Tax effect of expenses that are not deductible in determining taxable profit
2,486
1,790
Tax effect of income not taxable in determining taxable profit
(115)
-
0
Tax effect of utilisation of tax losses not previously recognised
-
0
(7,132)
Unutilised tax losses carried forward
4,258
-
0
Capital allowances
(51,737)
(71,381)
Depreciation
44,820
35,139
Deferred tax movement
166,142
21,302
Taxation charge
169,156
51,415
T WRIGHT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
12
Intangible fixed assets
Group
Goodwill
Patents
Total
£
£
£
Cost
At 1 April 2022 and 31 March 2023
239,635
7,131
246,766
Amortisation and impairment
At 1 April 2022
239,634
5,596
245,230
Amortisation charged for the year
-
0
339
339
At 31 March 2023
239,634
5,935
245,569
Carrying amount
At 31 March 2023
1
1,196
1,197
At 31 March 2022
1
1,535
1,536
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
13
Tangible fixed assets
Group
Freehold land and buildings
Building improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2022
2,618,180
651,507
433,292
2,671,673
47,185
6,421,837
Additions
-
0
-
0
38,213
470,343
52,638
561,194
Disposals
-
0
-
0
(14,448)
(350)
(24,882)
(39,680)
At 31 March 2023
2,618,180
651,507
457,057
3,141,666
74,941
6,943,351
Depreciation and impairment
At 1 April 2022
-
0
41,507
361,696
1,307,622
38,745
1,749,570
Depreciation charged in the year
28,957
2,633
25,813
170,840
7,318
235,561
Eliminated in respect of disposals
-
0
-
0
(7,925)
(350)
(22,658)
(30,933)
At 31 March 2023
28,957
44,140
379,584
1,478,112
23,405
1,954,198
Carrying amount
At 31 March 2023
2,589,223
607,367
77,473
1,663,554
51,536
4,989,153
At 31 March 2022
2,618,180
610,000
71,596
1,364,051
8,440
4,672,267
T WRIGHT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
13
Tangible fixed assets
(Continued)
- 27 -
Company
Freehold land and buildings
£
Cost
At 1 April 2022 and 31 March 2023
2,618,180
Depreciation and impairment
At 1 April 2022
-
0
Depreciation charged in the year
28,957
At 31 March 2023
28,957
Carrying amount
At 31 March 2023
2,589,223
At 31 March 2022
2,618,180
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
-
0
-
0
40,719
40,719
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
40,719
Carrying amount
At 31 March 2023
40,719
At 31 March 2022
40,719
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
2,621,297
2,521,169
-
0
-
0
T WRIGHT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,843,299
4,021,768
4,604
28,474
Corporation tax recoverable
-
0
123,588
-
0
-
0
Other debtors
43,753
62,176
-
0
-
0
Prepayments and accrued income
680,659
386,230
-
0
-
0
4,567,711
4,593,762
4,604
28,474
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
128,949
214,253
-
0
-
0
Other borrowings
19
1,380,429
172,740
-
0
-
0
Trade creditors
3,980,899
4,491,360
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
817,700
729,584
Corporation tax payable
3,014
30,113
-
0
-
0
Other taxation and social security
426,153
369,554
8,569
4,017
Government grants
21
-
0
6,237
-
0
-
0
Other creditors
409,579
456,180
54,045
56,282
Accruals and deferred income
353,360
463,575
-
0
-
0
6,682,383
6,204,012
880,314
789,883
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
1,377,885
1,469,004
1,377,885
1,469,004
T WRIGHT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,377,885
1,469,004
1,377,885
1,469,004
Bank overdrafts
128,949
214,253
-
0
-
0
Other loans
1,380,429
172,740
-
0
-
0
2,887,263
1,855,997
1,377,885
1,469,004
Payable within one year
1,509,378
386,993
-
0
-
0
Payable after one year
1,377,885
1,469,004
1,377,885
1,469,004

The long-term loans are secured by fixed charges over the assets of the company.

The bank loan repayment terms are 5 years, with settlement in full by July 2024. The interest rate of the loan is 1.97% over base rate.

20
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
420,321
254,179
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 April 2022
254,179
-
Charge to profit or loss
166,142
-
Liability at 31 March 2023
420,321
-

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.

T WRIGHT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
21
Government grants
Group
Company
2023
2022
2023
2022
£
£
£
£
Arising from government grants
-
6,237
-
-
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
149,135
124,821

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.

23
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
377,005 (2022: 377,005) Ordinary shares of 10p each
37,700
37,700
Preference share capital
Issued and fully paid
Preference shares classified as equity
499,089
499,089
Total equity share capital
536,789
536,789

After the reporting date the group issued a further 220,686 preference shares for a price per share of £1.36. The coupon interest rate is 2% per annum.

T WRIGHT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
198,553
163,461
-
-
Between two and five years
314,124
274,851
-
-
In over five years
18,045
21,175
-
-
530,722
459,487
-
-
25
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
135,218
183,078
26
Directors' transactions

Dividends totalling £10,064 (2022 - £10,064) were paid in the year in respect of shares held by the company's directors.

The group leased a property jointly owned by director Mr S T Wright, Mr T E Wright and shareholder Mrs D Wright. The group also leased another property jointly owned by Mr T E Wright and Mrs D Wright. Total rent for the period of £34,128 (2022 - £34,128) was paid for the use of these properties.

Loans have been granted by the directors to the group as follows:

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors' loan account
4.89
184,873
18,043
6,828
(43,240)
166,504
184,873
18,043
6,828
(43,240)
166,504
T WRIGHT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 32 -
27
Controlling party

The ultimate controlling party is T E Wright, a director.

 

28
Cash generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(151,777)
325,940
Adjustments for:
Taxation charged
169,156
51,415
Finance costs
72,746
47,221
Investment income
(270)
(9)
Gain on disposal of tangible fixed assets
(606)
(5,875)
Amortisation and impairment of intangible assets
339
338
Depreciation and impairment of tangible fixed assets
235,561
190,479
Movements in working capital:
(Increase) in stocks
(100,128)
(433,978)
(Increase) in debtors
(97,537)
(426,485)
(Decrease)/increase in creditors
(610,678)
717,270
(Decrease) in deferred income
(6,237)
(1,965)
Cash (absorbed by)/generated from operations
(489,431)
464,351
29
Cash generated from operations - company
2023
2022
£
£
(Loss)/profit for the year after tax
(41,301)
42,567
Adjustments for:
Finance costs
62,044
35,958
Investment income
(10,064)
(5,040)
Depreciation and impairment of tangible fixed assets
28,957
-
Movements in working capital:
Decrease/(increase) in debtors
23,870
(22,897)
Increase in creditors
90,431
105,093
Cash generated from operations
153,937
155,681
T WRIGHT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 33 -
30
Analysis of changes in net debt - group
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
769
929
1,698
Bank overdrafts
(214,253)
85,304
(128,949)
(213,484)
86,233
(127,251)
Borrowings excluding overdrafts
(1,641,744)
(1,116,570)
(2,758,314)
(1,855,228)
(1,030,337)
(2,885,565)
31
Analysis of changes in net debt - company
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
11
774
785
Borrowings excluding overdrafts
(1,469,004)
91,119
(1,377,885)
(1,468,993)
91,893
(1,377,100)
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.100Mr T E WrightMr S T 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