Company registration number 04289185 (England and Wales)
SIMPSONS (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
SIMPSONS (UK) LIMITED
COMPANY INFORMATION
Directors
Mr V Modi
Mr M Tibrewala
Mr B Tibrewala
(Appointed 19 October 2023)
Secretary
Mr M Gandhi
Company number
04289185
Registered office
Unit 1
Beacon Business Park
Lodge Way
Caldicot
Monmouthshire
United Kingdom
NP26 5PX
Auditor
UHY Hacker Young
Bradbury House
Mission Court
Newport
Gwent
United Kingdom
NP20 2DW
Bankers
HSBC
38 Gwent Square
Cwmbran
Newport
NP44 1XL
SIMPSONS (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 33
SIMPSONS (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

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

Review of the business

The directors are content with the group's results for the year and are looking forward to progress in the coming year.

 

The trading results for the year and the group's financial position at the end of the year are shown in the attached financial statements. In addition to the monthly management accounts and information that is produced and monitored against the group's plan and the previous year's performance the Board uses key performance indicators in the management of the key risks of the business and as a measure of the business efficiencies of the group. The key performance indicators used to monitor performance are revenue and gross profit.

 

Revenue has decreased by 15.2% on the prior year. Gross profit margin has fallen to 11.1% (2022: 16.4%) for the year ended 31 March 2023. The reasons for the fall in revenue and gross profit margin are explained on page 2 under the Going concern and future prospects section.

 

Administrative expenses have however decreased by 43% on the prior year. This is mainly due to a large decrease in foreign exchange losses in the year from a £1.4m loss in 2022 to a £0.2m gain in the current year. This is a result of the decrease in trading activity particularly in the Polish subsidiary Roha Polska s.p. z.o.o. and the movement of foreign exchange rates as a significant proportion of stock purchases are in Chinese Yuan.

 

The group's net assets were £8,447,369 at 31 March 2023 (2022: £7,514,737).

Principal risks and uncertainties

The group's principal financial instruments comprise bank balances, bank overdrafts, loans, trade creditors, trade debtors, and finance lease agreements. The group does not use derivative financial instruments for speculative purposes.

 

The group's activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk.

 

Cash flow risk - Loans bear fixed interest rates, therefore the group does not have significant exposure to adverse movements in interest rates. The group's activities expose it to the financial risks of changes in foreign currency exchange rates. The group does not actively manage foreign currency exposure, however, there is a reasonable degree of natural hedge between foreign monetary assets and liabilities.

 

Credit risk - The group's principal financial assets are bank balances and cash, and trade and other receivables. The group's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. The group has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

 

Liquidity risk - In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the group uses a mixture of long-term equity and short-term debt finance.

 

Price risk - The group is exposed to commodity price risk. The group does not manage its exposure to commodity price risk due to cost benefit considerations.

 

Foreign exchange risk - The group's activities expose it to the financial risks of change in foreign currency exchange rates. When it is appropriate the group uses forward exchange contracts to reduce risk and protect it against adverse short term exchange movements.

SIMPSONS (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Going concern and future prospects

The present economic condition still continues to present several challenges in running standard business operations, there are many factors contributing to the loss of business volumes and lack of new business  development opportunities.  

 

- Lower customer demand/volumes

- On-going war between Russia and Ukraine

- Rise in interest rates

- Rising energy costs

- Rise in cost of living

- Brexit - shift of business leading to higher operational costs and duplication of expenses

- Lower profit margin due to highly competitive market due to low demand

 

Our business is not meeting its sales budget due to above factors but the management still pursue running the business operations with hope of better growth opportunities in the coming years.

On behalf of the board

Mr M Tibrewala
Director
1 November 2023
SIMPSONS (UK) 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 the buying and selling of industrial dyes.

Results and dividends

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

 

A fair review of the business is set out in the strategic report on page 1.

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

Directors

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

Mr R J Tibrewala
(Resigned 19 October 2023)
Mr V Modi
Mr M Tibrewala
Mr B Tibrewala
(Appointed 19 October 2023)
Auditor

UHY Hacker Young have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditor in the absence of an Annual 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 M Tibrewala
Director
1 November 2023
SIMPSONS (UK) 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.

SIMPSONS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SIMPSONS (UK) LIMITED
- 5 -
Opinion

We have audited the financial statements of Simpsons (UK) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

SIMPSONS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIMPSONS (UK) 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

We assessed the susceptibility of the group and parent company's financial statements to material misstatements, including obtaining an understanding of how fraud might occur, by:

SIMPSONS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIMPSONS (UK) LIMITED
- 7 -

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

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from the financial statements, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities 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.

Use of our report

This report is made solely to the members of Simpsons UK Limited, 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 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 Simpsons UK Limited and the members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr John Griffiths (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
1 November 2023
Chartered Accountants
Statutory Auditor
Newport
Gwent
United Kingdom
SIMPSONS (UK) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
27,716,954
32,672,445
Cost of sales
(24,653,539)
(27,322,152)
Gross profit
3,063,415
5,350,293
Administrative expenses
(2,315,872)
(4,073,868)
Other operating income
48,354
36,954
Operating profit
4
795,897
1,313,379
Interest payable and similar expenses
8
(61,870)
(48,628)
Profit before taxation
734,027
1,264,751
Tax on profit
9
(136,265)
(259,277)
Profit for the financial year
597,762
1,005,474
Profit for the financial year is all attributable to the owners of the parent company.
SIMPSONS (UK) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
£
£
Profit for the year
597,762
1,005,474
Other comprehensive income
Currency translation gain/(loss) taken to retained earnings
334,870
(175,115)
Total comprehensive income for the year
932,632
830,359
Total comprehensive income for the year is all attributable to the owners of the parent company.
SIMPSONS (UK) LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
175,986
576,340
Current assets
Stocks
14
6,336,458
7,068,804
Debtors
15
7,083,490
9,288,036
Cash at bank and in hand
2,969,776
2,075,163
16,389,724
18,432,003
Creditors: amounts falling due within one year
16
(8,098,406)
(9,899,488)
Net current assets
8,291,318
8,532,515
Total assets less current liabilities
8,467,304
9,108,855
Creditors: amounts falling due after more than one year
17
-
(1,519,861)
Provisions for liabilities
Deferred tax liability
20
19,935
74,257
(19,935)
(74,257)
Net assets
8,447,369
7,514,737
Capital and reserves
Called up share capital
22
17,681
17,681
Share premium account
486,355
486,355
Profit and loss reserves
7,943,333
7,010,701
Total equity
8,447,369
7,514,737
The financial statements were approved by the board of directors and authorised for issue on 1 November 2023 and are signed on its behalf by:
01 November 2023
Mr M Tibrewala
Director
Company registration number 04289185 (England and Wales)
SIMPSONS (UK) LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
154,516
181,857
Investments
11
1,984
1,984
156,500
183,841
Current assets
Stocks
14
1,270,089
1,710,968
Debtors
15
5,157,621
6,327,372
Cash at bank and in hand
1,981,417
1,569,733
8,409,127
9,608,073
Creditors: amounts falling due within one year
16
(1,634,805)
(3,141,079)
Net current assets
6,774,322
6,466,994
Total assets less current liabilities
6,930,822
6,650,835
Provisions for liabilities
Deferred tax liability
20
-
0
276
-
(276)
Net assets
6,930,822
6,650,559
Capital and reserves
Called up share capital
22
17,681
17,681
Share premium account
486,355
486,355
Profit and loss reserves
6,426,786
6,146,523
Total equity
6,930,822
6,650,559

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £280,263 (2022 - £359,702 profit).

The financial statements were approved by the board of directors and authorised for issue on 1 November 2023 and are signed on its behalf by:
01 November 2023
Mr M Tibrewala
Director
Company registration number 04289185 (England and Wales)
SIMPSONS (UK) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2021
17,681
486,355
6,180,342
6,684,378
Year ended 31 March 2022:
Profit for the year
-
-
1,005,474
1,005,474
Other comprehensive income:
Currency translation differences
-
-
(175,115)
(175,115)
Total comprehensive income
-
-
830,359
830,359
Balance at 31 March 2022
17,681
486,355
7,010,701
7,514,737
Year ended 31 March 2023:
Profit for the year
-
-
597,762
597,762
Other comprehensive income:
Currency translation differences
-
-
334,870
334,870
Total comprehensive income
-
-
932,632
932,632
Balance at 31 March 2023
17,681
486,355
7,943,333
8,447,369
SIMPSONS (UK) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2021
17,681
486,355
5,786,821
6,290,857
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
359,702
359,702
Balance at 31 March 2022
17,681
486,355
6,146,523
6,650,559
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
280,263
280,263
Balance at 31 March 2023
17,681
486,355
6,426,786
6,930,822
SIMPSONS (UK) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,983,481
569,606
Interest paid
(61,870)
(48,628)
Income taxes paid
(278,741)
(746,213)
Net cash inflow/(outflow) from operating activities
1,642,870
(225,235)
Investing activities
Purchase of tangible fixed assets
(65,848)
(33,935)
Proceeds from disposal of tangible fixed assets
369,995
34,196
Net cash generated from investing activities
304,147
261
Financing activities
Repayment of borrowings
(1,071,355)
(996,280)
Proceeds from new bank loans
-
4,271,546
Repayment of bank loans
(261,044)
(1,755,631)
Purchase of derivatives
-
(1,679)
Payment of finance leases obligations
(54,875)
(73,500)
Net cash (used in)/generated from financing activities
(1,387,274)
1,444,456
Net increase in cash and cash equivalents
559,743
1,219,482
Cash and cash equivalents at beginning of year
2,075,163
1,030,796
Effect of foreign exchange rates
334,870
(175,115)
Cash and cash equivalents at end of year
2,969,776
2,075,163
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
1
Accounting policies
Company information

Simpsons (UK) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 1, Beacon Business Park, Lodge Way, Caldicot, Monmouthshire, United Kingdom, NP26 5PX.

 

The group consists of Simpsons (UK) Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

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

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Simpsons (UK) Limited and all of its subsidiary Roha Polska s.p. z.o.o.

 

All financial statements are made up to 31 March 2023.

 

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

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

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.

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

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
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Freehold land and buildings
Not depreciated
Leasehold land and buildings
10% on cost
Plant and equipment
10% - 25% on cost
Fixtures and fittings
10% or 25% on cost
Computers
30% on cost
Motor vehicles
25% or 33% on cost

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.

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lies or the lease term, whichever is the shorter.

1.6
Fixed asset investments

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

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

1.7
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.

SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

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.

SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.10
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.

1.11
Derivatives

The group enters into foreign exchange contracts in order to manage its exposure to foreign exchange risk.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

 

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
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.

1.14
Retirement benefits

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

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.16
Foreign exchange

Foreign currency translation

The individual financial statements of each group entity are presented in the currency of the primary economic environment in which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position are presented in Sterling £.

 

Transactions and balances

In preparing the financial statements of the individual entities, transactions in currencies other than the functional currency of the individual entities (foreign currencies) are recognised at the spot rate at the dates of the transactions, or at an average rate where this rate approximates the actual rate at the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical costs in a foreign currency are not retranslated.

 

Exchange differences are recognised in the profit or loss in the period in which they arise. However, in the consolidated financial statements exchange differences arising on monetary items that form part of the net investment in a foreign operation are recognised in other comprehensive income and are not classified in profit or loss.

 

Translation of group companies

For the purpose of presenting consolidated financial statements, the assets and liabilities of the group's foreign operations are translated from their functional currency to Sterling £ using the closing exchange rate. Income and expenses are translated using the average rate for the period, unless the exchange rate fluctuated significantly during the period, in which case the exchange rates at the date of the transactions are used. Exchange differences arising on the translation of group companies are recognised in other comprehensive income and are not reclassified to profit or loss.

 

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stock valuation

At the year end, the group held stock of £6,336,458 (2022: £7,068,804). Stock is valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends.

SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
27,716,954
32,672,445
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
6,576,400
7,007,887
Europe
20,900,447
24,990,662
Asia & The Middle East
-
172,227
North America
20,398
112,376
South America
214,289
370,071
Africa
5,420
19,222
27,716,954
32,672,445
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(232,953)
1,416,492
Hedging instrument losses/(gains)
4,518
(1,679)
Depreciation of owned tangible fixed assets
101,590
97,293
Depreciation of tangible fixed assets held under finance leases
-
36,580
Profit on disposal of tangible fixed assets
(5,383)
(6,843)
Operating lease charges
165,072
263,489
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
12,600
11,000
Audit of the financial statements of the company's subsidiaries
5,819
10,093
18,419
21,093
For other services
Other assurance services
875
875
Taxation compliance services
1,800
1,800
Other taxation services
2,037
2,037
All other non-audit services
6,038
3,083
10,750
7,795
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Sales
12
8
6
4
Production
10
14
6
10
Purchasing
1
-
1
-
Administration
3
2
3
2
Total
26
24
16
16

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,058,533
1,001,696
401,208
363,086
Social security costs
132,994
122,581
48,481
52,520
Pension costs
55,473
55,546
47,299
47,142
1,247,000
1,179,823
496,988
462,748
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
170,400
150,000
Company pension contributions to defined contribution schemes
41,211
41,101
211,611
191,101

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022: 1).

8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
57,338
43,125
Interest on finance leases and hire purchase contracts
3,608
4,414
Other interest
924
1,089
Total finance costs
61,870
48,628
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
75,695
329,671
Adjustments in respect of prior periods
(77)
-
0
Total current tax
75,618
329,671
Deferred tax
Origination and reversal of timing differences
60,560
(74,138)
Changes in tax rates
-
0
3,744
Adjustment in respect of prior periods
87
-
0
Total deferred tax
60,647
(70,394)
Total tax charge
136,265
259,277

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
734,027
1,264,751
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
139,465
240,303
Tax effect of expenses that are not deductible in determining taxable profit
169
118
Adjustments in respect of prior years
10
-
0
Effect of change in corporation tax rate
(2,162)
66
Group relief
-
0
(52,484)
Permanent capital allowances in excess of depreciation
2,948
-
0
Depreciation on assets not qualifying for tax allowances
2,196
4,941
Effect of overseas tax rates
(72,983)
125,145
Other timing differences
66,622
(58,812)
Taxation charge
136,265
259,277
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
10
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 April 2022
366,539
209,135
807,571
193,418
5,105
118,958
1,700,726
Additions
-
0
-
0
65,848
-
0
-
0
-
0
65,848
Disposals
(391,822)
-
0
(10,000)
-
0
-
0
-
0
(401,822)
Exchange adjustments
25,283
-
0
895
-
0
352
1,765
28,295
At 31 March 2023
-
0
209,135
864,314
193,418
5,457
120,723
1,393,047
Depreciation and impairment
At 1 April 2022
-
0
201,896
667,629
181,320
1,914
71,627
1,124,386
Depreciation charged in the year
-
0
7,239
59,465
7,576
1,637
25,673
101,590
Eliminated in respect of disposals
-
0
-
0
(10,000)
-
0
-
0
-
0
(10,000)
Exchange adjustments
-
0
-
0
221
-
0
133
731
1,085
At 31 March 2023
-
0
209,135
717,315
188,896
3,684
98,031
1,217,061
Carrying amount
At 31 March 2023
-
0
-
0
146,999
4,522
1,773
22,692
175,986
At 31 March 2022
366,539
7,239
139,942
12,098
3,191
47,331
576,340
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
Company
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2022
209,135
794,605
193,418
93,375
1,290,533
Additions
-
0
65,848
-
0
-
0
65,848
Disposals
-
0
(10,000)
-
0
-
0
(10,000)
At 31 March 2023
209,135
850,453
193,418
93,375
1,346,381
Depreciation and impairment
At 1 April 2022
201,896
664,436
181,320
61,024
1,108,676
Depreciation charged in the year
7,239
56,840
7,576
21,534
93,189
Eliminated in respect of disposals
-
0
(10,000)
-
0
-
0
(10,000)
At 31 March 2023
209,135
711,276
188,896
82,558
1,191,865
Carrying amount
At 31 March 2023
-
0
139,177
4,522
10,817
154,516
At 31 March 2022
7,239
130,169
12,098
32,351
181,857

The carrying value of land and buildings comprises:

Group
Company
2023
2022
2023
2022
£
£
£
£
Short leasehold
-
0
7,239
-
0
7,239

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
-
0
100,148
-
0
100,148
Fixtures and fittings
-
0
8,404
-
0
8,404
-
108,552
-
108,552
11
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
1,984
1,984
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Fixed asset investments
(Continued)
- 26 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
1,984
Carrying amount
At 31 March 2023
1,984
At 31 March 2022
1,984
12
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Roha Polska s.p. z.o.o.
Poland
Buying and selling of industrial dyes
Ordinary
99.50
13
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
-
1,679
-
1,679
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
2,839
-
2,839
-
14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
6,336,458
7,068,804
1,270,089
1,710,968
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,245,702
7,474,039
1,179,094
1,876,466
Corporation tax recoverable
287,723
51,964
-
0
-
0
Amounts owed by group undertakings
1,108,489
876,684
3,902,128
3,764,251
Derivative financial instruments
-
1,679
-
1,679
Other debtors
318,063
707,270
70,700
684,976
Prepayments and accrued income
56,589
-
-
0
-
0
7,016,566
9,111,636
5,151,922
6,327,372
Amounts falling due after more than one year:
Deferred tax asset (note 20)
66,924
176,400
5,699
-
0
Total debtors
7,083,490
9,288,036
5,157,621
6,327,372

Derivative financial instruments relate to forward foreign currency contracts. The company enters into forward foreign currency contracts to mitigate the exchange rate risk for foreign currency payables. At 31 March 2023 the outstanding contracts all mature within 3 months (2022: 3 months) of the year end.

 

The forward currency contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key inputs used in valuing the derivatives are the forward exchange rates.

16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
4,203,262
2,944,445
-
0
192,760
Obligations under finance leases
18
-
0
54,875
-
0
54,875
Other borrowings
19
136,219
1,207,574
136,219
1,207,574
Trade creditors
2,472,302
3,977,116
892,186
930,782
Amounts owed to group undertakings
601,234
62,195
191,750
157,297
Corporation tax payable
75,695
37,566
75,695
37,566
Other taxation and social security
54,041
281,137
26,360
277,104
Derivative financial instruments
2,839
-
0
2,839
-
0
Other creditors
220,375
183,494
172,736
168,551
Accruals and deferred income
332,439
1,151,086
137,020
114,570
8,098,406
9,899,488
1,634,805
3,141,079
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
16
Creditors: amounts falling due within one year
(Continued)
- 28 -

Other borrowings include £136,219 (2022: £663,983) related to invoice finance facilities which are secured against trade debtors.

 

Derivative financial instruments relate to forward foreign currency contracts. The company enters into forward foreign currency contracts to mitigate the exchange rate risk for foreign currency payables. At 31 March 2023 the outstanding contracts all mature within 3 months (2022: 3 months) of the year end.

 

The forward currency contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key inputs used in valuing the derivatives are the forward exchange rates.

17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
-
0
1,519,861
-
0
-
0
18
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
-
0
54,875
-
0
54,875

Finance lease payments represent rentals payable by the group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Hire purchase liabilities are secured on the assets to which they relate.

 

The hire purchase leases were paid off during the year.

19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
4,203,262
4,464,306
-
0
192,760
Other borrowings
136,219
1,207,574
136,219
1,207,574
4,339,481
5,671,880
136,219
1,400,334
Payable within one year
4,339,481
4,152,019
136,219
1,400,334
Payable after one year
-
0
1,519,861
-
0
-
0
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
19
Loans and overdrafts
(Continued)
- 29 -

Bank loans are secured by fixed and floating charges over all of the assets of the parent company dated 06 August 2004. HSBC UK Bank PLC holds a general letter of pledge dated 21 April 2011 and a contract monies charge dated 24 August 2010.

 

There is also a composite company multilateral guarantee in place with HSBC UK Bank PLC given by Roha UK Limited and Simpsons (UK) Limited, refer to note 23.

20
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
-
196
4,627
-
Retirement benefit obligations
-
(340)
362
-
Other timing differences
19,935
73,981
61,225
176,400
Derivatives
-
420
710
-
19,935
74,257
66,924
176,400
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
-
196
4,627
-
Retirement benefit obligations
-
(340)
362
-
Derivatives
-
420
710
-
-
276
5,699
-
Group
Company
2023
2023
Movements in the year:
£
£
Liability/(Asset) at 1 April 2022
(102,143)
276
Charge/(credit) to profit or loss
60,647
(5,975)
Credit to other comprehensive income
(5,493)
-
Asset at 31 March 2023
(46,989)
(5,699)
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
55,473
55,546

The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

At the year end the group had outstanding pension contributions of £4,088 (2022: £3,791), this amount being included within creditors due within one year.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
17,681
17,681
17,681
17,681

Only one class of shares, therefore all shares rank pari passu.

23
Financial commitments, guarantees and contingent liabilities

On 2 October 2008 Simpsons (UK) Limited and Roha UK Limited entered into a composite company unlimited multilateral guarantee with HSBC Bank PLC.

 

The effect of this guarantee is that on demand by the bank, the companies will be solely or jointly liable to pay or discharge to the bank, all monies or liabilities which are due, owing or incurred by either company to the bank.

 

At 31 March 2023 the total owed to HSBC Bank PLC in respect of bank loans and overdrafts including invoice finance facilities by Simpsons (UK) Limited was £136,219 (2022: £1,400,334).

 

There is a guarantee in place dated 16 January 2015 in favour of HSBC for £100,000.

 

In addition, Roha Polska s.p. z.o.o. owed HSBC Bank PLC, in respect of bank loans and overdrafts, £2,957,368 (2022: £4,271,546).

SIMPSONS (UK) 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
110,007
112,980
100,000
100,405
Between two and five years
325,000
400,000
325,000
400,000
In over five years
-
25,000
-
25,000
435,007
537,980
425,000
525,405
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 32 -
25
Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel, who are also directors, is as follows:

            

2023
2022
£
£
Aggregate compensation
171,611
191,101
Transactions with related parties
Transactions during the current and previous years and balance at 31 March 2023 and 2022 with the parent company were as follows:
2023
2022
£
£
Sales to parent company
-
-
Purchases from parent company
(1,708,570)
(1,058,741)
Year end balance due (to) / from parent company
(532,501)
(28,166)
Transactions during the current and previous years and balance at 31 March 2023 and 2022 with other group companies were as follows:
2023
2022
£
£
Sales to other group companies
590,329
1,274,141
Purchases from other group companies
(553,376)
(295,611)
Total year end balances due from other group companies
1,107,759
875,954
Total year end balances due to other group companies
(68,003)
(33,113)
In addition, at the year end, the group owed £192,790 (2022: £172,275) to related parties under common control.
Guarantees

On 2 October 2008 Simpsons (UK) Limited and Roha UK Limited entered into a composite company unlimited multilateral guarantee with HSBC Bank PLC.

 

The effect of this guarantee is that on demand by the bank, the companies will be solely or jointly liable to pay or discharge to the bank, all monies or liabilities which are due, owing or incurred by either company to the bank.

 

At 31 March 2023 the total owed to HSBC Bank PLC in respect of bank loans and overdrafts including invoice finance facilities by Simpsons (UK) Limited was £136,219 (2022: £1,400,334).

 

There is a guarantee in place dated 16 January 2015 in favour of HSBC for £100,000.

 

In addition, Roha Polska s.p. z.o.o. owed HSBC Bank PLC, in respect of bank loans and overdrafts, £2,957,368 (2022: £4,271,546).

26
Controlling party

The group is ultimately controlled by Roha Dyechem Private Limited, whose registered office is JJT House Plot Number A/44-45, Road Number 2, M.I.D.C., Andheri (E), Mumbai - 400 093, India.

 

Roha Dyechem Private Limited is the parent of the smallest and largest group of which the group is a member.

SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 33 -
27
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
597,762
1,005,474
Adjustments for:
Taxation charged
136,265
259,277
Finance costs
61,870
48,628
Gain on disposal of tangible fixed assets
(5,383)
(6,843)
Fair value loss on foreign exchange contracts
4,518
-
0
Depreciation and impairment of tangible fixed assets
101,590
133,873
Movements in working capital:
Decrease in stocks
732,346
205,691
Decrease/(increase) in debtors
2,329,150
(208,270)
Decrease in creditors
(1,974,637)
(868,224)
Cash generated from operations
1,983,481
569,606
28
Analysis of changes in net debt - group
1 April 2022
Cash flows
Exchange rate movements
31 March 2023
£
£
£
£
Cash at bank and in hand
2,075,163
559,743
334,870
2,969,776
Borrowings excluding overdrafts
(5,671,880)
1,332,399
-
(4,339,481)
Obligations under finance leases
(54,875)
54,875
-
-
(3,651,592)
1,947,017
334,870
(1,369,705)
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