Company registration number 04538102 (England and Wales)
ASHLEY ANDERSON LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
ASHLEY ANDERSON LIMITED
COMPANY INFORMATION
Directors
J M Rolph
P J Williamson
G C Whitehouse
(Appointed 23 August 2023)
Company number
04538102
Registered office
Browne Jacobson LLP (Cs)
Mowbray House
Castle Meadow Road
Nottingham
NG2 1BJ
Auditor
Morgan Berkeley Limited
Westgate Chambers
8a Elm Park Road
Pinner
Middlesex
HA5 3LA
Business address
Unit 1A/1B Hulbert Drive
Grazebrook Park
Peartree Lane
Dudley
DY2 0XW
Bankers
Barclays Bank Plc
One Snowhill, Snowhill Queensway
Birmingham
B4 6GN
ASHLEY ANDERSON LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
ASHLEY ANDERSON LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 1 -
The directors present the strategic report for the year ended 28 February 2023.
Review of the business
The company continues to be that of retailing electrically driven adjustable beds, riser chairs, and bathlifts, as well as the retail and installation of mobility showers and bathrooms.
Results and performance
The results of the company for the year, as set out on page 8, show a profit on ordinary activities before tax of £1.98m (2022: £2.08m).
Business review
The mobility market is highly competitive, particularly in the retail sector where the business is focused. Many companies offer similar products, giving rise to aggressive pricing structures. The group continues to differentiate itself by focusing on be-spoke solutions, additional product features and benefits, short lead times and outstanding customer service as demonstrated by high Trust pilot scores across all divisions. The Group continues to invest in new product development, marketing and supply chain optimisation to ensure it remains competitive in the market.
Strategy
The company has recently developed a new strategic plan with customer service at the core, key initiatives include Sales growth, Marketing, Operational Improvements, Strategic Procurement and Employee engagement.
The company's success is dependent on the proper selection of pricing policies and ongoing management and sales team. In this market, the group has continuously strived to consolidate its position by covering different categories of products of different specifications so as to capture customers at various levels of affordability. The Group will continue to consolidate its position and concentrate its efforts on achieving maximum growth in its existing market segments. Customer service remains a top priority.
Key performance indicators
The directors monitor the progress of the Group by reference to the following KPI's:
2023 2022
Turnover £14.78m £13.96m
Operating Profit £1.98m £2.08m
Profit on ordinary activities before tax £1.98m £2.08m
G C Whitehouse
Director
30 October 2023
ASHLEY ANDERSON LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -
The directors present their annual report and financial statements for the year ended 28 February 2023.
Principal activities
The principal activity of the company continued to be that of manufacture and sale of mobility chairs and beds, and sale of bath lifts.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid to Kingswood Corporation Limited amounting to £2,000,000. 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:
J M Rolph
P J Williamson
S A Thomas
(Appointed 6 April 2022 and resigned 5 July 2023)
G C Whitehouse
(Appointed 23 August 2023)
Auditor
The auditor, Morgan Berkeley Limited, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
(a) so far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware, and
(b) they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
ASHLEY ANDERSON LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
G C Whitehouse
Director
30 October 2023
ASHLEY ANDERSON LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ASHLEY ANDERSON LIMITED
- 4 -
Opinion
We have audited the financial statements of Ashley Anderson Limited (the 'company') for the year ended 28 February 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 28 February 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
ASHLEY ANDERSON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ASHLEY ANDERSON LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. We also considered laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.
We evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance.
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:
Discussing with the directors and management their policies and procedures regarding compliance with laws and regulations;
Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.
ASHLEY ANDERSON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ASHLEY ANDERSON LIMITED
- 6 -
Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Pierre Yat Keung Leong
Senior Statutory Auditor
For and on behalf of Morgan Berkeley Limited
30 October 2023
Chartered Certified Accountants
Statutory Auditor
Westgate Chambers
8a Elm Park Road
Pinner
Middlesex
HA5 3LA
ASHLEY ANDERSON LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
14,784,927
13,962,098
Cost of sales
(8,206,244)
(8,017,418)
Gross profit
6,578,683
5,944,680
Distribution costs
(3,113,020)
(2,387,113)
Administrative expenses
(1,483,402)
(1,496,016)
Other operating income
25,435
Operating profit
4
1,982,261
2,086,986
Other interest receivable and similar income
6
6,031
242
Interest payable and similar expenses
7
(10)
(198)
Profit before taxation
1,988,282
2,087,030
Tax on profit
8
(280,446)
(398,244)
Profit for the financial year
1,707,836
1,688,786
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ASHLEY ANDERSON LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 8 -
2023
2022
£
£
Profit for the year
1,707,836
1,688,786
Other comprehensive income
-
-
Total comprehensive income for the year
1,707,836
1,688,786
ASHLEY ANDERSON LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2023
28 February 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
667,897
292,753
Current assets
Stocks
11
1,394,784
1,062,082
Debtors
12
1,284,626
2,942,535
Cash at bank and in hand
1,914,803
972,249
4,594,213
4,976,866
Creditors: amounts falling due within one year
13
(1,509,512)
(1,317,430)
Net current assets
3,084,701
3,659,436
Total assets less current liabilities
3,752,598
3,952,189
Provisions for liabilities
Deferred tax liability
14
139,045
46,472
(139,045)
(46,472)
Net assets
3,613,553
3,905,717
Capital and reserves
Called up share capital
16
100
100
Capital redemption reserve
17
60,000
60,000
Profit and loss reserves
3,553,453
3,845,617
Total equity
3,613,553
3,905,717
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 30 October 2023 and are signed on its behalf by:
G C Whitehouse
Director
Company registration number 04538102 (England and Wales)
ASHLEY ANDERSON LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2021
60,100
2,285,083
2,345,183
Year ended 28 February 2022:
Profit and total comprehensive income
-
-
1,688,786
1,688,786
Dividends
9
-
-
(68,252)
(68,252)
Redemption of shares
16
(60,000)
60,000
Transfers
-
-
(60,000)
(60,000)
Balance at 28 February 2022
100
60,000
3,845,617
3,905,717
Year ended 28 February 2023:
Profit and total comprehensive income
-
-
1,707,836
1,707,836
Dividends
9
-
-
(2,000,000)
(2,000,000)
Balance at 28 February 2023
100
60,000
3,553,453
3,613,553
ASHLEY ANDERSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 11 -
1
Accounting policies
Company information
Ashley Anderson Limited is a private company limited by shares incorporated in England and Wales. The registered office is Browne Jacobson LLP (Cs), Mowbray House, Castle Meadow Road, Nottingham, NG2 1BJ.
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 £.
This 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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Kingswood Mobility Group Limited. These consolidated financial statements are available from the Companies House.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
1.3
Turnover
Turnover represents amounts receivable for mobility products sold net of VAT and trade discounts and is recognised upon delivery or upon completion of installation.
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.
1.4
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.
ASHLEY ANDERSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 12 -
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:
Land and buildings Leasehold
10% straight line p.a.
Plant and machinery
10-25% straight line p.a.
Fixtures, fittings & equipment
10-25% straight line p.a.
Motor vehicles
25% straight line p.a.
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 credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.6
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.
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.
1.7
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.
1.8
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
ASHLEY ANDERSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 13 -
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 company 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 company 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.
ASHLEY ANDERSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 14 -
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 company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company 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 company.
1.10
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 company’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 taxation is provided at appropriate rates on all timing differences using the liability method only to the extent that, in the opinion of the directors, there is a reasonable probability that a liability or asset will crystallise in the foreseeable future.
1.11
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.
1.12
Retirement benefits
The company operates a defined contribution scheme for the benefit of some of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
ASHLEY ANDERSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 15 -
1.13
Leases
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.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
14,784,927
13,962,098
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
14,784,927
13,962,098
ASHLEY ANDERSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
3
Turnover and other revenue
(Continued)
- 16 -
2023
2022
£
£
Other revenue
Interest income
6,031
242
Grants received
-
3,329
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(3,329)
Fees payable to the company's auditor for the audit of the company's financial statements
9,750
7,800
Depreciation of owned tangible fixed assets
63,361
41,472
Loss/(profit) on disposal of tangible fixed assets
4,802
(2,083)
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was 86 (2022 - 77).
2023
2022
Number
Number
Management
1
1
Sales
15
14
Distribution and warehouse
-
8
Manufacturing
66
49
Administration and accounts
4
5
Total
86
77
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,024,383
1,811,928
Social security costs
182,214
150,098
Pension costs
41,135
34,060
2,247,732
1,996,086
ASHLEY ANDERSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 17 -
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
6,031
242
Disclosed on the profit and loss account as follows:
Other interest receivable and similar income
6,031
242
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
-
198
Other interest on financial liabilities
10
10
198
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
187,873
373,487
Deferred tax
Origination and reversal of timing differences
92,573
24,384
Adjustment in respect of prior periods
373
Total deferred tax
92,573
24,757
Total tax charge
280,446
398,244
ASHLEY ANDERSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
8
Taxation
(Continued)
- 18 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
1,988,282
2,087,030
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
377,774
396,536
Gains not taxable
912
Group relief
(120,241)
Permanent capital allowances in excess of depreciation
(70,572)
(23,049)
Under/(over) provided in prior years
373
Deferred tax movement
92,573
24,384
Taxation charge for the year
280,446
398,244
9
Dividends
2023
2022
£
£
Final paid
2,000,000
68,252
10
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 March 2022
110,871
422,387
28,685
44,945
606,888
Additions
379,838
63,469
443,307
Disposals
(7,700)
(7,700)
At 28 February 2023
490,709
478,156
28,685
44,945
1,042,495
Depreciation and impairment
At 1 March 2022
82,689
193,658
21,501
16,287
314,135
Depreciation charged in the year
6,032
45,190
2,771
9,368
63,361
Eliminated in respect of disposals
(2,898)
(2,898)
At 28 February 2023
88,721
235,950
24,272
25,655
374,598
Carrying amount
At 28 February 2023
401,988
242,206
4,413
19,290
667,897
At 28 February 2022
28,182
228,729
7,184
28,658
292,753
ASHLEY ANDERSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 19 -
11
Stocks
2023
2022
£
£
Finished goods and goods for resale
1,394,784
1,062,082
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
267,337
80,164
Corporation tax recoverable
41,399
Amounts owed by group undertakings
740,889
2,477,671
Other debtors
195,185
102,249
Prepayments and accrued income
39,816
282,451
1,284,626
2,942,535
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,104,332
891,681
Amounts owed to group undertakings
23,420
43,132
Corporation tax
162,207
Other taxation and social security
41,619
37,793
Other creditors
9,294
7,962
Accruals and deferred income
330,847
174,655
1,509,512
1,317,430
14
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated Capital Allowances
139,045
46,472
ASHLEY ANDERSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
14
Deferred taxation
(Continued)
- 20 -
2023
Movements in the year:
£
Liability at 1 March 2022
46,472
Charge to profit or loss
92,573
Liability at 28 February 2023
139,045
The deferred tax liabilities set out above relates to accelerated capital allowances.
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
41,135
34,060
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
17
Capital redemption reserve
2023
2022
£
£
At the beginning of the year
60,000
Transfers
-
60,000
At the end of the year
60,000
60,000
ASHLEY ANDERSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 21 -
18
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
137,421
160,275
Between two and five years
59,804
631,454
In over five years
542,371
197,225
1,334,100
19
Financial commitments, guarantees and contingent liabilities
Cross guarantee and debenture is provided by the company for the borrowings of its parent company, Kingswood Corporation Group Limited, and all of its subsidiaries.
The security is a fixed charge over all fixed assets, both tangible and intangible, and a floating charge over all other assets.
ASHLEY ANDERSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 22 -
20
Related party transactions
These transactions were with parties which were related in the previous year until 30 September 2021.
A company in which M J Harrison is a director and a shareholder.
Goods and services sold was £nil (2022: £86,075).
Amounts due from the company was £nil (2022: £16,489) which is included within debtors.
A company in which M J Harrison is a director and a shareholder, N Adcock is a shareholder.
Goods purchased amounted to £nil (2022: £227,741).
Goods sold and intercompany recharges was £nil(2022: £7,567).
21
Ultimate controlling party
The parent company of Ashley Anderson Limited is Kingswood Corporation Limited, a company registered in England and Wales, with its registered office situated at Browne Jacobson Llp (Cs) Mowbray House, Castle Meadow Road, Nottingham, England, NG2 1BJ.
The results of Ashley Anderson Limited are consolidated in its ultimate parent company, Kingswood Mobility Group Limited, which prepares consolidated financial statements. Copies of the consolidated financial statements can be obtained from the Companies House.
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