REGISTERED NUMBER: |
TRI-WALL SWANSEA LIMITED |
REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
REGISTERED NUMBER: |
TRI-WALL SWANSEA LIMITED |
REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Page |
Company Information | 1 |
Report of the Directors | 2 | to | 3 |
Report of the Independent Auditors | 4 | to | 7 |
Income Statement | 8 |
Other Comprehensive Income | 9 |
Statement of Financial Position | 10 | to | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 | to | 27 |
TRI-WALL SWANSEA LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditor |
Swansea, United Kingdom |
AUDITORS OFFICE: |
Swansea Enterprise Park |
Swansea |
SA7 9FG |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The directors present their report with the financial statements of the company for the year ended 31 December 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the manufacture and sale of corrugated cases, heavy duty cases, timber products and a wide range of packaging products. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Report of the Directors 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), including Financial Reporting Standard 101 'Reduced Disclosure Framework'. 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
On 1 December 2022 as a result of a merger, Gerald Thomas resigned as auditors in accordance with Section 516 of the Companies Act 2006 and re-engaged its services as MHA. |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TRI-WALL SWANSEA LIMITED |
Opinion |
We have audited the financial statements of Tri-Wall Swansea Limited (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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 101 'Reduced Disclosure Framework' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
Other matters |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Directors has been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TRI-WALL SWANSEA LIMITED |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit; or |
- | the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TRI-WALL SWANSEA LIMITED |
Auditors' 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 a Report of the Auditors 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: |
Detecting irregularities |
The objectives of our audit in relation to fraud are as follows: |
- to identify and assess the risks of material misstatement of the financial statements due to fraud; |
- to obtain sufficient appropriate audit evidence regarding the assessed risks of materials misstatement due to fraud, through designing and implementing appropriate responses; |
- and to respond appropriately to fraud or suspected fraud identified during the audit. |
However, the primary responsibility for the prevention and detection of fraud rests with the directors. |
Auditor's approach to assessing the risks of material misstatement due to irregularities, including fraud |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (FRS 101 and the Companies Act 2006) and the relevant tax compliance regulations in the UK. |
We assessed the risks of material misstatement in respect of fraud and considered the extent to which non-compliance with laws and regulations might have a material effect on the financial statements. |
Audit procedures designed to respond to the risks of non-compliance with laws and regulations |
Based on the results of our risk assessment, we designed our audit procedures to identify non-compliance with such laws and regulations identified above. We made enquiries of senior management to understand how the company is complying with those frameworks. Audit procedures performed by the engagement team also included a review of the financial statements disclosures to underlying supporting documentation. |
Audit procedures designed to respond to the risks of fraud |
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by means of developing an understanding the company's controls and discussing with management the perceived risks and garnering where they considered there was susceptibility to fraud. |
Based on the results of our risk assessment we designed our audit procedures to identify and to address material misstatements in relation to fraud. |
As well as adopting an attitude of professional scepticism, we have obtained information for use in identifying the risk of fraud when performing risk assessment procedures and performed the following procedures in light of the risk of fraud: |
- Discussion amongst the engagement team regarding the susceptibility of the client to fraud; |
- Enquiring of management how they: assess the risk of fraud; identify and respond to the risks of fraud; |
- Enquiring of management and directors whether they have any knowledge of actual or suspected fraud; |
- Remaining alert to inconsistent or contradictory information and obtaining evidence to support information provided. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TRI-WALL SWANSEA LIMITED |
Management override of controls |
We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach, The audit engagement team performed journal entry testing using a risk-based approach and evaluated whether there was evidence of bias, with a focus on any journals indicating large or unusual transactions, non-routine journals and journals processed for before and after the accounting reference date. |
Considerations around likelihood of detection |
However owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material mis-statements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants and Statutory Auditor |
Swansea, United Kingdom |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
1,512,664 | 1,527,979 |
662,441 | 381,964 |
Other operating income | 3 |
OPERATING PROFIT |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION | 6 |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Owned |
Tangible assets | 8 | 1,718,897 | 1,839,799 |
Right-of-use |
Tangible assets | 8, 13 | 372,066 | 302,647 |
CURRENT ASSETS |
Stocks |
Debtors | 9 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
11 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 15 | ( |
) | ( |
) |
ACCRUALS AND DEFERRED INCOME | 16 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Share premium |
Capital redemption reserve |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
STATEMENT OF FINANCIAL POSITION - continued |
31 DECEMBER 2022 |
The financial statements were approved by the Board of Directors and authorised for issue on |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2021 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 December 2021 | 948,034 |
Changes in equity |
Total comprehensive income | - | - | - |
Balance at 31 December 2022 |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | COMPANY INFORMATION |
Tri-Wall Swansea Limited is a limited company, limited by shares, and incorporated in England and Wales. The principal place of business is: |
2 Pleasant Road |
Gorseinon |
Swansea |
SA4 9WH |
The company's principal activity is the manufacture and resale of corrugated cases, heavy duty cases, timber products and a wide range of packaging products. |
The presentation currency of the financial statements is pound Sterling (£). |
Monetary amounts in these financial statements are rounded to the nearest £. |
2. | ACCOUNTING POLICIES |
Basis of preparation |
Going concern |
The company has continued to generate net profits and has both net current assets and net assets at the statement of financial position date. |
The directors are pleased with the company's performance during 2022 given the continued economic uncertainty. |
The company is dependent upon the continued support of its parent company, which has adequate funding to meet its obligations from working capital through drawing on the HSBC revolving credit facility. |
At the date of approval of these financial statements the directors have no reason to believe that this support will not continue for the foreseeable future. |
At the date of signing the financial statements, the directors have assessed the risks and uncertainties facing the company. After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors believe thati the company will continue to operate as a viable going concern for the foreseeable future. |
Accordingly, they continue to adopt the going concern basis in preparing the financial statements. |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 101 "Reduced Disclosure Framework": |
• | the requirements of IFRS 7 Financial Instruments: Disclosures; |
• | the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement; |
• | the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases; |
the requirements of paragraph 58 of IFRS 16; |
• | the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers; |
• | the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative information in respect of: |
- | paragraph 79(a)(iv) of IAS 1; and |
- | paragraph 73(e) of IAS 16 Property, Plant and Equipment; |
• | the requirements of paragraphs 10(d), 10)(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D and 111 of IAS 1 Presentation of Financial Statements; |
• | the requirements of paragraphs 134 to 136 of IAS 1 Presentation of Financial Statements; |
• | the requirements of IAS 7 Statement of Cash Flows; |
• | the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors; |
• | the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures; |
• | the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group; |
• | the requirements of paragraphs 134(d) to 134(f) and 135(c) to 135(e) of IAS 36 Impairments of Assets. |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors which are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision only effects that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The following are the critical judgements that the directors have made in the process of applying the company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements. |
Impairment of assets |
Assets are assessed for indicators of impairment at each statement of financial position date. If there is objective evidence of impairment, an impairment loss is recognised in the income statement. |
Stock provisions |
Stock holdings are assessed for indicators of obsolescence at each statement of financial position date. If there is objective evidence of obsolescence, a provision is recognised in the income statement. |
Provisions and contingencies |
Provisions are recognised when the company has a present obligation as a result of a past event and a reliable estimate can be made of a probable adverse outcome. Otherwise, material contingent liabilities are disclosed unless a transfer of economic benefits is considered remote. Contingent assets are only disclosed if an inflow of economic benefits is probable. |
Incremental borrowing rate |
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated to discount future lease payments to measure the present value of the lease liability at the lease commencement date. Such a rate is based on what the company estimates it would have to pay a third party to borrow the funds necessary to obtain an asset of a similar value to the right-of-use asset, with similar terms, security and economic environment. |
Turnover and revenue recognition |
Turnover is the amount derived from ordinary activities and stated after trade discounts, other sales taxes and VAT. Revenue is recognised on despatch of goods to the customer. |
All turnover is generated from the sale of goods and relates to the one principal activity of the company. |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold land and buildings | - |
Long leasehold land and buildings | - |
Plant and machinery | - |
Fixtures and fittings | - |
Tangible fixed assets are carried at cost less depreciation and impairment. Assets acquired but not brought into use at the statement of financial position date are not depreciated. |
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. |
Right-of-use assets |
The company transitioned to IFRS 16 on 1 January 2019, applying the modified retrospective approach. The right-of-use assets are recognised based on the present value of the remaining lease payments. The company has taken exemption from recognition in relation to low value leases, and lease where the term remaining was less than twelve months at the date of transition. |
Where ownership of the right-of-use asset transfers to the lessee at the end of the lease term, the right-of-use asset is depreciated over the asset’s remaining useful life. If ownership of the right-of-use asset does not transfer to the lessee at the end of the lease term, depreciation is charged over the shorter of the useful life of the right-of-use asset and the lease term. |
Right-of-use assets have been separately disclosed per note 13. |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. |
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. |
Financial assets and liabilities |
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a finance transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Debt instruments that are classified as payable or receivable within one year are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment. |
Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the company, despite having retained some significant risks and rewards of ownership, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer. |
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires. |
Stocks |
Stocks are valued at the lower of cost and estimated selling price, after making due allowance for obsolete or slow moving items. Costs which for finished goods includes direct production costs and an appropriate allocation of production overheads, are based on the method most appropriate to the type of stock, but usually on a first in first out basis. |
Dividends |
Dividends are recognised through equity on the earlier of their approval by the company's shareholders or their payment. |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Leases |
Leases are recognised as finance leases. The lease liability is initially recognised at the present value of the lease payments which have not yet been made and subsequently measured under the amortised cost method. The initial cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, lease payments made prior to the lease commencement date, initial direct costs and the estimated costs of removing or dismantling the underlying asset per the conditions of the contract. |
Employee benefit costs |
The company operates two defined contribution pension schemes. Contributions payable to the pension schemes are charges to the income statement in the period to which they relate. |
Government grants |
Grants are credited to deferred income. Grants towards capital expenditure are released to the income statement over the useful life of the assets. Grants towards revenue expenditure are released to the income statement as the related expenditure is incurred. |
Borrowing costs |
Borrowing costs that are directly attributable to the acquisition, construction or production of an asset form part of the cost of that asset. Other borrowing costs are recognised as an expense in the income statement. |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
3. | OTHER OPERATING INCOME |
2022 | 2021 |
£ | £ |
Other income | 797 | - |
Research and development tax |
credit receipt | - | 14,200 |
Government grants |
4. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries | 1,358,497 | 1,334,510 |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2022 | 2021 |
Production | 28 | 22 |
Distribution | 16 | 6 |
Administration | 6 | 16 |
2022 | 2021 |
£ | £ |
Directors' remuneration |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Bank loan interest |
Related party loan interest | 26,405 | 29,960 |
Leasing interest | 14,261 | 11,764 |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
6. | PROFIT BEFORE TAXATION |
The profit before taxation is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Cost of inventories recognised as an expense | 4,283,233 | 3,555.648 |
Depreciation - owned assets | 133,627 | 134,198 |
Depreciation - leased assets | 61,143 | 63,350 |
Government grants | (7,558 | ) | (7,558 | ) |
Exchange rate losses | 3,375 | 5,522 |
Auditor's remuneration - audit services | 9,000 | 8,225 |
Auditor's remuneration - non audit services - taxation | 2,865 | 2,460 |
Auditor's remuneration - non audit services - other | 14,750 | 1,450 |
7. | TAXATION |
Analysis of tax expense |
2022 | 2021 |
£ | £ |
Current tax: |
Tax |
Corporation tax - prior year | 16,663 | 10,865 |
Total current tax | 150,577 | 87,466 |
Deferred tax |
Total tax expense in income statement |
Factors affecting the tax expense |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2022 | 2021 |
£ | £ |
Profit before income tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
116,638 |
64,529 |
Effects of: |
Income exempt from taxation | - | (2,698 | ) |
Other differences | 12,710 | 27,012 |
Depreciation on non qualifying assets | 19,577 | 19,997 |
Expenses not deductible for tax purposes | 491 | 28 |
Capital allowances superdeduction | - | (87 | ) |
Capital grant release | 1,436 | 1,436 |
Tax expense | 150,852 | 110,217 |
The deferred tax expense relates to accelerated capital allowances. |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
8. | TANGIBLE FIXED ASSETS |
Long |
Freehold | leasehold |
land and | land and | Long life |
buildings | buildings | plant |
£ | £ | £ |
COST |
At 1 January 2022 | 227,658 | 782,024 | 1,674,908 |
Additions | - | - | - |
Disposals | - | - | - |
At 31 December 2022 | 227,658 | 782,024 | 1,674,908 |
DEPRECIATION |
At 1 January 2022 | 8,432 | 107,171 | 1,054,406 |
Charge for year | 1,463 | 36,783 | 71,084 |
Eliminated on disposal | - | - | - |
At 31 December 2022 | 9,895 | 143,954 | 1,125,490 |
NET BOOK VALUE |
At 31 December 2022 | 217,763 | 638,070 | 549,418 |
At 31 December 2021 | 219,226 | 674,853 | 620,502 |
Fixtures |
Plant and | and | Right-of-use |
machinery | fittings | assets | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2022 | 435,911 | 280,587 | 419,950 | 3,821,038 |
Additions | 3,631 | 9,094 | 130,562 | 143,287 |
Disposals | - | - | (37,856 | ) | (37,856 | ) |
At 31 December 2022 | 439,542 | 289,681 | 512,656 | 3,926,469 |
DEPRECIATION |
At 1 January 2022 | 199,272 | 192,008 | 117,303 | 1,678,592 |
Charge for year | 16,890 | 7,407 | 61,143 | 194,770 |
Eliminated on disposal | - | - | (37,856 | ) | (37,856 | ) |
At 31 December 2022 | 216,162 | 199,415 | 140,590 | 1,835,506 |
NET BOOK VALUE |
At 31 December 2022 | 223,380 | 90,266 | 372,066 | 2,090,963 |
At 31 December 2021 | 236,639 | 88,579 | 302,647 | 2,142,446 |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade debtors |
Other debtors |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans and overdrafts (see note 12) |
Leases (see note 12) |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security and other taxes |
VAT | 109,752 | 80,329 |
Other creditors |
Accrued expenses |
Deferred government grants |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans (see note 12) |
Leases (see note 12) |
Amounts owed to group undertakings |
12. | FINANCIAL LIABILITIES - BORROWINGS |
2022 | 2021 |
£ | £ |
Current: |
Bank loans |
Leases (see note 13) | 53,083 | 43,800 |
Non-current: |
Bank loans - 1-2 years |
Leases (see note 13) | 326,425 | 265,299 |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
12. | FINANCIAL LIABILITIES - BORROWINGS - continued |
Terms and debt repayment schedule |
1 year or | More than |
less | 2-5 years | 5 years | Totals |
£ | £ | £ | £ |
Bank loans | 183,172 | - | 323,219 |
Leases | 53,083 | 128,893 | 197,532 | 379,508 |
312,065 | 197,532 | 702,727 |
13. | LEASING |
Right-of-use assets |
Tangible fixed assets |
2022 | 2021 |
£ | £ |
COST |
At 1 January 2022 | 419,950 | 426,925 |
Additions | 130,562 | 71,666 |
Disposals | (37,856 | ) | (78,641 | ) |
512,656 | 419,950 |
DEPRECIATION |
At 1 January 2022 | 117,303 | 132,594 |
Charge for year | 61,143 | 63,350 |
Eliminated on disposal | (37,856 | ) | (78,641 | ) |
140,590 | 117,303 |
NET BOOK VALUE | 372,066 | 302,647 |
The net book value of right-of-use assets includes the following: |
2022 | 2021 |
£ | £ |
Plant and machinery | 108,094 | 86,184 |
Motor vehicles | 72,351 | 22,520 |
Warehouse and office building | 191,621 | 193,943 |
372,066 | 302,647 |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
13. | LEASING - continued |
Lease liabilities |
Minimum lease payments fall due as follows: |
2022 | 2021 |
£ | £ |
Gross obligations repayable: |
Within one year | 67,623 | 54,441 |
Between one and five years | 167,936 | 100,063 |
In more than five years | 721,875 | 729,375 |
957,434 | 883,879 |
Finance charges repayable: |
Within one year | 14,540 | 10,641 |
Between one and five years | 39,043 | 32,509 |
In more than five years | 524,343 | 531,630 |
577,926 | 574,780 |
Net obligations repayable: |
Within one year | 53,083 | 43,800 |
Between one and five years | 128,893 | 67,554 |
In more than five years | 197,532 | 197,745 |
379,508 | 309,099 |
14. | SECURED DEBTS |
The following secured debts are included within creditors: |
2022 | 2021 |
£ | £ |
Bank loans |
Leases | 379,508 | 309,099 |
702,727 | 766,693 |
The bank loan is secured against the company's freehold and leasehold properties. There is also an unlimited multilateral guarantee given by Tri-Wall UK Limited. |
The leases are secured against the assets to which they relate. |
15. | PROVISIONS FOR LIABILITIES |
2022 | 2021 |
£ | £ |
Deferred tax |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
15. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 January 2022 |
Charge to Income Statement during year | 275 |
Balance at 31 December 2022 |
The deferred tax provision relates to accelerated capital allowances. |
16. | ACCRUALS AND DEFERRED INCOME |
2022 | 2021 |
£ | £ |
Deferred government grants | 52,188 | 59,747 |
The grant relates to capital expenditure and is being released to the income statement evenly over the useful life of the asset. The amount of the grant released to the income statement during the year is £7,558 (2021 - £7,558) which is included within other operating income. |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1 | 2,066 | 2,066 |
The called up share capital represents the nominal value of shares that have been issued by the company. |
Ordinary £1 shares carry full rights with regard to voting, payment of dividends and the distribution of capital on winding up. |
18. | RESERVES |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2022 | 1,013,156 |
Profit for the year |
At 31 December 2022 | 1,476,188 |
Other reserves |
The retained earnings reserve is a distributable reserve which includes all current and prior period retained profits and losses. |
The share premium reserve is a non distributable reserve which represents amounts received on allotment of shares in excess of their nominal value. |
The capital redemption reserve is a non distributable reserve which represents amounts transferred in relation to the company's purchase of its own shares. |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
19. | PENSION COMMITMENTS |
The company operates defined contribution pension schemes. The assets of the pension scheme are held separately from those of the company in an independently administered fund. The pension charge represents contributions payable by the company to the pension fund and amounted to £32,426 (2021 - £27,107). There were outstanding employer contributions of £6,920 (2021 - £5,797) at the statement of financial position date. |
20. | CONTINGENT LIABILITIES |
A revolving credit facility provided by HSBC to the parent company Tri-Wall UK Limited is secured by a fixed and floating charge over the assets of Tri-Wall UK Limited and Tri-Wall Swansea Limited. |
21. | OTHER LEASE COMMITMENTS |
The company leases plant and machinery and equipment under agreements of less than two years. These leases are either short-term or low-value, so have been expensed as incurred and not capitalised as right-of-use assets. The aggregate minimum lease payments in respect of these non-cancellable leases as at 31 December 2022 is £2,280 (2021 -£4,204). |
2022 | 2021 |
£ | £ |
Within one year | 760 | 1,924 |
Between one and five years | 1,520 | 2,280 |
2,280 | 4,204 |
22. | RELATED PARTY DISCLOSURES |
During the year sales of £142,128 (2021 - £170,052) were made to Tri-Wall UK Limited, the parent company. |
In addition the company made purchases and incurred recharges of costs £383,127 (2021 -£751,656) from Tri-Wall UK Limited. |
At the statement of financial position date the company was owed £6,991 (2021 - £40,854) by Tri-Wall UK Limited. The balance relates to sales made to Tri-Wall UK Limited and is interest free, unsecured and payable within 60 days. This balance is included in Trade debtors at the statement of financial position date. |
At the statement of financial position date the company owed £128,990 (2021 - £137,622) to Tri-Wall UK Limited. The balance relates to purchases made from Tri-Wall UK Limited and is interest free, unsecured and payable within 60 days. This balance is included in Trade creditors at the statement of financial position date. |
The company has entered into a loan agreement with Tri-Wall UK Limited the balance is unsecured and is repayable in full by 31 December 2026. The loan is repayable in annual instalments by the 31 December each year. The balance outstanding as at 31 December 2021 is £731,596 (2021 - £766,596). |
The balance as at 31 December 2022 £596,596 ; Interest is charged on this loan balance at a rate of 3.75% per annum and totalled £26,405 (2021 - £29,960) in the year. |
The balance as at 31 December 2022 £135,000, Interest is charged on this loan balance at a rate of 2.55% per annum from 29 December 2022. The balance is repayable in full by 28 December 2023. |
In addition the company owes a further £50,000 (2021 - £50,000) to Tri-Wall UK Limited in relation to dividends payable. The balances are interest free and repayable on demand. |
TRI-WALL SWANSEA LIMITED (REGISTERED NUMBER: 00325158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
23. | ULTIMATE CONTROLLING PARTY |
In the opinion of the directors, the company's ultimate parent company and ultimate controlling party is Rengo Co Limited, a company incorporated in Japan. |
The parent undertaking of the largest group, which includes the company and for which group accounts are prepared, is Rengo Co Limited, a company incorporated in Japan. The parent undertaking of the smallest such group is Tri-Wall Limited, a company incorporated in Hong Kong. |
The company's immediate controlling party is Tri-Wall Europe Holdings Limited registered at 19/F, Chu Kong Shipping Tower, 143 Connaught Road Central, Sheung Wan, Hong Kong. |
Copies of the group financial statements of Tri-Wall Limited are available from the registered office of Tri-Wall Limited, 19/F, Chu Kong Shipping Tower, 143 Connaught Road Central, Sheung Wan, Hong Kong. |
Copies of the group financial statements of Rengo Co Limited are available from the registered office of Rengo Co Limited, Nakanoshima Central Tower, 2-2-7 Nakanoshima, Kita-Ku, Osaka, Japan, 530-0005. |