Company registration number 00603152 (England and Wales)
WICKSTEED LEISURE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JANUARY 2023
WICKSTEED LEISURE LIMITED
COMPANY INFORMATION
Directors
The Hon C E J Howard
The Hon T H G Howard
K J Perkins
J A Gowans
Secretary
S Horne
Company number
00603152
Registered office
Digby Street
Kettering
Northamptonshire
England
NN16 8YJ
Auditor
Ellacotts Audit Services Limited
Vantage House
2700 Kettering Parkway
Kettering Venture Park
Kettering
Northamptonshire
NN15 6XR
WICKSTEED LEISURE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 23
WICKSTEED LEISURE LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 1 JANUARY 2023
- 1 -

The directors present the strategic report for the period ended 1 January 2023.

Principal activities

The principal activity of the company is the design, manufacture and installation of children's playground equipment and safety surfacing.

Review of the business

Working with companies and other organisations within both the public and private sectors, the company designs, supplies and installs playground equipment throughout the UK, the Republic of Ireland, as well as a growing number of overseas markets.

 

Cuts in central government support grants to local authorities has led to a competitive trading environment within the marketplace. Despite this, the directors are confident that this will not affect results in the long term due to the strength of the Wicksteed brand and the company's dominant position in the market.

Principal risks and uncertainties

Appropriate consideration is given to risk management objectives and policies. Facilities are in place to deal with cash flow and liquidity risk. Risk to pricing is mitigated by a diverse supplier portfolio. Credit risk is managed through the adoption of a rigorous credit policy.

Financial performance

The results for the company show a profit of £727,040 (2021: £103,449) for the year and sales of £19,565,414 (2021: £16,578,102).

Key performance indicators

The company's key financial performance indicators during the year were as follows:

 

 

Unit

2022

2021

Turnover

£

19,565,414

16,578,102

Turnover Growth

%

18.0

12.5

Gross Profit

£

2,848,233

1,926,984

Gross Profit Margin

%

14.6%

11.6%

Net Working Capital

£

8,421,729

7,652,675

Net Asset Growth

£

769,054

103,449

Net Asset Growth Percentage

%

10.0

1.0

Acid Test Ratio

:1

2.1

2.1

 

Future developments

The UK playground equipment market remains a challenging environment with continued pressure from both competitors and customers. However, the company maintains a strong market position with a vast product portfolio that has further scope to develop. The company continues to develop new product opportunities to satisfy its wider customer base, investing significant resource into research and development activities to ensure the company's product portfolio is constantly maintained and improved. The company operates a constant programme of customer service improvement and enhancement of customer satisfaction to ensure everything possible is done to maintain its highly-valued customer base. Staff are incentivised to bring forward business improvement ideas to further drive the company forward.

WICKSTEED LEISURE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 1 JANUARY 2023
- 2 -

On behalf of the board

The Hon C E J Howard
Director
6 November 2023
WICKSTEED LEISURE LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 1 JANUARY 2023
- 3 -

The directors present their annual report and financial statements for the period ended 1 January 2023.

Results and dividends

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

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

Directors

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

The Hon C E J Howard
The Hon T H G Howard
K J Perkins
J A Gowans
T Falkner
(Resigned 1 January 2023)
Financial instruments
Price risk, credit risk, liquidity risk and cash flow risk

The business' activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The business' principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations.

 

All of the business' cash balances are held in such a way that achieves a competitive rate of interest. The business makes use of money market facilities where funds are available.

 

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.

 

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Auditor

Ellacotts Audit Services Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006.

WICKSTEED LEISURE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 1 JANUARY 2023
- 4 -
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:

 

 

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

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 company’s auditor 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 company’s auditor is aware of that information.

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
The Hon C E J Howard
Director
6 November 2023
WICKSTEED LEISURE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WICKSTEED LEISURE LIMITED
- 5 -

Qualified opinion

We have audited the financial statements of Wicksteed Leisure Limited (the 'company') for the period ended 1 January 2023 which comprise 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, except for the effects of the matter described in the Basis for qualified opinion paragraph, the financial statements:

Basis for qualified opinion

As a result of being appointed as auditors after the company’s period end date, the counting of physical inventories at the period end was not performed and thus we did not observe this process. We were unable to satisfy ourselves by alternative means concerning the existence of stock held at 1 January 2023, which are included in the balance sheet at £2,839,861, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary.

 

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.

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.

WICKSTEED LEISURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WICKSTEED LEISURE LIMITED
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matters described in the Basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, 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 and the directors' report.

 

Arising solely from the limitation on the scope of our work relating to inventory, referred to above:

 

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:

 

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

WICKSTEED LEISURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WICKSTEED LEISURE LIMITED
- 7 -

As part of an audit in accordance with ISAs (UK),we exercise professional judgment and maintain professional scepticism throughout the audit. We also performed the following procedures:

 

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 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.

David Stevens BA FCA
Senior Statutory Auditor
For and on behalf of Ellacotts Audit Services Limited
Chartered Accountants
Statutory Auditor
Vantage House
2700 Kettering Parkway
Kettering
Northamptonshire
NN15 6XR
6 November 2023
WICKSTEED LEISURE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 1 JANUARY 2023
- 8 -
2022
2021
Notes
£
£
Turnover
3
19,565,414
16,578,102
Cost of sales
(16,717,181)
(14,651,118)
Gross profit
2,848,233
1,926,984
Distribution costs
(380,797)
(420,363)
Administrative expenses
(1,511,603)
(1,403,598)
Operating profit
4
955,833
103,023
Interest receivable and similar income
7
2,052
3,515
Profit before taxation
957,885
106,538
Tax on profit
8
(230,845)
(3,089)
Profit for the financial period
727,040
103,449

The profit and loss account has been prepared on the basis that all operations are continuing operations.

WICKSTEED LEISURE LIMITED
BALANCE SHEET
AS AT 1 JANUARY 2023
01 January 2023
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
9
768,657
788,739
Investments
10
2,202,540
2,202,540
2,971,197
2,991,279
Current assets
Stocks
12
2,839,861
2,539,550
Debtors
13
9,425,443
8,235,877
Cash at bank and in hand
1,265,071
1,611,388
13,530,375
12,386,815
Creditors: amounts falling due within one year
14
(5,108,646)
(4,734,140)
Net current assets
8,421,729
7,652,675
Total assets less current liabilities
11,392,926
10,643,954
Provisions for liabilities
Provisions
15
102,552
102,552
Deferred tax liability
16
95,205
73,273
(197,757)
(175,825)
Net assets
11,195,169
10,468,129
Capital and reserves
Called up share capital
18
400,000
400,000
Profit and loss reserves
10,795,169
10,068,129
Total equity
11,195,169
10,468,129

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 6 November 2023 and are signed on its behalf by:
The Hon C E J Howard
Director
Company registration number 00603152 (England and Wales)
WICKSTEED LEISURE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 1 JANUARY 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2021
400,000
9,964,680
10,364,680
Year ended 31 December 2021:
Profit and total comprehensive income
-
103,449
103,449
Balance at 31 December 2021
400,000
10,068,129
10,468,129
Period ended 1 January 2023:
Profit and total comprehensive income
-
727,040
727,040
Balance at 1 January 2023
400,000
10,795,169
11,195,169
WICKSTEED LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JANUARY 2023
- 11 -
1
Accounting policies
Company information

Wicksteed Leisure Limited is a private company limited by shares incorporated in England and Wales. The registered office is Digby Street, Kettering, Northamptonshire, England, NN16 8YJ.

1.1
Reporting period

The accounts have been prepared to the period ended 1 January 2023 but the financial information relates to the year ended 31 December 2022. The comparative figures are for the year ended 31 December 2021.

1.2
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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 and loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Jardentome Limited. These consolidated financial statements are available from its registered office, Digby Street, Kettering, Northamptonshire, NN16 8YJ.

1.3
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.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

WICKSTEED LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 JANUARY 2023
1
Accounting policies
(Continued)
- 12 -

Revenue from installation projects is recognised at agreed stages of completion of a given project.

1.5
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.6
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
100 years straight line
Plant and equipment
3 - 10 years straight line
Fixtures fittings tools and equipment
1 - 10 years straight line

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.

1.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

WICKSTEED LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 JANUARY 2023
1
Accounting policies
(Continued)
- 13 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

 

The cost of finished goods and work in progress comprises direct materials and, where applicable direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit and loss.

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.

1.10
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.

1.11
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.

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.

WICKSTEED LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 JANUARY 2023
1
Accounting policies
(Continued)
- 14 -
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.

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.

WICKSTEED LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 JANUARY 2023
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.12
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.

1.13
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 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 when the company has 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.

1.14
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

WICKSTEED LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 JANUARY 2023
1
Accounting policies
(Continued)
- 16 -
1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

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

1.17
Leases

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

1.18
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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tangible Fixed Assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing assets lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Stock

Stock is reviewed annually for impairment and a stock provision is provided for accordingly on a line by line basis. Product life cycles, changing fashions, general market conditions and expected net realisable value are taken into condiseration when determining the level of provision required.

WICKSTEED LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 JANUARY 2023
- 17 -
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by geographical market
UK
19,484,603
16,549,186
Europe
58,649
22,489
International
22,162
6,427
19,565,414
16,578,102
2022
2021
£
£
Other revenue
Interest income
2,052
3,515
4
Operating profit
2022
2021
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange gains
(53,604)
(30,206)
Fees payable to the company's auditor for the audit of the company's financial statements
10,500
11,700
Depreciation of owned tangible fixed assets
137,982
130,856
Profit on disposal of tangible fixed assets
(4,077)
(8,539)
Operating lease charges
99,367
98,489
5
Employees

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

2022
2021
Number
Number
Production
46
38
Administration and support
62
61
Total
108
99
WICKSTEED LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 JANUARY 2023
5
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
3,320,199
2,937,397
Social security costs
229,640
204,723
Pension costs
97,288
100,620
3,647,127
3,242,740
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
18,000
154,284

Key Management Personnel

The Directors do not consider there to be any key management personnel remuneration to be disclosed in the year or prior year, other than the directors' remuneration disclosed above.

7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
2,052
3,515
2022
2021
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
2,052
3,515
8
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
190,143
29,980
Adjustments in respect of prior periods
18,770
(50,157)
Total current tax
208,913
(20,177)
Deferred tax
Origination and reversal of timing differences
21,932
23,266
Total tax charge
230,845
3,089
WICKSTEED LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 JANUARY 2023
8
Taxation
(Continued)
- 19 -

The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Profit before taxation
957,885
106,538
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
181,998
20,242
Tax effect of expenses that are not deductible in determining taxable profit
19,196
14,250
Permanent capital allowances in excess of depreciation
10,881
18,754
Under/(over) provided in prior years
18,770
(50,157)
Taxation charge for the period
230,845
3,089
9
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures fittings tools and equipment
Total
£
£
£
£
Cost
At 1 January 2022
493,743
1,148,140
775,749
2,417,632
Additions
-
0
47,321
82,750
130,071
Disposals
-
0
(26,340)
(19,970)
(46,310)
At 1 January 2023
493,743
1,169,121
838,529
2,501,393
Depreciation and impairment
At 1 January 2022
185,411
823,919
619,563
1,628,893
Depreciation charged in the period
4,944
63,644
69,394
137,982
Eliminated in respect of disposals
-
0
(14,167)
(19,972)
(34,139)
At 1 January 2023
190,355
873,396
668,985
1,732,736
Carrying amount
At 1 January 2023
303,388
295,725
169,544
768,657
At 31 December 2021
308,332
324,221
156,186
788,739
10
Fixed asset investments
2022
2021
Notes
£
£
Investments in subsidiaries
11
2,202,540
2,202,540
WICKSTEED LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 JANUARY 2023
- 20 -
11
Subsidiaries

Details of the company's subsidiaries at 1 January 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Fawns Recreational Services Limited
England and Wales
Ordinary
100.00
McLays Supplies Limited
England and Wales
Ordinary
100.00
Wickstead Leisure Limited
England and Wales
Ordinary
100.00
Wickstead Playground Equipment Limited
England and Wales
Ordinary
100.00
Wicksteed Playground Equipment Limited
England and Wales
Ordinary
100.00
Wicksteedathorne Limited
England and Wales
Ordinary
100.00

The principal activity of Fawns Recreational Services Limited is the manufacture and installation of children's playground equipment. The results of Fawns Recreational Services Limited are included in the consolidated accounts of Jardentome Limited.

 

All of the other companies noted above are currently dormant and were dormant for the prior year.

 

12
Stocks
2022
2021
£
£
Raw materials and consumables
1,920,414
1,417,970
Finished goods and goods for resale
919,447
1,121,580
2,839,861
2,539,550
13
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
3,216,074
2,331,520
Amounts owed by group undertakings
6,068,919
5,375,555
Other debtors
12,958
382,772
Prepayments and accrued income
127,492
146,030
9,425,443
8,235,877
WICKSTEED LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 JANUARY 2023
- 21 -
14
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
1,807,176
1,564,224
Amounts owed to group undertakings
2,238,765
2,359,084
Corporation tax
190,143
24,658
Other taxation and social security
495,623
424,004
Other creditors
183,263
104,682
Accruals and deferred income
193,676
257,488
5,108,646
4,734,140
15
Provisions for liabilities
2022
2021
£
£
Other provision
102,552
102,552
Deferred tax liabilities
16
95,205
73,273
197,757
175,825

The other provisions are in respect of the extended cost of warranty claims based on past evidence of these claims, together with a provision to reflect the company's insurance arrangements.

16
Deferred taxation

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

Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
95,205
73,273
2022
Movements in the period:
£
Liability at 1 January 2022
73,273
Charge to profit or loss
21,932
Liability at 1 January 2023
95,205
WICKSTEED LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 JANUARY 2023
- 22 -
17
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
97,288
100,620

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.

18
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
400,000
400,000
400,000
400,000
19
Operating lease commitments
Lessee

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:

2022
2021
£
£
Within one year
57,800
57,959
Between two and five years
68,788
58,176
126,588
116,135
20
Capital commitments

Amounts contracted for but not provided in the financial statements:

2022
2021
£
£
Acquisition of tangible fixed assets
-
33,860
21
Related party transactions

Sales and purchases between other related parties are made at normal market prices. Outstanding balances with entities are unsecured, interest free and repayable on demand.

 

The company has not provided or benefited from any guarantees for any related party receivables or payables.

WICKSTEED LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 JANUARY 2023
- 23 -
22
Ultimate controlling party

The company's immediate and ultimate parent is Jardentome Limited, incorporated in England and Wales.

 

The consolidated financial statements of the immediate and ultimate group are available upon request from Wicksteed Leisure Limited, Digby Street, Kettering, Northamptonshire, England, NN16 8YJ.

 

The ultimate controlling parties are Mr W Berry and Mr H Teacher.

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