Company Registration No. NI011967 (Northern Ireland)
WILSONS AUCTIONS LIMITED
GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
WILSONS AUCTIONS LIMITED
COMPANY INFORMATION
Directors
Mr I C Wilson
Mrs A Wilson
Mr P A Johnston
Mr F Wilson
Ms R Wilson
Mr G Wilson
Mr P Clarkin
Mr C Walker
Secretary
Mr I C Wilson
Company number
NI011967
Registered office
22 Mallusk Road
Glengormley
Newtownabbey
Co Antrim
BT36 4PP
Auditor
GMcG LISBURN
Century House
40 Crescent Business Park
Lisburn
BT28 2GN
Business address
22 Mallusk Road
Glengormley
Newtownabbey
Co Antrim
BT36 4PP
Bankers
Danske Bank
39 Mallusk Road
Newtownabbey
Co.Antrim
BT36 4PP
Solicitors
Edwards & Co
28 Hill Street
Belfast
BT1 2LA
WILSONS AUCTIONS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 10
Group income statement
11
Group statement of comprehensive income
12
Group statement of financial position
13
Company statement of financial position
14 - 15
Group statement of changes in equity
16
Company statement of changes in equity
17
Group statement of cash flows
18
Company statement of cash flows
19
Notes to the financial statements
20 - 46
WILSONS AUCTIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

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

 

Founded in 1936, the Wilsons Auctions Group is the largest independently owned auction house in both the United Kingdom and Ireland. At the year end the group had ten auction sites throughout the UK and Ireland. From these sites it handles the sale of assets from around the world. This allows vendors the best opportunity to benefit from regional price variations and maximise the price realised at auction.

 

The group also maintains five storage and distribution facilities throughout the UK and has expertise in a wide range of asset valuation and auctioneering services including cars, plant and machinery, liquidation and property.

 

The group is progressive and forward-looking with a passion for continually finding new ways to offer first rate sales and services to both buyers and sellers alike. This is achieved by the provision of a thoroughly professional and personal service while keeping up to date with the latest technology and industry advances.

 

Investment in the business is considered by the directors to be vital for maintaining existing business and for securing long term future contracts. The group continued its investment in its auction sites and during the year undertook refurbishment of the Dublin auction site.

 

Following its acquisition in 2020, Wilsons Auctions has made progress on bringing the Shotton Works site in North Wales into use as a storage facility for an expanded police disposal offering. This site will give additional capacity in Wales and the West of England for police auctions.

 

The directors are committed to continual improvement in its use of technology. The group has invested £1.02m to 31 March 2023 in the initial development of a new back office system and customer portal. The software will redefine how Wilsons Auctions staff operate and manage auctions as well as giving customers greater control over their transactions through a self service portal. The development will also include a fresh and modern website for the group.

Fair review of the business

Earnings before interest, tax, depreciation and amortisation (EBITDA), is considered by the directors to be the key performance indicator and the most effective measure to evaluate the performance of the business. The directors are pleased to report an EBITDA for the group of £8,541,430 (2022 - £8,017,331).

 

The directors also consider turnover, and the value attained for goods at auction to be good performance indicators and effective measures to help evaluate the performance of the business.

 

Turnover increased by 14% from £32,897,477 in 2022 to £37,403,565 in 2023 generating a gross profit of £18,182,109 (2022 - £15,564,536) at a gross profit margin of 49% (2022 - 47%). These changes were as a result of a change in sales mix across the group, and a continued growth in value of goods attained. The total value attained for goods auctioned in the year was £485,151,295 (2022 - £463,326,754).

WILSONS AUCTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Principal risks and uncertainties

The directors consider that the principal risks and uncertainties facing the group are:

 

Competitive Forces

The group faces competition in all locations. Whilst competitors are largely competing on price, Wilsons Auctions Limited continues to differentiate its offering based on a professional service, prices achieved at auction and not buying stock, for resale purposes, as has become the norm with competitors.

 

Eurozone Transactions

The group operates in Ireland and is exposed to fluctuations in the Euro currency. The group has developed a diversified business model which involves countercyclical elements through its liquidations and disposals department. The group monitors cash requirements in both currencies in which it operates and seeks to take advantage of the best available exchange rates having regard to operational requirements.

 

Information Technology

The group continually maintains and updates both hardware and software to protect against external attack while operating a back up process to allow business to both continue and be restored in the event of accidental or deliberate failure of the IT systems. The group also holds Cyber Essential Certification and has completed implementation of ISO27001 on Information Security.

Section 172 Statement

The directors recognise their duty to act, in good faith, in order to promote the success of the group and company for the benefit of its members as a whole, and in doing so, having due regard (amongst other matters) to:

 

The group's key stakeholders are considered to be investors, customers, suppliers and employees. The directors strive to understand the interests of its stakeholders and the impact of the group and company's decisions on them and do this by continued direct engagement.

 

Investors

The directors recognise the importance of shareholder support and current debt funding in achieving the group's capital investment programme which has continued in the year to 31 March 2023. All shareholders are encouraged to engage in the key decision making process of the Board.

 

Customers and suppliers

Strong, mutually beneficial relationships with both customers and suppliers is a key component of the group's continued success. The directors continually engage with customers and suppliers to manage expectations and deliverables.

 

Employees

The group's employees play an important role in Wilsons Auctions success. As stated in the Directors' Report, the involvement of employees in the group's performance is actively encouraged by the provision of relevant information. Employees are kept informed of performance and other financial and economic factors affecting the group and company.

On behalf of the board

Mr I C Wilson
Director
7 November 2023
WILSONS AUCTIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

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

Principal activities

The principal activity of the group continued to be that of auctioneers. The group operates from ten modern auction centres in Dalry (Scotland), Dublin (Republic of Ireland), Belfast (Northern Ireland), Portadown (Northern Ireland), Queensferry (England), Telford (England), Newcastle (England), Newport (Wales), Maidstone (England) and Oxford (England).

Results and dividends

The results for the year are set out on page 11.

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

Directors

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

Mr I C Wilson
Mrs A Wilson
Mr P A Johnston
Mr F Wilson
Ms R Wilson
Mr G Wilson
Mr P Clarkin
Mr C Walker
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

Consultation with employees is made at all levels, with the aim of ensuring that views are taken into account when decisions are made that are likely to affect their interests. Communication with all employees is made by emailed newsletters and manager briefings.

 

The business had a number of employee engagement activities during the year.

Business relationships

The Strategic Report discloses other matters to be disclosed in respect of the group's business relationships with customers, suppliers and others.

Post reporting date events

As part of a group reorganisation on 1 April 2023, the trade and assets of the subsidiary company Wilsons Auctions Oxford Limited was hived up to the parent company Wilsons Auctions Limited.

Auditor

The auditor, GMcG LISBURN, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

WILSONS AUCTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
Energy and carbon report

The group recognises its corporate responsibility to carry out its operations while minimising its environmental impact. The group monitors various environmental objectives as part of its ISO accreditation. It continually works to reduce the direct environmental impact. In the year to 31 March 2023 the group generated 1,517 tonnes (2022 - 1,183 tonnes) of CO2 emissions from electricity and fuel usage.

 

The group has set objectives on carbon reduction, EV charging points, tree planting and re-wilding, re-use and recycling of cardboard, solar panel installation and PHEV and electric cars in its fleet.

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

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

On behalf of the board
Mr I C Wilson
Director
7 November 2023
WILSONS AUCTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WILSONS AUCTIONS LIMITED
- 5 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

WILSONS AUCTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WILSONS AUCTIONS LIMITED
- 6 -

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

WILSONS AUCTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WILSONS AUCTIONS LIMITED
- 7 -
Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

WILSONS AUCTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WILSONS AUCTIONS LIMITED
- 8 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the group and company for fraud and identified the greatest potential for fraud in revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the group and company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group's and company’s ability to operate or to avoid a material penalty.

WILSONS AUCTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WILSONS AUCTIONS LIMITED
- 9 -
Audit response to risks identified

Our procedures to respond to the risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they 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 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.

WILSONS AUCTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WILSONS AUCTIONS LIMITED
- 10 -

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.

Mrs Susan Dunlop FCA (Senior Statutory Auditor)
For and on behalf of GMcG LISBURN
7 November 2023
Chartered Accountants
Statutory Auditor
Century House
40 Crescent Business Park
Lisburn
BT28 2GN
WILSONS AUCTIONS LIMITED
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
2023
2022
Notes
£
£
Revenue
3
37,403,565
32,897,477
Cost of sales
(19,221,456)
(17,332,941)
Gross profit
18,182,109
15,564,536
Administrative expenses
(11,325,288)
(9,241,154)
Other operating income
4
334,140
373,505
Operating profit
5
7,190,961
6,696,887
Investment income
9
33
82
Finance costs
10
(45,101)
(91,666)
Change in fair value of financial asset
11
-
546,625
Profit before taxation
7,145,893
7,151,928
Tax on profit
12
(1,332,526)
(1,497,694)
Profit for the financial year
5,813,367
5,654,234
Profit for the financial year is all attributable to the owners of the parent company.

The income statement has been prepared on the basis that all operations are continuing operations.

WILSONS AUCTIONS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
2023
2022
£
£
Profit for the year
5,813,367
5,654,234
Other comprehensive income
Revaluation of property, plant and equipment
-
0
5,736,304
Currency translation differences
390,379
(65,426)
Tax relating to other comprehensive income
-
0
(820,988)
Other comprehensive income for the year
390,379
4,849,890
Total comprehensive income for the year
6,203,746
10,504,124
Total comprehensive income for the year is all attributable to the owners of the parent company.
WILSONS AUCTIONS LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2023
31 March 2023
- 13 -
2023
2022
Notes
£
£
£
£
Non-current assets
Goodwill
13
2,696,747
3,120,534
Other intangible assets
13
1,016,107
362,732
Total intangible assets
3,712,854
3,483,266
Property, plant and equipment
14
29,302,429
27,975,193
Investment property
15
3,073,850
2,980,625
Investments
16
11
11
36,089,144
34,439,095
Current assets
Inventories
18
274,205
472,967
Trade and other receivables
19
22,569,088
17,220,303
Cash and cash equivalents
7,199,865
9,433,869
30,043,158
27,127,139
Current liabilities
20
(26,348,713)
(25,493,549)
Net current assets
3,694,445
1,633,590
Total assets less current liabilities
39,783,589
36,072,685
Non-current liabilities
21
(128,838)
(2,481,525)
Provisions for liabilities
Deferred tax liability
24
1,007,665
1,147,820
(1,007,665)
(1,147,820)
Net assets
38,647,086
32,443,340
Equity
Called up share capital
26
30
30
Revaluation reserve
27
10,123,104
10,012,935
Retained earnings
28
28,523,952
22,430,375
Total equity
38,647,086
32,443,340
The financial statements were approved by the board of directors and authorised for issue on 7 November 2023 and are signed on its behalf by:
07 November 2023
Mr I C Wilson
Director
Company registration number NI011967 (Northern Ireland)
WILSONS AUCTIONS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023
31 March 2023
- 14 -
2023
2022
Notes
£
£
£
£
Non-current assets
Goodwill
13
789,627
250,999
Other intangible assets
13
1,016,107
362,732
Total intangible assets
1,805,734
613,731
Property, plant and equipment
14
28,977,919
22,986,064
Investment properties
15
3,073,850
2,980,625
Investments
16
4,433,259
12,042,462
38,290,762
38,622,882
Current assets
Inventories
18
274,205
385,996
Trade and other receivables
19
22,219,880
14,903,730
Cash and cash equivalents
2,862,802
2,875,447
25,356,887
18,165,173
Current liabilities
20
(24,074,907)
(21,418,509)
Net current assets/(liabilities)
1,281,980
(3,253,336)
Total assets less current liabilities
39,572,742
35,369,546
Non-current liabilities
21
(128,838)
(2,462,567)
Provisions for liabilities
Deferred tax liability
24
962,355
663,505
(962,355)
(663,505)
Net assets
38,481,549
32,243,474
WILSONS AUCTIONS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2023
31 March 2023
2023
2022
Notes
£
£
£
£
- 15 -
Equity
Called up share capital
26
30
30
Revaluation reserve
27
8,785,927
8,675,758
Retained earnings
28
29,695,592
23,567,686
Total equity
38,481,549
32,243,474

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £8,012,963 (2022 - £4,116,820).

The financial statements were approved by the board of directors and authorised for issue on 7 November 2023 and are signed on its behalf by:
07 November 2023
Mr I C Wilson
Director
Company Registration No. NI011967
WILSONS AUCTIONS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
Share capital
Revaluation reserve
Retained earnings
Total
£
£
£
£
Balance at 1 April 2021
30
5,117,936
16,821,250
21,939,216
Year ended 31 March 2022:
Profit for the year
-
-
5,654,234
5,654,234
Other comprehensive income:
Revaluation of property, plant and equipment
-
5,736,304
-
5,736,304
Currency translation differences
-
-
(45,109)
(45,109)
Tax relating to other comprehensive income
-
(820,988)
-
0
(820,988)
Total comprehensive income for the year
-
4,915,316
5,609,125
10,524,441
Currency translation differences
-
(20,317)
-
(20,317)
Balance at 31 March 2022
30
10,012,935
22,430,375
32,443,340
Year ended 31 March 2023:
Profit for the year
-
-
5,813,367
5,813,367
Other comprehensive income:
Currency translation differences
-
-
280,210
280,210
Total comprehensive income for the year
-
-
6,093,577
6,093,577
Currency translation differences
-
110,169
-
110,169
Balance at 31 March 2023
30
10,123,104
28,523,952
38,647,086
WILSONS AUCTIONS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
Share capital
Revaluation reserve
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 April 2021
30
4,176,998
19,495,975
23,673,003
Year ended 31 March 2022:
Profit for the year
-
-
4,116,820
4,116,820
Other comprehensive income:
Revaluation of property, plant and equipment
-
5,087,147
-
5,087,147
Currency translation differences
-
-
(45,109)
(45,109)
Tax relating to other comprehensive income
-
(568,070)
-
0
(568,070)
Total comprehensive income for the year
-
4,519,077
4,071,711
8,590,788
Currency translation differences
-
(20,317)
-
(20,317)
Balance at 31 March 2022
30
8,675,758
23,567,686
32,243,474
Year ended 31 March 2023:
Profit for the year
-
-
8,012,963
8,012,963
Other comprehensive income:
Currency translation differences
-
-
280,210
280,210
Total comprehensive income for the year
-
-
8,293,173
8,293,173
Other adjustments
13
-
-
(2,165,267)
(2,165,267)
Currency translation differences
-
110,169
-
110,169
Balance at 31 March 2023
30
8,785,927
29,695,592
38,481,549
WILSONS AUCTIONS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
34
7,801,945
14,072,432
Interest paid
(45,101)
(91,666)
Income taxes paid
(1,404,052)
(1,283,619)
Net cash inflow from operating activities
6,352,792
12,697,147
Investing activities
Purchase of intangible assets
(653,375)
(362,732)
Purchase of property, plant and equipment
(2,822,838)
(1,441,348)
Proceeds on disposal of property, plant and equipment
742,822
119,169
Purchase of subsidiaries
-
(2,193,487)
Other investments and loans made
(3,143,432)
(1,178,016)
Interest received
33
82
Net cash used in investing activities
(5,876,790)
(5,056,332)
Financing activities
Proceeds of new bank loans
-
3,000,000
Repayment of bank loans
(2,735,142)
(264,858)
Payment of finance leases obligations
(99,493)
(87,349)
Net cash (used in)/generated from financing activities
(2,834,635)
2,647,793
Net (decrease)/increase in cash and cash equivalents
(2,358,633)
10,288,608
Cash and cash equivalents at beginning of year
9,412,322
(853,754)
Effect of foreign exchange rates
113,796
(22,532)
Cash and cash equivalents at end of year
7,167,485
9,412,322
Relating to:
Cash at bank and in hand
7,199,865
9,433,869
Bank overdrafts included in creditors payable within one year
(32,380)
(21,547)
WILSONS AUCTIONS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
35
6,407,911
10,455,835
Interest paid
(43,720)
(107,880)
Income taxes paid
(1,319,172)
(822,627)
Net cash inflow from operating activities
5,045,019
9,525,328
Investing activities
Cash acquired from subsidiary companies on group restructure
6,595,842
-
Purchase of intangible assets
(653,375)
(362,732)
Purchase of property, plant and equipment
(2,819,919)
(1,278,230)
Proceeds on disposal of property, plant and equipment
733,811
72,519
Purchase of subsidiary
(100)
(4,871,489)
Other investments and loans made
(3,143,432)
(1,178,016)
Interest received
33
75
Net cash generated from/(used in) investing activities
712,860
(7,617,873)
Financing activities
Proceeds of new bank loans
-
3,000,000
Repayment of bank loans
(2,735,142)
(264,858)
Payment of finance leases obligations
(77,969)
(72,182)
Net cash (used in)/generated from financing activities
(2,813,111)
2,662,960
Net increase in cash and cash equivalents
2,944,768
4,570,415
Cash and cash equivalents at beginning of year
(228,142)
(4,776,025)
Effect of foreign exchange rates
113,796
(22,532)
Cash and cash equivalents at end of year
2,830,422
(228,142)
Relating to:
Cash at bank and in hand
2,862,802
2,875,447
Bank overdrafts included in creditors payable within one year
(32,380)
(3,103,589)
WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
1
Accounting policies
Company information

Wilsons Auctions Limited (“the company”) is a private limited company domiciled and incorporated in Northern Ireland. The registered office is 22 Mallusk Road, Glengormley, Newtownabbey, Co Antrim, BT36 4PP.

 

The principal activity of the group is that of auctioneers. The group operates out of ten locations in the United Kingdom and Republic of Ireland. They are located at Belfast (Northern Ireland), Portadown (Northern Ireland), Dalry (Scotland), Dublin (Republic of Ireland), Telford (England), Queensferry (England), Newcastle (England), Newport (Wales), Maidstone (England) and Oxford (England).

 

The group consists of Wilsons Auctions Limited and all of its subsidiaries.

1.1
Accounting convention

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

The financial statements are prepared in sterling. Monetary amounts in these financial statements are rounded to the nearest £. The company operates with two functional currencies. The Belfast, Portadown, Dalry, Telford, Queensferry, Newcastle, Newport, Maidstone and Oxford branches operate with Sterling as their functional currency. The functional currency of the Dublin branch is the Euro.

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

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

The consolidated financial statements incorporate those of Wilsons Auctions Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries are consolidated using the purchase method, with the exception of Wilsons Auctions (Portadown) Limited which is consolidated under merger accounting principles. Their results are incorporated from the date that control passes.

 

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

 

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

The group income statement and statement of cash flows include the results and cash flows of Wilsons Auctions (Telford) Ltd, Wilsons Auctions (Portadown) Limited, Wilsons Auctions Newport Limited, Wilsons Auctions (Maidstone) Limited, Wilsons Auctions Spain S.L., Wilsons Auctions Oxford (Capital) Limited and Wilsons Auctions Oxford Limited for the period.

WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies (Continued)
- 21 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Revenue

Commission and associated revenue from auction sales is recognised when a bid is agreed between vendor and purchaser, cancellation of auction sales is recognised at the date of cancellation by either vendor or purchaser. Revenue is measured at the fair value of the consideration received or receivable and represents the commissions on the sale of vehicles and other items, exclusive of Value Added Tax.

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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. When the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

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. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit, once development has been completed.

WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies (Continued)
- 22 -
1.6
Intangible fixed assets - goodwill

Goodwill arising on consolidation (i.e positive purchased goodwill arising on acquisitions) is capitalised, classified as an asset on the Balance Sheet and amortised over its estimated useful life, which is estimated to be 10 years. Goodwill is reviewed for impairment at the end of the first financial year following each acquisition and subsequently as and when the circumstances emerge that indicate that the carrying value may not be recoverable.

 

Goodwill in relation to the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired is also represented in the accounts. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Development costs
Not yet amortised

No provision for amortisation has been made on the group's development costs capitalised as the software being developed has not yet been brought into use at the year end.

WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies (Continued)
- 23 -
1.8
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Freehold land and buildings
Not depreciated
Leasehold buildings and improv'nts
2% straight line
Interest in long leasehold buildings
2% straight line
Plant and machinery
25% straight line
Fixtures, fittings & equipment
15% straight line
Motor vehicles
25% straight line

No provision for depreciation is made on the group's freehold property as the estimated residual value of the property is not materially different from the carrying value and hence any depreciation to be charged would be immaterial. The group has a policy of regular maintenance and repair such that the property is retained at its previously assessed standard of performance.

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

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss.

The directors reviewed the depreciation policy in the year, and as a result the depreciation rates were changed in the parent company Wilsons Auctions Limited. The depreciation rate for plant and equipment was changed from 20% straight line to 25% straight line, increasing depreciation in the year by £18,904. The depreciation rate for Fixtures, fittings and equipment was changed from 20% straight line to 15% straight line, with depreciation decreasing by £8,438. The depreciation rate for Motor vehicles was changed from 25% reducing balance to 25% straight line, increasing the cost of depreciation for the year by £128,954.

1.9
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.10
Non-current investments

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

 

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

WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies (Continued)
- 24 -

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

1.11
Impairment of non-current assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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

 

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

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

1.12
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories 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.

1.13
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.

WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies (Continued)
- 25 -
1.14
Financial instruments

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

 

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

Other financial assets

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

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies (Continued)
- 26 -
Basic financial liabilities

Basic financial liabilities, including trade and other payables, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.15
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.16
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies (Continued)
- 27 -
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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.17
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 non-current 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.

1.18
Retirement benefits

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

1.19
Leases

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

 

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

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

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

1.20
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies (Continued)
- 28 -
1.21
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.

The accounts of foreign branches have been translated at the rates of exchange ruling at the balance sheet date. Exchange differences arising on the retranslation of these accounts at the beginning of the year are dealt with through the reserves of the company.

2
Judgements and key sources of estimation uncertainty

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

 

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

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.

Property, plant and equipment

The annual depreciation charge on fixed assets depends primarily on the estimated lives of each type of asset and estimates of residual values. The directors regularly review these asset lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful lives is included in the accounting policies.

Freehold land and buildings

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value. Fair value is determined annually and derived from the current market rents and investment property yields for comparable real estate. Valuation involves some estimation uncertainty but is based on periodic advice from expert valuers.

Investment Properties

Fair value is determined annually and derived from the current market rents and investment property yields for comparable real estate. Valuation involves some estimation uncertainty but is based on periodic advice from independent expert valuers.

Taxation

Judgements are made in relation to the calculation of certain aspects of the year end tax provisions and the respective tax charge. The management used external professional advice to support the year end provisions.

WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
3
Revenue
2023
2022
£
£
Revenue analysed by class of business
Commissions and indemnities
27,981,629
24,507,738
Other income and charges
9,421,936
8,389,739
37,403,565
32,897,477
2023
2022
£
£
Revenue analysed by geographical market
UK
31,747,606
29,146,773
Republic of Ireland
5,655,959
3,750,704
37,403,565
32,897,477
4
Other operating income
2023
2022
£
£
Rental income
330,585
310,281
CJRS (furlough) grant
-
58,224
Other coronavirus support
-
5,000
Other grant income
3,555
-
334,140
373,505
5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
18,327
3,153
Government grants
(3,555)
(63,224)
Depreciation of owned property, plant and equipment
943,555
956,768
Depreciation of property, plant and equipment held under finance leases
126,938
77,057
Profit on disposal of property, plant and equipment
(143,811)
(43,006)
Amortisation of intangible assets
423,787
329,623
Operating lease charges
331,915
264,239
WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
40,000
32,500
Audit of the financial statements of the company's subsidiaries
20,000
45,000
60,000
77,500
For other services
Other assurance services
4,000
3,950
Taxation compliance services
20,650
18,850
Other taxation services
20,699
33,450
45,349
56,250
7
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Sales
58
57
54
40
Support
73
75
68
47
Other
118
118
102
62
Total
249
250
224
149

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
8,985,184
7,751,915
7,968,991
5,257,658
Social security costs
978,876
878,468
863,658
579,299
Pension costs
151,481
141,309
133,241
78,036
10,115,541
8,771,692
8,965,890
5,914,993
WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
2,139,513
1,932,636
Company pension contributions to defined contribution schemes
6,274
6,604
2,145,787
1,939,240

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2022 - 5).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
590,379
590,036
9
Investment income
2023
2022
£
£
Interest income
Interest on bank deposits
33
82
10
Finance costs
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
32,915
67,851
Interest on finance leases and hire purchase contracts
7,201
7,237
40,116
75,088
Other finance costs:
Other interest
4,985
16,578
Total finance costs
45,101
91,666
11
Other gains and losses
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Change in value of investment properties
-
546,625
WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 32 -
12
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,639,037
1,367,409
Adjustments in respect of prior periods
(166,356)
449
Double tax relief
(220,054)
(101,692)
Total UK current tax
1,252,627
1,266,166
Foreign current tax on profits for the current period
220,054
101,692
Total current tax
1,472,681
1,367,858
Deferred tax
Origination and reversal of timing differences
(110,721)
62,420
Changes in tax rates
(29,434)
67,416
Total deferred tax
(140,155)
129,836
Total tax charge
1,332,526
1,497,694

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

2023
2022
£
£
Profit before taxation
7,145,893
7,151,928
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
1,357,720
1,358,866
Tax effect of expenses that are not deductible in determining taxable profit
134,731
91,102
Origination and reversal of timing differences
109,642
(36,041)
Adjustments in respect of prior years
(166,356)
449
Effect of change in corporation tax rate
(29,434)
67,416
Consolidation adjustments
53,545
50,076
Potential gain on investment property
-
0
(31,328)
Other adjustments
(127,322)
(2,846)
Taxation charge
1,332,526
1,497,694
WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
12
Taxation (Continued)
- 33 -

In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Revaluation of property
-
820,988
13
Intangible fixed assets
Group
Goodwill
Development costs
Total
£
£
£
Cost
At 1 April 2022
5,820,428
362,732
6,183,160
Additions
-
0
653,375
653,375
At 31 March 2023
5,820,428
1,016,107
6,836,535
Amortisation and impairment
At 1 April 2022
2,699,894
-
0
2,699,894
Amortisation charged for the year
423,787
-
0
423,787
At 31 March 2023
3,123,681
-
0
3,123,681
Carrying amount
At 31 March 2023
2,696,747
1,016,107
3,712,854
At 31 March 2022
3,120,534
362,732
3,483,266
WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
13
Intangible fixed assets (Continued)
- 34 -
Company
Goodwill
Development costs
Total
£
£
£
Cost
At 1 April 2022
653,796
362,732
1,016,528
Additions
-
0
653,375
653,375
Transfer from investments
2,901,132
-
0
2,901,132
At 31 March 2023
3,554,928
1,016,107
4,571,035
Amortisation and impairment
At 1 April 2022
402,797
-
0
402,797
Amortisation charged for the year
197,237
-
0
197,237
Other adjustments
2,165,267
-
0
2,165,267
At 31 March 2023
2,765,301
-
0
2,765,301
Carrying amount
At 31 March 2023
789,627
1,016,107
1,805,734
At 31 March 2022
250,999
362,732
613,731

As part of a group reorganisation on 1 April 2022, the trade and assets of the subsidiary companies, Wilsons Auctions (Portadown) Limited, Wilsons Auctions (Telford) Limited, Wilsons Auctions Newport Limited and Wilsons Auctions Oxford Capital Limited were hived up to the parent company Wilsons Auctions Limited.

 

Transfer from investments

The reorganisation resulted in a reclassification of the original investment in the subsidiary companies. £2,901,132 being the goodwill at date of acquisition was transferred from investments to goodwill.

 

Other adjustments

As the acquisition of the subsidiaries happened some time ago, an amount equivalent to historic goodwill amortisation charge being £2,165,267 has been taken to retained earnings in Wilsons Auctions Limited.

WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 35 -
14
Property, plant and equipment
Group
Freehold land and buildings
Leasehold buildings and improv'nts
Interest in long leasehold buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 April 2022
24,174,799
1,404,332
334,107
959,261
4,592,667
1,840,419
33,305,585
Additions
360,143
-
0
-
0
43,827
1,134,674
1,284,194
2,822,838
Disposals
-
0
-
0
-
0
(94,564)
(124,969)
(910,329)
(1,129,862)
Exchange adjustments
161,025
-
0
-
0
3,792
18,660
5,169
188,646
At 31 March 2023
24,695,967
1,404,332
334,107
912,316
5,621,032
2,219,453
35,187,207
Depreciation and impairment
At 1 April 2022
1,995
384,202
334,107
554,733
3,184,776
870,579
5,330,392
Depreciation charged in the year
3,419
6,842
-
0
153,632
438,912
467,688
1,070,493
Eliminated in respect of disposals
-
0
-
0
-
0
(62,920)
(117,140)
(350,791)
(530,851)
Exchange adjustments
-
0
-
0
-
0
1,883
10,697
2,164
14,744
At 31 March 2023
5,414
391,044
334,107
647,328
3,517,245
989,640
5,884,778
Carrying amount
At 31 March 2023
24,690,553
1,013,288
-
0
264,988
2,103,787
1,229,813
29,302,429
At 31 March 2022
24,172,804
1,020,130
-
0
404,528
1,407,891
969,840
27,975,193
WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 36 -
Company
Freehold land and buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 April 2022
20,730,625
724,069
3,649,315
1,680,435
26,784,444
Additions
4,648,674
51,614
1,407,376
1,319,625
7,427,289
Disposals
-
0
(51,037)
(124,969)
(901,983)
(1,077,989)
Exchange adjustments
161,025
3,792
18,660
5,169
188,646
At 31 March 2023
25,540,324
728,438
4,950,382
2,103,246
33,322,390
Depreciation and impairment
At 1 April 2022
-
0
487,660
2,564,688
746,032
3,798,380
Depreciation charged in the year
-
0
122,099
429,632
467,688
1,019,419
Eliminated in respect of disposals
-
0
(28,482)
(117,140)
(342,445)
(488,067)
Exchange adjustments
-
0
1,883
10,697
2,159
14,739
At 31 March 2023
-
0
583,160
2,887,877
873,434
4,344,471
Carrying amount
At 31 March 2023
25,540,324
145,278
2,062,505
1,229,812
28,977,919
At 31 March 2022
20,730,625
236,409
1,084,627
934,403
22,986,064

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and machinery
40,950
51,188
-
0
-
0
Motor vehicles
182,797
299,497
182,797
299,497
223,747
350,685
182,797
299,497

Freehold land and buildings were revalued at 31 March 2023 on an open market basis by the directors. The valuation takes into consideration valuations carried out by external Chartered Surveyors and Property Consultants in March 2022, which the directors consider to be the valuation as at 31 March 2023.

WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
14
Property, plant and equipment (Continued)
- 37 -

If revalued assets were stated on an historical basis rather than a fair value basis, the total amounts included would have been as follows:

2023
2022
£
£
Group
Cost
14,593,738
14,233,595
Accumulated depreciation
(35,000)
(35,000)
Carrying value
14,558,738
14,198,595
Company
Cost
17,074,124
12,425,450
Carrying value
17,074,124
12,425,450
15
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 April 2022
2,980,625
2,980,625
Foreign currency adjustments
93,225
93,225
At 31 March 2023
3,073,850
3,073,850

The fair value of the investment property has been arrived at on the basis of a valuation carried out in March 2022 by external Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis, which the directors consider to be the valuation as at 31 March 2023.

16
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
17
-
0
-
0
4,433,248
12,042,451
Unlisted investments
11
11
11
11
11
11
4,433,259
12,042,462
WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
16
Fixed asset investments (Continued)
- 38 -
Movements in non-current investments
Group
Investments
£
Cost or valuation
At 1 April 2022 and 31 March 2023
11
Carrying amount
At 31 March 2023
11
At 31 March 2022
11
Movements in non-current investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 April 2022
12,042,451
11
12,042,462
Additions
20,100
-
20,100
Transfer to goodwill
(2,901,132)
-
(2,901,132)
Other adjustments
(4,728,171)
-
(4,728,171)
At 31 March 2023
4,433,248
11
4,433,259
Carrying amount
At 31 March 2023
4,433,248
11
4,433,259
At 31 March 2022
12,042,451
11
12,042,462

As part of a group reorganisation on 1 April 2022, the trade and assets of the subsidiary companies, Wilsons Auctions (Portadown) Limited, Wilsons Auctions (Telford) Limited, Wilsons Auctions Newport Limited and Wilsons Auctions Oxford Capital Limited were hived up to the parent company Wilsons Auctions Limited.

 

Transfer to goodwill

The reorganisation resulted in a reclassification of the original investment in the subsidiary companies. £2,901,132 being the goodwill at date of acquisition was transferred from investments to goodwill.

 

Other adjustments

On the reorganisation, net assets were transferred from these subsidiaries to Wilsons Auctions Limited and dividends totalling £7,095,807 were received by Wilsons Auctions Limited from the subsidiaries. As a result the original investments in these subsidiaries have been written down to the recoverable amount, with a charge of £4,728,171 being recognised in the income statement of the company.

17
Subsidiaries

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

WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
17
Subsidiaries (Continued)
- 39 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Wilsons Auctions (Maidstone) Limited
United Kingdom
Ordinary
100.00
0
Wilsons Auctions (Portadown) Limited
United Kingdom
Ordinary
100.00
0
Wilsons Auctions (Telford) Ltd
United Kingdom
Ordinary
100.00
0
Wilsons Auctions Newport Limited
United Kingdom
Ordinary
100.00
0
Wilsons Auctions Spain S.L.
Spain
Ordinary
100.00
0
Wilsons Auctions Oxford Capital Limited
United Kingdom
Ordinary
100.00
0
Wilsons Auctions Oxford Limited
United Kingdom
Ordinary
100.00
0

The registered office of Wilsons Auctions (Maidstone) Limited and Wilsons Auctions (Telford) Ltd is Trench Lock 2, Telford, Shropshire, TF1 5YL.

 

The registered office of Wilsons Auctions (Portadown) Limited is 22 Mallusk Road, Newtownabbey, BT36 4PP.

 

The registered office of Wilsons Auctions Newport Limited is Auction House, Usk Way, Newport, Gwent, NP20 2BX.

 

The registered office of the Wilsons Auctions Spain S.L. is Urb. La Capellania 12 Marbella, Malaga, Spain.

 

The registered office of Wilsons Auctions Oxford Capital Limited and Wilsons Auctions Oxford Limited is Bromag Industrial Estate, Old A40, Witney, Oxfordshire, OX29 0SR.

18
Inventories
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
274,205
472,967
274,205
385,996
19
Trade and other receivables
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade receivables
9,034,701
8,027,811
8,341,201
5,613,009
Amounts owed by group undertakings
-
-
446,934
428,439
Other receivables
2,922,575
1,906,755
2,920,129
1,901,475
Directors' current accounts
9,745,433
6,602,001
9,745,433
6,602,001
Prepayments and accrued income
866,379
683,736
766,183
358,806
22,569,088
17,220,303
22,219,880
14,903,730
WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 40 -
20
Current liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
22
32,380
479,264
32,380
3,561,306
Obligations under finance leases
23
76,488
100,719
56,304
77,969
Trade payables
21,431,388
19,930,099
19,485,460
12,955,266
Amounts owed to group undertakings
-
0
-
0
125,010
1,253,812
Corporation tax payable
1,598,273
1,529,643
1,534,476
1,138,409
Other taxation and social security
1,157,321
972,673
973,830
556,418
Other payables
1,201,089
1,363,213
1,140,048
1,011,764
Accruals and deferred income
851,774
1,117,938
727,399
863,565
26,348,713
25,493,549
24,074,907
21,418,509
21
Non-current liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
22
-
0
2,277,425
-
0
2,277,425
Obligations under finance leases
23
128,838
204,100
128,838
185,142
128,838
2,481,525
128,838
2,462,567
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
252,327
-
252,327
22
Borrowings
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
-
0
2,735,142
-
0
2,735,142
Bank overdrafts
32,380
21,547
32,380
3,103,589
32,380
2,756,689
32,380
5,838,731
Payable within one year
32,380
479,264
32,380
3,561,306
Payable after one year
-
0
2,277,425
-
0
2,277,425

The group's bank facilities are secured on the assets and property of the group.

WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 41 -
23
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
76,488
100,719
56,304
77,969
In two to five years
128,838
204,100
128,838
185,142
205,326
304,819
185,142
263,111

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3-5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Included in finance leases are aggregate amounts of £205,326 (2022 - £304,819) for the group and £185,142 (2022 - £263,111) for the company which are secured upon the assets of the group and company.

24
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
45,310
185,463
Revaluations
962,355
962,357
1,007,665
1,147,820
Liabilities
Liabilities
2023
2022
Company
£
£
Revaluations
962,355
663,505
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 April 2022
1,147,820
663,505
Credit to profit or loss
(140,155)
(127,322)
Transfer on group reorganisation
-
426,172
Liability at 31 March 2023
1,007,665
962,355
WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
24
Deferred taxation (Continued)
- 42 -

In relation to the company and group at the balance sheet date there exists a deferred tax asset of £170,483 (2022 - £128,492) at a corporation tax rate of 25% (2022 - 25%). The deferred tax asset arises primarily in respect of decelerated capital allowances. In accordance with FRS102 and the accounting policies this asset has not been recognised.

25
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
151,481
141,309

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

 

At the year end the group had an outstanding liability of £8,073 (2022 - £7,120) in relation to the defined contribution scheme.

26
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
30
30
30
30
27
Revaluation reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
10,012,935
5,117,936
8,675,758
4,176,998
Revaluation surplus arising in the year
-
0
5,736,304
-
0
5,087,147
Deferred tax
-
(627,432)
-
(431,733)
Adjustment to deferred tax rate - property, plant and equipment
-
(193,556)
-
(136,337)
Other movements
110,169
(20,317)
110,169
(20,317)
At the end of the year
10,123,104
10,012,935
8,785,927
8,675,758
WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 43 -
28
Retained earnings
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
At the beginning of the year
22,430,375
16,821,250
23,567,686
19,495,975
Profit for the year
5,813,367
5,654,234
8,012,963
4,116,820
Other adjustments
13
-
-
(2,165,267)
-
Currency translation differences
280,210
(45,109)
280,210
(45,109)
At the end of the year
28,523,952
22,430,375
29,695,592
23,567,686
Group
Company
2023
2022
2023
2022
£
£
£
£
Non-distributable profits included above
At the beginning of the year
760,865
214,240
760,865
214,240
Non distributable profits in the year
-
546,625
-
546,625
At the beginning and end of the year
760,865
760,865
760,865
760,865
Distributable profits
27,763,087
21,669,510
28,934,727
22,806,821
29
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
373,546
277,380
351,046
133,987
Between two and five years
591,841
502,441
541,216
142,984
In over five years
320,150
387,550
320,150
-
1,285,537
1,167,371
1,212,412
276,971
Lessor

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
50,500
47,763
50,500
-
Between two and five years
35,000
-
35,000
-
85,500
47,763
85,500
-
WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 44 -
30
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of property, plant and equipment
58,232
91,649
58,232
91,649
31
Related party transactions
Remuneration of key management personnel

Key management includes the Board of Directors of the company. The compensation paid or payable to key management for employee services is shown in note 8.

Transactions with related parties
Other information

(i) Mr I Wilson and Mrs A Wilson Retirement and Death Benefit Scheme

Wilsons Auctions Limited rents premises, from which the Telford branch operates, from the pension fund of Mr I and Mrs A Wilson, directors. During the year rent of £89,000 (2022 - £89,000) was payable to Mr I & Mrs A Wilson's pension fund. At 31 March 2023 an amount of £71,366 (2022 - £147,542) was owed to the pension fund.

 

(ii) Transactions with Directors

During the year rent of £80,000 (2022 - £70,000) was paid on an arm's length basis to Mr I Wilson, a director.

32
Directors' transactions

Dividends totalling £0 (2022 - £0) were paid in the year in respect of shares held by the company's directors.

Advances or credits have been granted by the group to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Director's current account
-
6,071,542
3,397,683
(389,353)
9,079,872
Director's current account
-
530,084
173,102
(38,000)
665,186
Director's current account
-
375
-
-
375
6,602,001
3,570,785
(427,353)
9,745,433
33
Controlling party

The company is controlled by Mr I Wilson, a director of the company, who owns 90% of the issued share capital.

WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 45 -
34
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
5,813,367
5,654,234
Adjustments for:
Taxation charged
1,332,526
1,497,694
Finance costs
45,101
91,666
Investment income
(33)
(82)
Gain on disposal of property, plant and equipment
(143,811)
(43,006)
Amortisation and impairment of intangible assets
423,787
329,623
Depreciation and impairment of property, plant and equipment
1,070,493
1,033,825
Change in fair value of financial assets
-
(546,625)
Movements in working capital:
Decrease/(increase) in inventories
202,944
(165,332)
(Increase) in trade and other receivables
(2,055,548)
(3,948,249)
Increase in trade and other payables
1,113,119
10,168,684
Cash generated from operations
7,801,945
14,072,432
35
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
8,012,963
4,116,820
Adjustments for:
Taxation charged
1,239,027
994,314
Finance costs
43,720
107,880
Investment income
(7,095,840)
(75)
Gain on disposal of property, plant and equipment
(143,889)
(25,278)
Amortisation and impairment of intangible assets
197,237
65,000
Depreciation and impairment of property, plant and equipment
1,019,419
719,655
Other gains and losses
4,728,171
(546,625)
Movements in working capital:
Decrease/(increase) in inventories
202,944
(164,417)
(Increase) in trade and other receivables
(383,908)
(2,918,442)
(Decrease)/increase in trade and other payables
(1,411,933)
8,107,003
Cash generated from operations
6,407,911
10,455,835
WILSONS AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 46 -
36
Analysis of changes in net funds - group
1 April 2022
Cash flows
Exchange rate movements
31 March 2023
£
£
£
£
Cash at bank and in hand
9,433,869
(2,347,800)
113,796
7,199,865
Bank overdrafts
(21,547)
(10,833)
-
(32,380)
9,412,322
(2,358,633)
113,796
7,167,485
Borrowings excluding overdrafts
(2,735,142)
2,735,142
-
-
Obligations under finance leases
(304,819)
99,493
-
(205,326)
6,372,361
476,002
113,796
6,962,159
37
Analysis of changes in net funds/(debt) - company
1 April 2022
Cash flows
Exchange rate movements
31 March 2023
£
£
£
£
Cash at bank and in hand
2,875,447
(126,441)
113,796
2,862,802
Bank overdrafts
(3,103,589)
3,071,209
-
(32,380)
(228,142)
2,944,768
113,796
2,830,422
Borrowings excluding overdrafts
(2,735,142)
2,735,142
-
-
Obligations under finance leases
(263,111)
77,969
-
(185,142)
(3,226,395)
5,757,879
113,796
2,645,280
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.200Mrs A WilsonMr P A JohnstonMr F WilsonMs R WilsonMr G WilsonMr P ClarkinMr C WalkerMr Craig WalkerMr I C 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