REGISTERED NUMBER: 01203774 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
SHEPCOTE HOLDINGS LIMITED |
REGISTERED NUMBER: 01203774 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
SHEPCOTE HOLDINGS LIMITED |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 March 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Statement of Financial Position | 10 |
Company Statement of Financial Position | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Statement of Cash Flows | 14 |
Notes to the Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Financial Statements | 16 |
SHEPCOTE HOLDINGS LIMITED |
COMPANY INFORMATION |
for the year ended 31 March 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
GROUP STRATEGIC REPORT |
for the year ended 31 March 2023 |
The directors present their strategic report of the company and the group for the year ended 31 March 2023. |
REVIEW OF BUSINESS |
The results for the year show an increase in annual group revenue of 4.5% and a small decrease in the group's gross margin to 15.5% (2022 - 15.6%). |
After distribution, administration and finance costs, the group recorded a profit before tax of £741,964 (2022 - £970,262). The consolidated balance sheet shows an improvement of £398,251 in shareholders funds and a reduction in borrowing. |
The last financial year was another unpredictable year dominated by geopolitical uncertainty with Russia's invasion of Ukraine. Further challenges were faced following the Covid-19 Omicron variant, which caused further supply chain disruption and serious inflationary pressures. Climate change is affecting crops around the world leading to greater price fluctuations. |
Thanks must go to our Senior Management Team and all our staff for their dedication and hard work. |
Shepcote remains flexible to meet the challenges ahead with strong net assets and a varied customer base. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors believe the existing systems are appropriate to the business. No material losses or contingencies have arisen during the 12 months trading period that would require disclosure by the directors. |
The management of the business and the execution of the group's strategy are subject to a number of risks. The key business risks and uncertainties affecting the group are considered to relate to supply continuity within the sugar division. EU and world sugar prices have continued to be volatile due to availability and competition, which has a knock on effect for the group, and it seems profitability in the immediate future in this area will continue to be challenging. |
Bad debts continue to be an ongoing problem. However, because of the spread of debts within the sales ledger and solid bank facilities, the group can manage any liquidity problems. |
The group does not use financial instruments as part of its financial risk management. It is exposed to the usual credit risk and cash flow risk that is associated with selling on credit and manages this through credit control procedures. The nature of its financial instruments means they are not subject to price risk or liquidity risk. |
ON BEHALF OF THE BOARD: |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
REPORT OF THE DIRECTORS |
for the year ended 31 March 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of sugar merchanting, wholesaling of speciality foods and the manufacturing of marzipan and allied products. |
DIVIDENDS |
Information relating to dividends can be found in the Notes to the Financial Statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
The fair review of the company's business including future developments and details of the principal risks and uncertainties facing the company are included in the Strategic Report. |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SHEPCOTE HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Shepcote Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other matter |
The corresponding figures relating to the prior period were not audited. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SHEPCOTE HOLDINGS LIMITED |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SHEPCOTE HOLDINGS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory requirements applicable to the parent company and group and considered that the most significant are the Companies Act 2006, the Food Safety Act 1990 and applicable food standards, UK financial reporting standards as issued by the Financial Reporting Council, taxation legislation, employment, and health and safety legislation. |
We obtained an understanding of how the group complies with these requirements by discussions with management and those charged with governance and inquired as to any known or suspected instances of non-compliance with laws and regulations. |
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- perform analytical procedures to identify any unusual or unexpected relationships; |
- test journal entries to identify unusual transactions; |
- assess whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- investigate the rationale behind significant or unusual transactions. |
To address the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors as necessary. |
Due to 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. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SHEPCOTE HOLDINGS LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants |
12 Alma Square |
Scarborough |
North Yorkshire |
YO11 1JU |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
CONSOLIDATED INCOME STATEMENT |
for the year ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
REVENUE | 3 | 15,388,090 | 14,725,050 |
Cost of sales | 13,004,913 | 12,429,574 |
GROSS PROFIT | 2,383,177 | 2,295,476 |
Distribution costs | 698,559 | 707,062 |
Administrative expenses | 959,043 | 666,613 |
1,657,602 | 1,373,675 |
725,575 | 921,801 |
Other operating income | 4 | 11,873 | 47,701 |
OPERATING PROFIT | 6 | 737,448 | 969,502 |
Interest receivable and similar income | 4,516 | 760 |
PROFIT BEFORE TAXATION | 741,964 | 970,262 |
Tax on profit | 7 | 134,713 | 216,436 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 607,251 | 753,826 |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
for the year ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 607,251 | 753,826 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
607,251 |
753,826 |
Total comprehensive income attributable to: |
Owners of the parent | 607,251 | 753,826 |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | - | - |
Property, plant and equipment | 11 | 1,508,757 | 1,481,504 |
Investments | 12 | - | - |
1,508,757 | 1,481,504 |
CURRENT ASSETS |
Inventories | 13 | 691,815 | 868,731 |
Debtors | 14 | 1,740,731 | 1,616,108 |
Cash at bank and in hand | 1,637,781 | 1,266,012 |
4,070,327 | 3,750,851 |
CREDITORS |
Amounts falling due within one year | 15 | 1,278,589 | 1,331,073 |
NET CURRENT ASSETS | 2,791,738 | 2,419,778 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,300,495 |
3,901,282 |
PROVISIONS FOR LIABILITIES | 17 | 116,675 | 115,713 |
NET ASSETS | 4,183,820 | 3,785,569 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 28,300 | 28,300 |
Retained earnings | 19 | 4,155,520 | 3,757,269 |
SHAREHOLDERS' FUNDS | 4,183,820 | 3,785,569 |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 7 November 2023 and were signed on its behalf by: |
E R Shepherdson - Director |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Property, plant and equipment | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 448,193 | 106,817 |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 March 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 | 28,000 | 3,156,443 | 3,184,443 |
Changes in equity |
Total comprehensive income | - | 753,826 | 753,826 |
Dividends | - | (153,000 | ) | (153,000 | ) |
Issue of share capital | 300 | - | 300 |
Balance at 31 March 2022 | 28,300 | 3,757,269 | 3,785,569 |
Changes in equity |
Total comprehensive income | - | 607,251 | 607,251 |
Dividends | - | (209,000 | ) | (209,000 | ) |
Balance at 31 March 2023 | 28,300 | 4,155,520 | 4,183,820 |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 March 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
for the year ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 900,586 | 586,918 |
Tax paid | (195,543 | ) | (18,654 | ) |
Net cash from operating activities | 705,043 | 568,264 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (128,790 | ) | (37,954 | ) |
Sale of tangible fixed assets | - | 19,053 |
Interest received | 4,516 | 760 |
Net cash from investing activities | (124,274 | ) | (18,141 | ) |
Cash flows from financing activities |
Loan repayments in year | - | (50,000 | ) |
Share issue | - | 300 |
Equity dividends paid | (209,000 | ) | (153,000 | ) |
Net cash from financing activities | (209,000 | ) | (202,700 | ) |
Increase in cash and cash equivalents | 371,769 | 347,423 |
Cash and cash equivalents at beginning of year | 2 | 1,266,012 | 918,589 |
Cash and cash equivalents at end of year | 2 | 1,637,781 | 1,266,012 |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
for the year ended 31 March 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 741,964 | 970,262 |
Depreciation charges | 117,093 | 113,572 |
Loss/(profit) on disposal of fixed assets | 2,093 | (2,258 | ) |
Finance income | (4,516 | ) | (760 | ) |
856,634 | 1,080,816 |
Decrease/(increase) in inventories | 176,916 | (218,552 | ) |
Increase in trade and other debtors | (124,623 | ) | (414,617 | ) |
(Decrease)/increase in trade and other creditors | (8,341 | ) | 139,271 |
Cash generated from operations | 900,586 | 586,918 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 1,637,781 | 1,266,012 |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 1,266,012 | 918,589 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.4.22 | Cash flow | At 31.3.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,266,012 | 371,769 | 1,637,781 |
1,266,012 | 371,769 | 1,637,781 |
Total | 1,266,012 | 371,769 | 1,637,781 |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 March 2023 |
1. | STATUTORY INFORMATION |
Shepcote Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover represents goods and services supplied, excluding value added tax. Revenue is recognised to the extent that the company has obtained the right to consideration through its performance, which is at the point the goods are physically delivered to the customer, and is measured at the fair value of the right to consideration. |
Goodwill |
Goodwill arising on consolidation has been amortised over its estimated useful life of 5 years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold property | - 2.6% on cost excluding land |
Plant and machinery | - 15% on reducing balance |
Fixtures and fittings | - 15% on reducing balance |
Computer equipment | - 25% on reducing balance |
Government grants |
Grants are recognised using the accruals model. Revenue grants are recognised as other operating income on a systematic basis over the period in which the related costs for which the grants are intended to compensate are so recognised. Grants receivable as compensation for expenses or losses already incurred, or for the purpose of receiving immediate financial support, are recognised in other operating income in the period in which they become receivable. |
Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items, using the FIFO basis. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
Payments to defined contribution pension schemes are charged as an expense in the period to which they relate. |
3. | REVENUE |
The revenue and profit before taxation are attributable to the one principal activity of the group. |
An analysis of revenue by class of business is given below: |
2023 | 2022 |
£ | £ |
Sale of goods | 15,388,090 | 14,725,050 |
15,388,090 | 14,725,050 |
An analysis of revenue by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 15,388,090 | 14,725,050 |
15,388,090 | 14,725,050 |
4. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Sundry receipts | 4,888 | 5,645 |
Grants receivable | 6,985 | 42,056 |
11,873 | 47,701 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,648,074 | 1,539,158 |
Social security costs | 154,919 | 132,198 |
Other pension costs | 135,290 | 129,299 |
1,938,283 | 1,800,655 |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
5. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Production and distribution | 47 | 47 |
Administration and management | 21 | 19 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 34,346 | 29,848 |
Directors' pension contributions to money purchase schemes | 40,000 | 40,000 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 117,093 | 113,572 |
Loss/(profit) on disposal of fixed assets | 2,093 | (2,258 | ) |
Auditors' remuneration | 16,750 | 10,000 |
Foreign exchange differences | 10,856 | 3,116 |
Operating lease rentals | 17,018 | 8,801 |
Government grants receivable | (6,985 | ) | (42,056 | ) |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 133,751 | 196,232 |
Deferred tax | 962 | 20,204 |
Tax on profit | 134,713 | 216,436 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 741,964 | 970,262 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
140,973 |
184,350 |
Effects of: |
Expenses not deductible for tax purposes | (5,668 | ) | 106 |
Depreciation on non qualifying assets | 5,184 | 4,808 |
Difference in tax rates | 230 | 27,772 |
Permanent timing differences | (6,006 | ) | (600 | ) |
Total tax charge | 134,713 | 216,436 |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
The following interim dividends per share have been declared in the period: |
Ordinary A shares - £6.00 (2022 - £6.00) |
Ordinary B shares - £2.50 (2022 - £2.50) |
Ordinary C shares - £900.00 (2022 - £340.00) |
Ordinary D shares - £ Nil (2022 - £ Nil) |
Ordinary E shares - £ Nil (2022 - £ Nil) |
The directors recommend that no final dividend be paid on the above shares. |
The total distribution of dividends for the year ended 31 March 2023 will be £209,000 (2022 - £153,000). |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 | 2,000 |
AMORTISATION |
At 1 April 2022 |
and 31 March 2023 | 2,000 |
NET BOOK VALUE |
At 31 March 2023 | - |
At 31 March 2022 | - |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
11. | PROPERTY, PLANT AND EQUIPMENT |
Group |
Fixtures |
Freehold | Plant and | and | Computer |
property | machinery | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2022 | 1,290,232 | 1,140,737 | 501,790 | 56,409 | 2,989,168 |
Additions | - | 59,497 | 71,071 | 15,871 | 146,439 |
Disposals | - | - | (7,786 | ) | - | (7,786 | ) |
At 31 March 2023 | 1,290,232 | 1,200,234 | 565,075 | 72,280 | 3,127,821 |
DEPRECIATION |
At 1 April 2022 | 338,420 | 724,896 | 427,435 | 16,913 | 1,507,664 |
Charge for year | 22,805 | 67,239 | 16,485 | 10,564 | 117,093 |
Eliminated on disposal | - | - | (5,693 | ) | - | (5,693 | ) |
At 31 March 2023 | 361,225 | 792,135 | 438,227 | 27,477 | 1,619,064 |
NET BOOK VALUE |
At 31 March 2023 | 929,007 | 408,099 | 126,848 | 44,803 | 1,508,757 |
At 31 March 2022 | 951,812 | 415,841 | 74,355 | 39,496 | 1,481,504 |
Company |
Freehold |
property |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiary |
Registered office: Pexton Road, Kelleythorpe Industrial Estate, Driffield, East Yorkshire YO25 9DJ |
Nature of business: |
% |
Class of shares: | holding |
13. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Raw materials | 691,815 | 868,731 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 1,524,718 | 1,508,971 |
Amounts owed by group undertakings | - | - |
Other debtors | 65,974 | 40,000 |
VAT | 23,866 | - |
Deferred tax asset | - | - | 11,013 | 1,078 |
Prepayments and accrued income | 126,173 | 67,137 |
1,740,731 | 1,616,108 |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade creditors | 891,818 | 917,085 |
Tax | 133,751 | 195,543 |
Social security and other taxes | 55,658 | 46,653 |
VAT | - | 827 | - | - |
Other creditors | - | 3,075 |
Accruals and deferred income | 155,450 | 118,993 |
Deferred government grants | 41,912 | 48,897 |
1,278,589 | 1,331,073 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 78,609 | 78,285 |
Between one and five years | 155,561 | 218,995 |
234,170 | 297,280 |
17. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 116,675 | 115,713 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2022 | 115,713 |
Accelerated capital allowances | 11,000 |
Short term timing differences | (10,038 | ) |
Balance at 31 March 2023 | 116,675 |
Company |
Deferred |
tax |
£ |
Balance at 1 April 2022 | ( |
) |
Provided during year | ( |
) |
Balance at 31 March 2023 | ( |
) |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
18. | CALLED UP SHARE CAPITAL |
The following allotted, issued and fully paid shares totalling £28,300 were in issue during the period, remaining unchanged from 2022: |
14,000 Ordinary A shares of £1 |
14,000 Ordinary B shares of £1 |
100 Ordinary C shares of £1 |
100 Ordinary D shares of £1 |
100 Ordinary E shares of £1 |
The Ordinary A shares of £1 have full voting, dividend and capital distribution rights. |
The Ordinary B, C, D and E shares of £1 are non-voting, hold no rights to capital distribution but may be considered separately by the Directors when considering dividends from time to time. |
19. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 April 2022 | 3,757,269 |
Profit for the year | 607,251 |
Dividends | (209,000 | ) |
At 31 March 2023 | 4,155,520 |
Company |
Retained |
earnings |
£ |
At 1 April 2022 |
Profit for the year |
Dividends | ( |
) |
At 31 March 2023 |
20. | PENSION COMMITMENTS |
The company operates defined contribution pension schemes for its employees. The level of contributions made by the group to the schemes during the year was 135,290 (2022 - £129,299). Outstanding contributions due at the balance sheet date amount to £40,000 (2022 - £3,868). |
21. | CAPITAL COMMITMENTS |
2023 | 2022 |
£ | £ |
Contracted but not provided for in the |
financial statements | 26,950 | - |
SHEPCOTE HOLDINGS LIMITED (REGISTERED NUMBER: 01203774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
22. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
During the year, total dividends of £168,680 (2022 - £109,320) were paid to the directors . |
Included in other debtors is an interest free loan of £30,000 (2022 - £40,000), repayable on demand, which is due to the company from an entity that is jointly controlled by a related party. The loan arose from the disposal of an investment property at market value during a previous reporting period. |
23. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is E R Shepherdson. |