REGISTERED NUMBER: 06687485 (England and Wales) |
Sangwin Holdings Limited |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 28th February 2023 |
REGISTERED NUMBER: 06687485 (England and Wales) |
Sangwin Holdings Limited |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 28th February 2023 |
Sangwin Holdings Limited (Registered number: 06687485) |
Contents of the Consolidated Financial Statements |
for the year ended 28th February 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Statement of Comprehensive Income | 7 |
Consolidated Balance Sheet | 8 |
Company Balance Sheet | 9 |
Consolidated Statement of Changes in Equity | 10 |
Company Statement of Changes in Equity | 11 |
Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Financial Statements | 13 |
Sangwin Holdings Limited |
Company Information |
for the year ended 28th February 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
Regent's Court |
Princess Street |
Hull |
East Yorkshire |
HU2 8BA |
Sangwin Holdings Limited (Registered number: 06687485) |
Group Strategic Report |
for the year ended 28th February 2023 |
The directors present their strategic report of the company and the group for the year ended 28th February 2023. |
The principal activities of the Group are educational furniture manufacturing and installation, tarmac surfacing, plant hire and machine moving. |
REVIEW OF BUSINESS |
The Group produced a pleasing result in what ended up being a challenging trading year and this was particularly evident for Sangwin Educational Furniture Ltd. The rapid increase in raw material costs and wage inflation provided a difficult scenario on contracts that the business had already committed to and this wasn't helped by its customers suffering contractual delays which meant a significant number of projects getting put back into late 2023. The company mitigated these difficulties with a reduction in overheads but with a strong forward order book it took the decision to stand the additional costs incurred in 2022. Notwithstanding the above-mentioned challenges, the company produced a good result and it expects to grow the business back to previous levels in 2023/24. |
Sangwin Plant Hire Ltd produced another good result for the year with turnover up 9% but again inflation proved difficult to maintain costs which rose by 12%. Plant Hire figures were down on last year whilst the specialist machine moving and project management of lift and shift work produced another good result similar to 2022. |
Sangwin Surfacing Ltd also produced a good result in a very challenging market despite a 20% fall in turnover and a shift in the type of projects sizes completed. |
The business continues to look ahead with investment in plant, machinery and extensions to the factory but is also mindful in the general slowdown of the economy as interest rates remain high. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The key risks of the business continue to be the demand from its customers and the financial strength of its customers. The business is also mindful of the difficulties in recruiting skilled staff in order to capitalise on opportunities to grow the business. It also reviews its subcontractors and supply chain on an ongoing basis to ensure safety, skills and financial stability are being met. |
KEY PERFORMANCE INDICATORS |
The businesses are set targets each year. Monitoring of the targets and performance is carried out through internal management meetings and analysis of the accounts and cash flows and ongoing assessment of the market place to identify changes and risks. External monitoring comes from third party assessment to Quality, Health, Safety and Environment, Achilles and also FORS transport assessment. The company is also registered to Builders Profile. |
ON BEHALF OF THE BOARD: |
30th August 2023 |
Sangwin Holdings Limited (Registered number: 06687485) |
Report of the Directors |
for the year ended 28th February 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 28th February 2023. |
DIVIDENDS |
Interim dividends totalling £491,048 (2022: £476,553) were paid during the year, as disclosed in note 9. |
The directors recommend that no final dividend be paid on any shares. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st March 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
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. |
AUDITORS |
The auditors, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Sangwin Holdings Limited |
Opinion |
We have audited the financial statements of Sangwin Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28th February 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 28th February 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 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 |
Sangwin 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 Statement of Directors' Responsibilities set out on page three, 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. |
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: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the parent company and the group, including the Companies Act 2006, tax legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence. |
We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management 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: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
Report of the Independent Auditors to the Members of |
Sangwin Holdings Limited |
In response to 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; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC, relevant regulators and the parent company and group's legal advisors. |
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. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
Statutory Auditor |
Regent's Court |
Princess Street |
Hull |
East Yorkshire |
HU2 8BA |
Sangwin Holdings Limited (Registered number: 06687485) |
Consolidated Statement of Comprehensive Income |
for the year ended 28th February 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 19,434,561 | 21,954,384 |
Cost of sales | 14,413,206 | 15,715,104 |
GROSS PROFIT | 5,021,355 | 6,239,280 |
Administrative expenses | 3,866,437 | 3,777,742 |
1,154,918 | 2,461,538 |
Other operating income | 99,045 | 87,443 |
OPERATING PROFIT | 5 | 1,253,963 | 2,548,981 |
Interest payable and similar expenses | 6 | 44,437 | 69,105 |
PROFIT BEFORE TAXATION | 1,209,526 | 2,479,876 |
Tax on profit | 7 | 232,025 | 606,971 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
977,501 |
1,872,905 |
Profit attributable to: |
Owners of the parent | 977,501 | 1,872,905 |
Total comprehensive income attributable to: |
Owners of the parent | 977,501 | 1,872,905 |
Sangwin Holdings Limited (Registered number: 06687485) |
Consolidated Balance Sheet |
28th February 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 5,055,538 | 5,503,378 |
Investments | 11 | - | - |
Investment property | 12 | 704,697 | 695,827 |
5,760,235 | 6,199,205 |
CURRENT ASSETS |
Stocks | 13 | 133,510 | 96,237 |
Debtors | 14 | 3,550,798 | 2,953,751 |
Investments | 15 | 127,769 | 12,349 |
Cash at bank and in hand | 4,015,025 | 4,856,591 |
7,827,102 | 7,918,928 |
CREDITORS |
Amounts falling due within one year | 16 | 4,022,219 | 4,452,758 |
NET CURRENT ASSETS | 3,804,883 | 3,466,170 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
9,565,118 |
9,665,375 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(465,400 |
) |
(972,286 |
) |
PROVISIONS FOR LIABILITIES | 20 | (597,693 | ) | (677,517 | ) |
NET ASSETS | 8,502,025 | 8,015,572 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 31,463 | 31,463 |
Retained earnings | 22 | 8,470,562 | 7,984,109 |
SHAREHOLDERS' FUNDS | 8,502,025 | 8,015,572 |
The financial statements were approved by the Board of Directors and authorised for issue on 30th August 2023 and were signed on its behalf by: |
N J Sangwin - Director |
Sangwin Holdings Limited (Registered number: 06687485) |
Company Balance Sheet |
28th February 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Debtors | 14 |
Investments | 15 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 20 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 923,681 | 1,274,620 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Sangwin Holdings Limited (Registered number: 06687485) |
Consolidated Statement of Changes in Equity |
for the year ended 28th February 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st March 2021 | 31,463 | 6,587,757 | 6,619,220 |
Changes in equity |
Dividends | - | (476,553 | ) | (476,553 | ) |
Total comprehensive income | - | 1,872,905 | 1,872,905 |
Balance at 28th February 2022 | 31,463 | 7,984,109 | 8,015,572 |
Changes in equity |
Dividends | - | (491,048 | ) | (491,048 | ) |
Total comprehensive income | - | 977,501 | 977,501 |
Balance at 28th February 2023 | 31,463 | 8,470,562 | 8,502,025 |
Sangwin Holdings Limited (Registered number: 06687485) |
Company Statement of Changes in Equity |
for the year ended 28th February 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st March 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 28th February 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 28th February 2023 |
Sangwin Holdings Limited (Registered number: 06687485) |
Consolidated Cash Flow Statement |
for the year ended 28th February 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 27 | 1,485,469 | 2,645,866 |
Interest paid | - | (2,522 | ) |
Interest element of hire purchase payments paid |
(44,437 |
) |
(66,583 |
) |
Tax paid | (543,839 | ) | (448,678 | ) |
Net cash from operating activities | 897,193 | 2,128,083 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (353,868 | ) | (290,921 | ) |
Purchase of investment property | (8,870 | ) | - |
Sale of tangible fixed assets | 3,800 | 69,923 |
Sale of investment property | - | 241,873 |
Purchase of current asset investments | (125,000 | ) | - |
Net cash from investing activities | (483,938 | ) | 20,875 |
Cash flows from financing activities |
Capital repayments in year | (763,773 | ) | (849,503 | ) |
Equity dividends paid | (491,048 | ) | (476,553 | ) |
Net cash from financing activities | (1,254,821 | ) | (1,326,056 | ) |
(Decrease)/increase in cash and cash equivalents | (841,566 | ) | 822,902 |
Cash and cash equivalents at beginning of year |
28 |
4,856,591 |
4,033,689 |
Cash and cash equivalents at end of year |
28 |
4,015,025 |
4,856,591 |
Sangwin Holdings Limited (Registered number: 06687485) |
Notes to the Consolidated Financial Statements |
for the year ended 28th February 2023 |
1. | STATUTORY INFORMATION |
Sangwin Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Basis of consolidation |
The group financial statements consolidate the financial statements of Sangwin Holdings Limited and all its subsidiary undertakings drawn up to 28 February 2023. No statement of comprehensive income is presented for Sangwin Holdings Limited as permitted by Section 408 of the Companies Act 2006. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. In the case of contract works, turnover is calculated on the basis of value of work executed during the year. |
Tangible fixed assets |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: |
Freehold property | - between 4% and 5% on cost |
Plant and machinery | - between 8% and 50% on cost |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks and work in progress |
Stock is stated at the lower of cost and net realisable value. |
In the case of raw materials and consumable stores, cost means purchase price including transport and handling costs, less trade discounts, calculated on a first in first out basis. |
Net realisable value means estimated selling price less all further costs to completion and all costs to be incurred in marketing, selling and distribution. |
Contract work in progress included in debtors is stated at net realisable value. Cumulative turnover (i.e. the total turnover recorded in respect of the contract in the profit and loss accounts of all accounting periods since inception of the contract) is compared with total payments on account. If turnover exceeds payments on account an "amount recoverable on contracts" is established and separately disclosed within debtors. If payments on account are greater than turnover to date, the excess is classified within creditors. |
Sangwin Holdings Limited (Registered number: 06687485) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful life or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals payable and receivable under operating leases are charged to the statement of comprehensive income on a straight line basis over the period of the lease. |
Pensions |
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. |
The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. |
Investments |
The investments in subsidiary undertakings are stated at the cost of acquisition. |
Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
The turnover is wholly attributable to sales within the United Kingdom. |
Sangwin Holdings Limited (Registered number: 06687485) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 4,808,882 | 4,771,945 |
Social security costs | 630,085 | 561,711 |
Other pension costs | 189,454 | 188,385 |
5,628,421 | 5,522,041 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administration | 45 | 47 |
Operations | 66 | 66 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 299,279 | 303,508 |
Directors' pension contributions to money purchase schemes | 7,744 | 6,438 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 197,837 | 256,803 |
Pension contributions to money purchase schemes | 5,712 | 5,436 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 187,163 | 168,266 |
Depreciation - owned assets | 318,885 | 335,351 |
Depreciation - assets on hire purchase contracts | 482,820 | 499,637 |
Profit on disposal of fixed assets | (3,797 | ) | (60,538 | ) |
Auditors' remuneration | 27,240 | 26,526 |
Job retention scheme | - | (30,302 | ) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Corporation tax interest | - | 2,522 |
Hire purchase | 44,437 | 66,583 |
44,437 | 69,105 |
Sangwin Holdings Limited (Registered number: 06687485) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
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 | 311,849 | 482,819 |
Deferred tax: |
Origination and reversal of timing differences | (78,818 | ) | (19,788 | ) |
Effect of change in tax rate | (1,006 | ) | 143,940 |
Total deferred tax | (79,824 | ) | 124,152 |
Tax on profit | 232,025 | 606,971 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 1,209,526 | 2,479,876 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
229,810 |
471,176 |
Effects of: |
Expenses not deductible for tax purposes | 1,672 | 3,190 |
Income not taxable for tax purposes | (1,370 | ) | (1,370 | ) |
Chargeable gains | - | 6,702 |
Profit on disposal of non qualifying assets | - | (7,514 | ) |
Depreciation on non qualifying assets | 9,313 | 8,951 |
Change in deferred tax rate | (493 | ) | 143,940 |
Enhanced tax allowances | (6,907 | ) | (18,104 | ) |
Total tax charge | 232,025 | 606,971 |
UK corporation tax has been charged at 19% (2022: 19%). |
In the Spring Budget 2021, the Government announced that from 1 April 2023 the corporation tax rate will increase to 25%. Accordingly, the deferred tax provision has been based on this rate. |
The expected reversal of deferred tax liabilities in the year to 28 February 2024 is £96,464. This is due to the reversal of accelerated capital allowances and other short term timing differences. |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
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. |
Sangwin Holdings Limited (Registered number: 06687485) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £0.01 each |
Interim | 491,048 | 476,553 |
10. | TANGIBLE FIXED ASSETS |
Group |
Plant, |
Asset | machinery |
Freehold | under | and |
property | construction | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1st March 2022 | 2,109,469 | 46,686 | 8,804,489 | 10,960,644 |
Additions | 247,074 | - | 153,480 | 400,554 |
Disposals | - | - | (26,223 | ) | (26,223 | ) |
Reclassification | - | (46,686 | ) | - | (46,686 | ) |
At 28th February 2023 | 2,356,543 | - | 8,931,746 | 11,288,289 |
DEPRECIATION |
At 1st March 2022 | 408,102 | - | 5,049,164 | 5,457,266 |
Charge for year | 50,172 | - | 751,533 | 801,705 |
Eliminated on disposal | - | - | (26,220 | ) | (26,220 | ) |
At 28th February 2023 | 458,274 | - | 5,774,477 | 6,232,751 |
NET BOOK VALUE |
At 28th February 2023 | 1,898,269 | - | 3,157,269 | 5,055,538 |
At 28th February 2022 | 1,701,367 | 46,686 | 3,755,325 | 5,503,378 |
The net book value of fixed assets includes £2,641,844 (2022: £3,124,664) in respect of assets held under hire purchase contracts. |
Sangwin Holdings Limited (Registered number: 06687485) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Plant, |
Asset | machinery |
Freehold | under | and |
property | construction | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1st March 2022 |
Additions |
Reclassification | ( |
) | ( |
) |
At 28th February 2023 |
DEPRECIATION |
At 1st March 2022 |
Charge for year |
At 28th February 2023 |
NET BOOK VALUE |
At 28th February 2023 |
At 28th February 2022 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st March 2022 |
and 28th February 2023 |
NET BOOK VALUE |
At 28th February 2023 |
At 28th February 2022 |
The subsidiary undertakings, all wholly owned, at 28 February 2023 were: |
Name of Company | Nature of Business |
Sangwin Plant Hire Limited | Hire of mobile cranes, general plant and machinery moving |
Sangwin Surfacing Limited | Tarmacadam surfacing |
Sangwin Educational Furniture Limited | Manufacture and installation of educational furniture |
Sangwin Limited | Dormant company |
The registered office of these companies is the same as that displayed on the Company Information on page 1 of these accounts. |
Sangwin Holdings Limited (Registered number: 06687485) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
12. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1st March 2022 | 695,827 |
Additions | 8,870 |
At 28th February 2023 | 704,697 |
NET BOOK VALUE |
At 28th February 2023 | 704,697 |
At 28th February 2022 | 695,827 |
Company |
Total |
£ |
FAIR VALUE |
At 1st March 2022 |
Additions |
At 28th February 2023 |
NET BOOK VALUE |
At 28th February 2023 |
At 28th February 2022 |
In the opinion of the directors, the above amount is considered to be the market value of the property at the year end. |
13. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 133,510 | 96,237 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 932,821 | 1,196,356 |
Amounts recoverable on contract | 2,093,490 | 997,065 |
Other debtors | 485,105 | 743,040 |
Amounts owed by group undertakings | - | - | - | 1,559,362 |
Tax | 177 | - |
Prepayments | 39,205 | 17,290 |
3,550,798 | 2,953,751 |
Sangwin Holdings Limited (Registered number: 06687485) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
15. | CURRENT ASSET INVESTMENTS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Listed investments | 127,769 | 12,349 | 127,769 | 12,349 |
Market value of listed investments at 28th February 2023 held by the group and the company - £ (127,769) (2022 - £ (12,349) ). |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts | - | - |
Hire purchase contracts (see note 18) | 522,386 | 786,485 |
Payments on account | 801,320 | 1,032,806 |
Trade creditors | 1,592,770 | 1,017,493 |
Corporation tax | 43,052 | 274,865 |
Social security and other taxes | 133,412 | 240,937 |
VAT | - | - | 7,636 | 8,417 |
Other creditors | 555,732 | 678,952 |
Amounts owed to group undertaking | - | - | 2,176,646 | - |
Accrued expenses | 366,336 | 414,009 |
Deferred government grants | 7,211 | 7,211 |
4,022,219 | 4,452,758 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 18) | 458,202 | 957,876 |
Deferred government grants | 7,198 | 14,410 |
465,400 | 972,286 |
Sangwin Holdings Limited (Registered number: 06687485) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase | contracts |
2023 | 2022 |
£ | £ |
Gross obligations repayable: |
Within one year | 543,214 | 829,849 |
Between one and five years | 471,016 | 989,417 |
1,014,230 | 1,819,266 |
Finance charges repayable: |
Within one year | 20,828 | 43,364 |
Between one and five years | 12,814 | 31,541 |
33,642 | 74,905 |
Net obligations repayable: |
Within one year | 522,386 | 786,485 |
Between one and five years | 458,202 | 957,876 |
980,588 | 1,744,361 |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 112,547 | 145,225 |
Between one and five years | 115,358 | 185,288 |
227,905 | 330,513 |
Company |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
19. | SECURED DEBTS |
The company's overdraft is secured by a fixed and floating charge over all of the assets of the group. |
Sangwin Holdings Limited (Registered number: 06687485) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
20. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax |
Other timing differences | - | (30,226 | ) | - | - |
Accelerated capital allowances | 597,693 | 707,743 | 106,285 | 77,763 |
597,693 | 677,517 | 106,285 | 77,763 |
Group |
Deferred |
tax |
£ |
Balance at 1st March 2022 | 677,517 |
Charged during the year | (79,824 | ) |
Balance at 28th February 2023 | 597,693 |
Company |
Deferred |
tax |
£ |
Balance at 1st March 2022 |
Credited during the year | 28,522 |
Balance at 28th February 2023 |
Sangwin Holdings Limited (Registered number: 06687485) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
21. | CALLED UP SHARE CAPITAL |
Alloted, issued and fully paid: |
Ordinary shares of 1p each |
2023 | 2022 |
£ | £ |
A Ordinary | 20,446 | 20,446 |
B Ordinary | 6,805 | 6,805 |
C Ordinary | 3,786 | 3,786 |
D Ordinary | 376 | 376 |
E Ordinary | 10 | 10 |
F Ordinary | 10 | 10 |
G Ordinary | 10 | 10 |
H Ordinary | 10 | 10 |
I Ordinary | 10 | 10 |
31,463 | 31,463 |
The A, B, C and D ordinary shares rank parri passu in all respects except that a dividend may be declared on one class of shares to the exclusion of the other, and that dividends at different rates may be declared on respective classes of shares. |
The E, F, G, H and I ordinary shares carry no rights to attend or vote at meetings of the company. These shares only rank for dividends expressly resolved to be paid by ordinary resolution of the company. On a return of assets on liquidation, capital reduction or otherwise, the holders of the A, B, C and D ordinary shares will receive an amount in proportion to their shareholding, however E, F, G, H and I ordinary shares are entitled to only 1p per share. |
22. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1st March 2022 | 7,984,109 |
Profit for the year | 977,501 |
Dividends | (491,048 | ) |
At 28th February 2023 | 8,470,562 |
Company |
Retained |
earnings |
£ |
At 1st March 2022 |
Profit for the year |
Dividends | ( |
) |
At 28th February 2023 |
The retained earnings represent cumulative profits and losses net of dividends. |
Sangwin Holdings Limited (Registered number: 06687485) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
23. | PENSION COMMITMENTS |
The charge for the year for existing and previous employees was £189,454 (2022: £188,385). At 28 February 2023 contributions of £115,520 (2022: £2,349) were outstanding. |
24. | CAPITAL COMMITMENTS |
2023 | 2022 |
£ | £ |
Contracted but not provided for in the |
financial statements | - | 76,602 |
25. | RELATED PARTY DISCLOSURES |
In 2020, the company advanced £149,500 to an individual connected to a shareholder of the company in the form of a loan arrangement. At the year end, £131,750 (2022: £139,550) remained outstanding. |
26. | ULTIMATE CONTROLLING PARTY |
No one individual has ultimate control of the group. |
27. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 1,209,526 | 2,479,876 |
Depreciation charges | 801,705 | 834,988 |
Profit on disposal of fixed assets | (3,797 | ) | (60,538 | ) |
(Gain)/Loss on revaluation of investment | 9,580 | - |
Government grants | (7,212 | ) | (7,212 | ) |
Finance costs | 44,437 | 69,105 |
2,054,239 | 3,316,219 |
Increase in stocks | (37,273 | ) | (14,506 | ) |
(Increase)/decrease in trade and other debtors | (596,870 | ) | 310,174 |
Increase/(decrease) in trade and other creditors | 65,373 | (966,021 | ) |
Cash generated from operations | 1,485,469 | 2,645,866 |
28. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 28th February 2023 |
28.2.23 | 1.3.22 |
£ | £ |
Cash and cash equivalents | 4,015,025 | 4,856,591 |
Year ended 28th February 2022 |
28.2.22 | 1.3.21 |
£ | £ |
Cash and cash equivalents | 4,856,591 | 4,033,689 |
Sangwin Holdings Limited (Registered number: 06687485) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 28th February 2023 |
29. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.3.22 | Cash flow | At 28.2.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,856,591 | (841,566 | ) | 4,015,025 |
4,856,591 | (841,566 | ) | 4,015,025 |
Liquid resources |
Current asset investments | 12,349 | 115,420 | 127,769 |
12,349 | 115,420 | 127,769 |
Debt |
Finance leases | (1,744,361 | ) | 763,773 | (980,588 | ) |
(1,744,361 | ) | 763,773 | (980,588 | ) |
Total | 3,124,579 | 37,627 | 3,162,206 |
30. | MAJOR NON-CASH TRANSACTIONS |
During the year the group entered into hire purchase arrangements in respect of assets with a total capital value at the inception of the contracts of £Nil (2022: £333,675). |