IRIS Accounts Production v23.3.1.45 06687485 Board of Directors 28.2.23 1.3.22 28.2.23 28.2.23 civil engineering, building, educational furniture, surfacing, plant hire and the manufacture of precast concrete products. true true false true true false false true true true false Fair value model iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh066874852022-02-28066874852023-02-28066874852022-03-012023-02-28066874852021-02-28066874852021-03-012022-02-28066874852022-02-2806687485ns10:Originalns15:EnglandWales2022-03-012023-02-2806687485ns10:Originalns14:Euro2022-03-012023-02-2806687485ns10:Originalns10:Director12022-03-012023-02-2806687485ns10:Original2022-03-012023-02-2806687485ns10:Originalns10:Director22022-03-012023-02-2806687485ns10:Originalns10:Consolidated2023-02-2806687485ns10:Original2023-02-2806687485ns10:Originalns10:ConsolidatedGroupCompanyAccounts2022-03-012023-02-2806687485ns10:Originalns10:PrivateLimitedCompanyLtd2022-03-012023-02-2806687485ns10:Originalns10:Consolidatedns10:FRS1022022-03-012023-02-2806687485ns10:Originalns10:Consolidatedns10:Audited2022-03-012023-02-2806687485ns10:Originalns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-03-012023-02-2806687485ns10:LargeMedium-sizedCompaniesRegimeForAccountsns10:Original2022-03-012023-02-2806687485ns10:Originalns10:Consolidatedns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-03-012023-02-2806687485ns10:LargeMedium-sizedCompaniesRegimeForAccountsns10:Originalns10:Consolidated2022-03-012023-02-2806687485ns10:Originalns10:FullAccounts2022-03-012023-02-2806687485ns10:Originalns10:Consolidated2022-03-012023-02-2806687485ns10:CompanySecretary1ns10:Original2022-03-012023-02-2806687485ns10:Originalns10:RegisteredOffice2022-03-012023-02-2806687485ns10:Originalns10:Consolidated2021-03-012022-02-2806687485ns10:Original2022-02-2806687485ns10:Originalns5:CurrentFinancialInstruments2023-02-2806687485ns10:Originalns5:CurrentFinancialInstruments2022-02-2806687485ns5:ShareCapitalns10:Original2023-02-2806687485ns5:ShareCapitalns10:Original2022-02-2806687485ns10:Originalns5:RetainedEarningsAccumulatedLosses2023-02-2806687485ns10:Originalns5:RetainedEarningsAccumulatedLosses2022-02-2806687485ns5:ShareCapitalns10:Original2021-02-2806687485ns10:Originalns5:RetainedEarningsAccumulatedLosses2021-02-2806687485ns10:Original2021-02-2806687485ns10:Originalns5:RetainedEarningsAccumulatedLosses2021-03-012022-02-2806687485ns10:Original2021-03-012022-02-2806687485ns10:Originalns5:RetainedEarningsAccumulatedLosses2022-03-012023-02-2806687485ns10:Originalns5:LandBuildings2022-02-2806687485ns5:LongLeaseholdAssetsns10:Originalns5:LandBuildings2022-02-2806687485ns10:Originalns5:PlantMachinery2022-02-2806687485ns10:Original2022-02-2806687485ns10:Originalns5:LandBuildings2022-03-012023-02-2806687485ns5:LongLeaseholdAssetsns10:Originalns5:LandBuildings2022-03-012023-02-2806687485ns10:Originalns5:PlantMachinery2022-03-012023-02-2806687485ns10:Originalns5:LandBuildings2023-02-2806687485ns5:LongLeaseholdAssetsns10:Originalns5:LandBuildings2023-02-2806687485ns10:Originalns5:PlantMachinery2023-02-2806687485ns10:Originalns5:LandBuildings2022-02-2806687485ns5:LongLeaseholdAssetsns10:Originalns5:LandBuildings2022-02-2806687485ns10:Originalns5:PlantMachinery2022-02-2806687485ns10:Originalns5:CostValuation2022-02-2806687485ns10:Originalns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-02-2806687485ns10:Originalns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-02-2806687485ns10:Originalns5:WithinOneYear2023-02-2806687485ns10:Originalns5:WithinOneYear2022-02-2806687485ns5:BetweenOneFiveYearsns10:Original2023-02-2806687485ns5:BetweenOneFiveYearsns10:Original2022-02-2806687485ns10:Originalns5:AllPeriods2023-02-2806687485ns10:Originalns5:AllPeriods2022-02-2806687485ns10:Originalns5:DeferredTaxation2022-02-2806687485ns10:Originalns5:DeferredTaxation2023-02-2806687485ns10:Originalns5:RetainedEarningsAccumulatedLosses2022-02-28
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: N J Sangwin
R Tolson





SECRETARY: R Tolson





REGISTERED OFFICE: Dansom Lane South
Hull
East Yorkshire
HU8 7LN





REGISTERED NUMBER: 06687485 (England and Wales)





AUDITORS: Smailes Goldie
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:





N J Sangwin - Director


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.

N J Sangwin
R Tolson

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:





R Tolson - Director


30th August 2023

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.




Michael Stocks ACA (Senior Statutory Auditor)
for and on behalf of Smailes Goldie
Chartered Accountants
Statutory Auditor
Regent's Court
Princess Street
Hull
East Yorkshire
HU2 8BA

30th August 2023

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 977,501 1,872,905

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 1,904,635 1,760,470
Investments 11 620,100 620,100
Investment property 12 704,697 695,827
3,229,432 3,076,397

CURRENT ASSETS
Debtors 14 226,959 2,098,191
Investments 15 127,769 12,349
Cash at bank and in hand 4,002,787 2,779
4,357,515 2,113,319
CREDITORS
Amounts falling due within one year 16 2,927,732 991,656
NET CURRENT ASSETS 1,429,783 1,121,663
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,659,215

4,198,060

PROVISIONS FOR LIABILITIES 20 106,285 77,763
NET ASSETS 4,552,930 4,120,297

CAPITAL AND RESERVES
Called up share capital 21 31,463 31,463
Retained earnings 22 4,521,467 4,088,834
SHAREHOLDERS' FUNDS 4,552,930 4,120,297

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 30th August 2023 and were signed on its behalf by:





N J Sangwin - Director


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 31,463 3,290,767 3,322,230

Changes in equity
Dividends - (476,553 ) (476,553 )
Total comprehensive income - 1,274,620 1,274,620
Balance at 28th February 2022 31,463 4,088,834 4,120,297

Changes in equity
Dividends - (491,048 ) (491,048 )
Total comprehensive income - 923,681 923,681
Balance at 28th February 2023 31,463 4,521,467 4,552,930

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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

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
111 113

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 2,109,469 46,686 136,454 2,292,609
Additions 247,074 - 2,848 249,922
Reclassification - (46,686 ) - (46,686 )
At 28th February 2023 2,356,543 - 139,302 2,495,845
DEPRECIATION
At 1st March 2022 407,704 - 124,435 532,139
Charge for year 50,172 - 8,899 59,071
At 28th February 2023 457,876 - 133,334 591,210
NET BOOK VALUE
At 28th February 2023 1,898,667 - 5,968 1,904,635
At 28th February 2022 1,701,765 46,686 12,019 1,760,470

11. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1st March 2022
and 28th February 2023 620,100
NET BOOK VALUE
At 28th February 2023 620,100
At 28th February 2022 620,100


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 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

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 485,105 743,040 139,800 473,585
Amounts owed by group undertakings - - - 1,559,362
Tax 177 - 47,954 47,954
Prepayments 39,205 17,290 39,205 17,290
3,550,798 2,953,751 226,959 2,098,191

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 - - 339,890 560,053
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 65,579 43,153
Corporation tax 43,052 274,865 - -
Social security and other taxes 133,412 240,937 7,585 7,107
VAT - - 7,636 8,417
Other creditors 555,732 678,952 - -
Amounts owed to group undertaking - - 2,176,646 -
Accrued expenses 366,336 414,009 330,396 372,926
Deferred government grants 7,211 7,211 - -
4,022,219 4,452,758 2,927,732 991,656

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 41,944 44,726
Between one and five years 37,353 59,647
79,297 104,373

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 77,763
Credited during the year 28,522
Balance at 28th February 2023 106,285

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 4,088,834
Profit for the year 923,681
Dividends (491,048 )
At 28th February 2023 4,521,467

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).