Company registration number 01566195 (England and Wales)
ARTHUR SPRIGGS & SONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
ARTHUR SPRIGGS & SONS LIMITED
COMPANY INFORMATION
Directors
Mr A J Spriggs
Mr C Spriggs
Mr D Spriggs
Mr P Spriggs
Secretary
Mr D Spriggs
Company number
01566195
Registered office
274 Wellingborough Road
Rushden
Northamptonshire
United Kingdom
NN10 9XP
Auditor
Azets Audit Services
St Davids Court
Union Street
Wolverhampton
West Midlands
United Kingdom
WV1 3JE
ARTHUR SPRIGGS & SONS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
ARTHUR SPRIGGS & SONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

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

Business review

The main business is that of haulage contractor with a Commercial Vehicle Service & Repairer Garage at the Tewkesbury Depot.

 

The profit for the period, after taxation, amounted to £2,876 (2022: £33,851).

 

The directors have not recommended a dividend.

Principal risks and uncertainties

The management of the business and the execution of the company's strategy are subject to the following risks.

The key business risks and uncertainties affecting the company's strategy are considered to relate to customer retention, the maintaining of haulage rates and the exposure to fuel price increases.

There are no matters concerning financial risk which are material for the assessment of the assets, liabilities, financial position or result of the company.

Financial key performance indicators

The directors monitor its performance by reference to the following key performance indicators:

 

Turnover - The turnover for the period was £8,631,539 (2022: £8,288,772).

 

Operating profit - The operating profit for the period was £46,242 (2022: £45,730).

Outlook

The management are now reporting on the operating service relating to the business that is 'haulage contractors' at both Rushden and Tewkesbury sites. Rushden made a considerable loss during the year to March 2023 whereas Tewkesbury operation was profitable.

 

During 2022/2023, Tewkesbury site have continued to develop the Commercial Vehicle Services & Repairs Division with increasing turnover. The profitability of this operation is positive for the coming year.

 

The directors are undertaking a profitability exercise and will be reviewing the future direction of the business.

On behalf of the board

Mr C Spriggs
Director
22 December 2023
ARTHUR SPRIGGS & SONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

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

Principal activities

The principal activity of the company continued to be that of haulage contractors and commercial vehicle repairers.

Results and dividends

The results for the year are set out on page 7.

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

Directors

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

Mr A J Spriggs
Mr C Spriggs
Mr D Spriggs
Mr P Spriggs
Auditor

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

Statement of disclosure to auditor

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

On behalf of the board
Mr C Spriggs
Director
22 December 2023
ARTHUR SPRIGGS & SONS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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

ARTHUR SPRIGGS & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARTHUR SPRIGGS & SONS LIMITED
- 4 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

ARTHUR SPRIGGS & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARTHUR SPRIGGS & SONS LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

ARTHUR SPRIGGS & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARTHUR SPRIGGS & SONS LIMITED
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Lee Meredith BFP ACA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
23 December 2023
Chartered Accountants
Statutory Auditor
St Davids Court
Union Street
Wolverhampton
West Midlands
United Kingdom
WV1 3JE
ARTHUR SPRIGGS & SONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
8,631,539
8,288,772
Cost of sales
(6,474,848)
(6,379,586)
Gross profit
2,156,691
1,909,186
Administrative expenses
(2,110,449)
(1,863,456)
Operating profit
4
46,242
45,730
Interest receivable and similar income
7
1,604
94
Interest payable and similar expenses
8
(11,885)
(15,175)
Amounts written off investments
9
(33,085)
3,202
Profit before taxation
2,876
33,851
Tax on profit
10
-
0
-
0
Profit for the financial year
2,876
33,851

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

 

There was no other comprehensive income for 2023 (2022 - £Nil).

The notes on pages 11 to 23 form part of these financial statements.

ARTHUR SPRIGGS & SONS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,470,536
3,255,720
Current assets
Stocks
12
591,077
724,946
Debtors
14
1,290,032
1,569,115
Investments
15
398,955
432,039
Cash at bank and in hand
465,259
337,819
2,745,323
3,063,919
Creditors: amounts falling due within one year
16
(1,143,155)
(1,235,654)
Net current assets
1,602,168
1,828,265
Total assets less current liabilities
5,072,704
5,083,985
Creditors: amounts falling due after more than one year
17
-
0
(14,157)
Net assets
5,072,704
5,069,828
Capital and reserves
Called up share capital
21
8,000
8,000
Capital redemption reserve
2,000
2,000
Profit and loss reserves
5,062,704
5,059,828
Total equity
5,072,704
5,069,828
The financial statements were approved by the board of directors and authorised for issue on 22 December 2023 and are signed on its behalf by:
Mr C Spriggs
Director
Company Registration No. 01566195

The notes on pages 11 to 23 form part of these financial statements.

ARTHUR SPRIGGS & SONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
10,000
-
0
5,285,977
5,295,977
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
33,851
33,851
Redemption of shares
21
(2,000)
2,000
(260,000)
(260,000)
Balance at 31 March 2022
8,000
2,000
5,059,828
5,069,828
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
2,876
2,876
Balance at 31 March 2023
8,000
2,000
5,062,704
5,072,704

The notes on pages 11 to 23 form part of these financial statements.

ARTHUR SPRIGGS & SONS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
25
677,223
(67,589)
Interest paid
(11,885)
(15,175)
Net cash inflow/(outflow) from operating activities
665,338
(82,764)
Investing activities
Purchase of tangible fixed assets
(297,354)
(187,449)
Proceeds on disposal of tangible fixed assets
110,750
73,374
Receipts arising from loans made
4,769
-
0
Interest received
1,604
94
Net cash used in investing activities
(180,231)
(113,981)
Financing activities
Redemption of shares
-
0
(260,000)
Payment of finance leases obligations
(357,667)
(135,859)
Net cash used in financing activities
(357,667)
(395,859)
Net increase/(decrease) in cash and cash equivalents
127,440
(592,604)
Cash and cash equivalents at beginning of year
337,819
930,423
Cash and cash equivalents at end of year
465,259
337,819

The notes on pages 11 to 23 form part of these financial statements.

ARTHUR SPRIGGS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
1
Accounting policies
Company information

Arthur Spriggs & Sons Limited is a private company, limited by shares, incorporated in England & Wales and domiciled in England.

 

The registered office is 274 Wellingborough Road, Rushden, Northants, NN10 9XP and the registered number is 01566195.

 

The principal activity of the company continued to be that of haulage contractors and commercial vehicle repairers.

1.1
Accounting convention

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

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

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have considered cash flow forecasts for a period of twelve months from the date of approval of the financial statements and in addition to cash at bank, the company also has investments, which are readily available for additonal finanacial support if required. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

ARTHUR SPRIGGS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 12 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses.

Land is not depreciated. Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% of cost
Leasehold land and buildings
Over period of the lease
Plant and equipment
20% of written down value
Fixtures and fittings
15% of written down value
Office equipment
20% of cost
Motor vehicles
15% of written down value
Other fixed assets
20% of cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

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

1.6
Stocks

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

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

1.8
Financial instruments

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

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

ARTHUR SPRIGGS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
Basic financial assets

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

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

ARTHUR SPRIGGS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.9
Equity instruments

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

1.10
Employee benefits

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

 

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

 

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

1.11
Retirement benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

 

The contributions are recognised as an expense in the Profit And Loss Account when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.

1.12
Leases

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

 

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

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

ARTHUR SPRIGGS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

 

Critical accounting estimates and assumptions:

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The directors do not believe there are any assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

 

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

 

Impairment of stock

The company makes an estimate against the stock value held at cost for slow moving an obsolete items. When assessing the provision required, management considers factors including the current demand, the ageing profile of stock and historical experience.

3
Turnover and other revenue

The whole of the turnover is attributable to the one principal activity of the company.

2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
8,630,167
8,287,010
Rest of Europe
1,372
1,762
8,631,539
8,288,772
2023
2022
£
£
Other revenue
Interest income
1,604
94
ARTHUR SPRIGGS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
10,000
10,000
Depreciation of owned tangible fixed assets
291,098
225,484
Profit on disposal of tangible fixed assets
(62,311)
(33,956)
Operating lease charges
187,875
115,137
5
Employees

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

2023
2022
Number
Number
Total staff
74
78

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,416,450
2,516,685
Social security costs
251,905
247,226
Pension costs
62,289
62,398
2,730,644
2,826,309
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
206,234
205,215
Company pension contributions to defined contribution schemes
4,479
4,604
210,713
209,819

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 4).

ARTHUR SPRIGGS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
51,156
51,156
Company pension contributions to defined contribution schemes
1,535
1,547
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
1,604
94
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
11,885
15,175
9
Amounts written off investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
(Loss)/gain on financial assets held at fair value through profit or loss
(33,085)
3,202
10
Taxation

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

2023
2022
£
£
Profit before taxation
2,876
33,851
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
546
6,432
Tax effect of expenses that are not deductible in determining taxable profit
765
463
Change in unrecognised deferred tax assets
(15,488)
(14,209)
Depreciation on assets not qualifying for tax allowances
7,891
7,891
Adjustments in respect of financial assets
6,286
(577)
Taxation charge for the year
-
-
ARTHUR SPRIGGS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Taxation
(Continued)
- 18 -

Factors that may affect future tax charges

 

At 31 March 2023 the company has unrelieved trade losses of £3,068,261 (2022: £2,781,782) available to be utilised against future profits.

ARTHUR SPRIGGS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
11
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Office equipment
Motor vehicles
Other fixed assets
Total
£
£
£
£
£
£
£
£
Cost
At 1 April 2022
2,558,979
168,626
690,885
17,305
252,105
2,824,258
145,324
6,657,482
Additions
5,850
16,590
22,238
-
0
19,752
485,004
4,919
554,353
Disposals
-
0
-
0
-
0
-
0
(36,720)
(685,630)
-
0
(722,350)
At 31 March 2023
2,564,829
185,216
713,123
17,305
235,137
2,623,632
150,243
6,489,485
Depreciation and impairment
At 1 April 2022
387,158
154,966
525,250
14,949
192,423
2,004,239
122,777
3,401,762
Depreciation charged in the year
41,591
4,966
38,677
353
34,391
159,826
11,294
291,098
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(36,720)
(637,191)
-
0
(673,911)
At 31 March 2023
428,749
159,932
563,927
15,302
190,094
1,526,874
134,071
3,018,949
Carrying amount
At 31 March 2023
2,136,080
25,284
149,196
2,003
45,043
1,096,758
16,172
3,470,536
At 31 March 2022
2,171,821
13,660
165,635
2,356
59,682
820,019
22,547
3,255,720
ARTHUR SPRIGGS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Tangible fixed assets
(Continued)
- 20 -

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

2023
2022
£
£
Motor vehicles
290,127
370,955
12
Stocks
2023
2022
£
£
Raw materials and consumables
483,283
631,319
Work in progress
107,794
93,627
591,077
724,946
13
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,755,291
1,906,934
Equity instruments measured at cost less impairment
398,955
432,039
Carrying amount of financial liabilities
Measured at amortised cost
1,143,155
1,249,811

Financial assets that are debt instruments measured at amortised cost comprise cash at bank and in hand, trade debtors, amounts due from related parties, other debtors and accrued income.

 

Financial liabilities measured at amortised cost comprise bank loans, trade creditors, obligations under finance leases, taxation and social security, other creditors and accruals.

 

14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,084,488
1,168,374
Other debtors
-
0
106,667
Prepayments and accrued income
205,544
294,074
1,290,032
1,569,115
ARTHUR SPRIGGS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
15
Current asset investments
2023
2022
£
£
Listed investments
398,955
432,039

The historical cost of the investments is £252,000 (2022: £252,000).

16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
18
201,240
287,750
Trade creditors
463,410
642,987
Taxation and social security
268,524
203,598
Other creditors
48,449
16,183
Accruals and deferred income
161,532
85,136
1,143,155
1,235,654
17
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
18
-
0
14,157
18
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
201,512
290,179
In two to five years
-
0
14,429
201,512
304,608
Less: future finance charges
(272)
(2,701)
201,240
301,907
ARTHUR SPRIGGS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
19
Deferred taxation
2023
2022
Balances:
£
£
Accelerated capital allowances
(332,013)
(112,841)
Tax losses
332,013
112,841
-
-

A deferred tax asset has been recognised to the extent to reduce the net deferred tax position to £Nil (2022: £Nil). At the year end there was a unprovided deferred tax asset of £436,503 (2022: £358,553).

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
62,289
62,398

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Ordinary of £1 each
20,000
20,000
-
-
Issued and fully paid
Ordinary of £1 each
8,000
8,000
8,000
8,000

Ordinary shares carry full dividend and voting rights and rights to distributions to shareholders.

22
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
169,638
153,202
Between two and five years
478,750
648,388
648,388
801,590
ARTHUR SPRIGGS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
23
Related party transactions
Remuneration of key management personnel

Key management personnel remuneration, including directors and pensions contributions, for the year ended 31 March 2023 totalled £210,713 (2022: £209,819).

24
Controlling party

The company was under the control of the directors throughout the current and previous year with no one person having overall control.

25
Cash generated from/(absorbed by) operations
2023
2022
£
£
Profit for the year after tax
2,876
33,851
Adjustments for:
Finance costs
11,885
15,175
Investment income
(1,604)
(94)
Gain on disposal of tangible fixed assets
(62,311)
(33,956)
Depreciation and impairment of tangible fixed assets
291,098
225,484
Other gains and losses
33,085
(3,202)
Movements in working capital:
Decrease/(increase) in stocks
133,869
(93,522)
Decrease/(increase) in debtors
274,314
(260,936)
(Decrease)/increase in creditors
(5,989)
49,611
Cash generated from/(absorbed by) operations
677,223
(67,589)
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