Company Registration No. SC640496 (Scotland)
BARR + WRAY GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
BARR + WRAY GROUP LIMITED
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9 - 10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 33
BARR + WRAY GROUP LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr D Barton
Mrs M K Johnson
Mr L J Kennedy
Mr A A Macdonald
Mr I McClure
Mr I Montgomerie
Secretary
Mr I Montgomerie
Company number
SC640496
Registered office
1 Buccleuch Avenue
Hillington Park
Glasgow
Scotland
G52 4NR
Auditor
Consilium Audit Limited
169 West George Street
Glasgow
Scotland
G2 2LB
BARR + WRAY GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
The directors present the strategic report for the year ended 30 September 2023.
Review of Business
The group's principal activity is in two distinct markets - "Pools and Spas" and "Process Equipment", where it utilises its core skills in water engineering. Its experience and expertise built up over 60 years is combined with state of the art engineering to provide its customers with products and services of the highest quality.
The directors believe the results for the year are commendable and that the closing order-book at the end of September 2023 provides an opportunity for further growth.
Key Performance Indicators
Gross margin for the year was 24.98% (2022: 24.90%). The group made an operating profit in the year.
Principal Risks and Uncertainties
The directors believe the main risks facing the business are the downturn in the global economy coupled with the high levels of inflation at the current time. The healthy financial position of the business, the recognised quality of the group brand and the strong order book at the year-end in the directors' opinion significantly mitigates these risks.
Financial Risk Management Objectives and Policies
The group finances its operations through its retained profits. Management objective is to retain sufficient liquid funds to enable it to meet its day to day obligations as they fall due.
Hedge accounting is not used by the group.
The group's surplus funds are held primarily in short term fixed rate deposit accounts, which the directors believe gives the group the flexibility to release cash resources at short notice.
Mr I Montgomerie
Director
6 February 2024
BARR + WRAY GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 30 September 2023.
Principal activities
The principal activity of the Group during the year was the provision of water engineering services.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £128,000 (2022: £128,000).
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D Barton
Mrs M K Johnson
Mr L J Kennedy
Mr A A Macdonald
Mr I McClure
Mr I Montgomerie
Auditor
The auditor, Consilium Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
BARR + WRAY GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -
On behalf of the board
Mr I Montgomerie
Director
6 February 2024
BARR + WRAY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BARR + WRAY GROUP LIMITED
- 5 -
Opinion
We have audited the financial statements of Barr + Wray Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 FRS 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 the parent company's affairs as at 30 September 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.
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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
BARR + WRAY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BARR + WRAY GROUP LIMITED
- 6 -
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 strategic report and the directors' report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. 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 as follows:
We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
We identified the laws and regulations applicable to the Company and Group through discussions with Directors and management and from our knowledge of the regulatory environment relevant to the Company and Group.
We assessed the extent of compliance with laws and regulations through making enquiries of management and inspecting legal 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 as to where they considered there was susceptibility to fraud and their knowledge of actual, suspected and alleged fraud.
To address the risk of fraud through management bias and override of controls, we tested journal entries to identify unusual transactions, we assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias and we investigated the rationale behind significant or unusual transactions.
BARR + WRAY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BARR + WRAY GROUP LIMITED
- 7 -
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware 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.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
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.
David Holt (Senior Statutory Auditor)
for and on behalf of Consilium Audit Limited
Statutory Auditor
169 West George Street
Glasgow
United Kingdom
G2 2LB
14 February 2024
BARR + WRAY GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
17,035,531
15,634,001
Cost of sales
(12,779,330)
(11,740,738)
Gross profit
4,256,201
3,893,263
Administrative expenses
(3,300,639)
(3,143,902)
Other operating income
81,133
5,158
Operating profit
4
1,036,695
754,519
Interest receivable and similar income
8
198,672
22,136
Interest payable and similar expenses
9
(84,264)
(72,536)
Profit before taxation
1,151,103
704,119
Tax on profit
10
(192,286)
(156,798)
Profit for the financial year
26
958,817
547,321
Other comprehensive income
Actuarial gain on defined benefit pension schemes
211,000
1,555,000
Currency translation differences
(151,487)
406,873
Tax relating to other comprehensive income
(198,490)
(295,450)
Total comprehensive income for the year
819,840
2,213,744
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
BARR + WRAY GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
1,318,628
1,535,389
Other intangible assets
12
5,138
Total intangible assets
1,318,628
1,540,527
Tangible assets
13
1,481,671
1,468,118
2,800,299
3,008,645
Current assets
Stocks
16
358,432
742,647
Debtors
17
4,630,995
4,877,948
Cash at bank and in hand
4,109,695
3,526,904
9,099,122
9,147,499
Creditors: amounts falling due within one year
18
(7,095,219)
(7,491,575)
Net current assets
2,003,903
1,655,924
Total assets less current liabilities
4,804,202
4,664,569
Creditors: amounts falling due after more than one year
19
(630,769)
(1,067,194)
Provisions for liabilities
Deferred tax liability
21
796,000
571,782
(796,000)
(571,782)
Net assets excluding pension surplus
3,377,433
3,025,593
Defined benefit pension surplus
22
2,769,000
2,429,000
Net assets
6,146,433
5,454,593
Capital and reserves
Called up share capital
23
32,000
32,000
Share premium account
24
2,775,985
2,775,985
Other reserves
25
14,694
166,181
Profit and loss reserves
26
3,323,754
2,480,427
Total equity
6,146,433
5,454,593
BARR + WRAY GROUP LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
30 SEPTEMBER 2023
30 September 2023
- 10 -
The financial statements were approved by the board of directors and authorised for issue on
6 February 2024
06 February 2024
and are signed on its behalf by:
Mr I Montgomerie
Director
BARR + WRAY GROUP LIMITED
COMPANY BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
6,540,432
6,540,432
Current assets
Cash at bank and in hand
2,415
4,407
Creditors: amounts falling due within one year
18
(3,102,680)
(2,668,795)
Net current liabilities
(3,100,265)
(2,664,388)
Total assets less current liabilities
3,440,167
3,876,044
Creditors: amounts falling due after more than one year
19
(630,769)
(1,067,194)
Net assets
2,809,398
2,808,850
Capital and reserves
Called up share capital
23
32,000
32,000
Share premium account
24
2,775,985
2,775,985
Profit and loss reserves
26
1,413
865
Total equity
2,809,398
2,808,850
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £128,548 (2022 - £128,150 profit).
The financial statements were approved by the board of directors and authorised for issue on
6 February 2024
06 February 2024
and are signed on its behalf by:
Mr I Montgomerie
Director
Company Registration No. SC640496
BARR + WRAY GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 October 2021
32,000
2,775,985
(240,692)
801,556
3,368,849
Year ended 30 September 2022:
Profit for the year
-
-
-
547,321
547,321
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
1,555,000
1,555,000
Currency translation differences
-
-
-
406,873
406,873
Tax relating to other comprehensive income
-
-
-
(295,450)
(295,450)
Total comprehensive income for the year
-
-
-
2,213,744
2,213,744
Dividends
11
-
-
-
(128,000)
(128,000)
Transfer to foreign exchange reserve
-
-
406,873
(406,873)
-
Balance at 30 September 2022
32,000
2,775,985
166,181
2,480,427
5,454,593
Year ended 30 September 2023:
Profit for the year
-
-
-
958,817
958,817
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
211,000
211,000
Currency translation differences
-
-
-
(151,487)
(151,487)
Tax relating to other comprehensive income
-
-
-
(198,490)
(198,490)
Total comprehensive income for the year
-
-
-
819,840
819,840
Dividends
11
-
-
-
(128,000)
(128,000)
Transfer to foreign exchange reserve
-
-
(151,487)
151,487
-
Balance at 30 September 2023
32,000
2,775,985
14,694
3,323,754
6,146,433
BARR + WRAY GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2021
32,000
2,775,985
715
2,808,700
Year ended 30 September 2022:
Profit and total comprehensive income for the year
-
-
128,150
128,150
Dividends
11
-
-
(128,000)
(128,000)
Balance at 30 September 2022
32,000
2,775,985
865
2,808,850
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
128,548
128,548
Dividends
11
-
-
(128,000)
(128,000)
Balance at 30 September 2023
32,000
2,775,985
1,413
2,809,398
BARR + WRAY GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
1,521,845
1,182,008
Interest paid
(84,264)
(72,536)
Income taxes paid
(131,914)
(284,403)
Net cash inflow from operating activities
1,305,667
825,069
Investing activities
Purchase of tangible fixed assets
(130,677)
(70,961)
Interest received
69,672
4,136
Net cash used in investing activities
(61,005)
(66,825)
Financing activities
Repayment of loan notes
(212,800)
(212,800)
Repayment of bank loans
(173,683)
(1,107,549)
Dividends paid to equity shareholders
(128,000)
(128,000)
Net cash used in financing activities
(514,483)
(1,448,349)
Net increase/(decrease) in cash and cash equivalents
730,179
(690,105)
Cash and cash equivalents at beginning of year
3,526,904
3,811,912
Effect of foreign exchange rates
(147,388)
405,097
Cash and cash equivalents at end of year
4,109,695
3,526,904
BARR + WRAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 15 -
1
Accounting policies
Company information
Barr + Wray Group Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is 1 Buccleuch Avenue, Hillington Park, Glasgow, Scotland, G52 4NR.
The group consists of Barr + Wray Group Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Barr + Wray Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 September 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
In respect of long-term contracts and contracts for ongoing services, turnover represents the value of work done in the year, including estimates of amounts not invoiced, net of Value Added Tax. The value of work done in respect of long term contracts and contracts for ongoing services is determined by reference to the stage of completion.
In respect of goods and services sold during the year turnover represents sales price, less returns received, exclusive of Value Added Tax. Sales are recognised at the point at which the Company has fulfilled its contractual obligations and the risks and rewards attaching to the product have been transferred to the customer.
BARR + WRAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.5
Intangible fixed assets - goodwill
Goodwill is stated at cost less accumulated amortisation and any impairment in value. Cost is the difference between the fair value of the consideration paid on the acquisition of a business and the fair value of the separable net assets required. Amortisation is calculated to write off the cost of goodwill on a straight line basis over its estimated useful life up to a maximum of 10 years.
The carrying value of goodwill is reviewed by the directors annually for impairment.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets in relation to customer contracts have a finite useful life and are carried at cost less accumulated amortisation. The estimated useful life of these contracts is 10 years.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Heritable property
2% straight line
Tools and equipment
20% straight line
Office furniture and equipment
10% to 25% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.8
Fixed asset investments
Investments are stated at cost less provision for any diminution of value, if such reduction is deemed to be of a permanent nature.
BARR + WRAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.9
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Cost is calculated using the first-in first-out method and includes the normal cost of transporting stock to its present location and condition.
Work in progress
Work in progress is valued on the basis of direct material and labour costs plus attributable overheads based on a normal level of activity.
For long term contracts, profit is recognised by reference to the stage of completion of each contract where there is reasonable certainty that the contract will be profitable. Where the outcome of the contract cannot be established with reasonable certainty, no profit is recognised. Foreseeable losses are provided for in full at the point at which the loss is anticipated.
Where amounts invoiced exceed the value of work done, the excess is accounted for as payments received on account and is included within creditors. Where the value of work done exceeds the amount invoiced, the excess is accounted for as amounts recoverable on contracts and is included within debtors.
1.10
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include 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.
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.
BARR + WRAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
BARR + WRAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
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.
1.13
Retirement benefits
The Group operates two pension schemes; one defined benefit scheme and one defined contribution scheme. For the defined benefit scheme, the amounts charged to operating profit are the current service costs and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the income statement if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. The interest cost and the expected return on assets are shown as a net amount of other finance costs or credits adjacent to interest. Actuarial gains and loss are recognised immediately in Other Comprehensive Income.
Defined benefit schemes are funded with the assets of the scheme held separately from those of the Group, in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at an AA corporate bond rate. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The resulting defined benefit asset (to the extent that it can be recovered) or liability is presented separately after other net assets on the face of the balance sheet. The contributions are determined by a qualified actuary on the basis of triennial valuations.
The defined benefit pension scheme was closed to future accrual with effect from 30 September 2006.
For defined contribution schemes, the amount charged to the Income Statement in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet. The assets of the scheme are held separately from those of the Group in an independently administered fund.
1.14
Leases
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.
BARR + WRAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.15
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
Preparation of the financial statements requires management to make significant judgements and estimates. In preparing the financial statements the directors have made the following judgements:
Determine whether leases entered into by the Group as a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
Determine whether there are indicators of impairment of the Group's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.
Determine whether any bad debt provision is required via review of trade debtors, with debts provided for on a specific basis. Factors considered include customer payment history and agreed credit terms.
Determine whether contract revenue and contract costs have been estimated and recognised according to the concepts of prudence and realisation of profits.
The Group has obligations to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation/asset in the balance sheet. The assumptions reflect historical experience and current trends.
3
Turnover and other revenue
The turnover and profit before taxation are attributable to the one principal activity of the Group.
The directors have chosen not to disclose further information on the Group's turnover on the basis that they consider it seriously prejudicial to the interests of the Group.
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
51,723
(24,732)
Depreciation of owned tangible fixed assets
113,495
98,384
Amortisation of intangible assets
221,429
221,240
Operating lease charges
236,691
230,784
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
24,750
22,800
BARR + WRAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 21 -
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management & Administration
39
39
-
-
Productions, Installation & Sales
51
54
-
-
Total
90
93
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,769,118
3,531,065
Social security costs
234,526
223,789
-
-
Pension costs
90,385
83,720
4,094,029
3,838,574
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
529,626
555,637
Company pension contributions to defined contribution schemes
14,860
14,133
544,486
569,770
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2022 - 5).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
139,294
132,578
Company pension contributions to defined contribution schemes
5,141
4,896
BARR + WRAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 22 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
69,672
4,136
Interest on the net defined benefit asset
129,000
18,000
Total income
198,672
22,136
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
69,672
4,136
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
57,458
48,401
Other interest on financial liabilities
26,806
24,135
84,264
72,536
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
166,558
131,776
Adjustments in respect of prior periods
(2,264)
Total current tax
166,558
129,512
Deferred tax
Origination and reversal of timing differences
25,728
27,286
Total tax charge
192,286
156,798
BARR + WRAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
10
Taxation
(Continued)
- 23 -
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
1,151,103
704,119
Expected tax charge based on the standard rate of corporation tax in the UK of 22.00% (2022: 19.00%)
253,243
133,783
Tax effect of expenses that are not deductible in determining taxable profit
29,668
91,252
Tax effect of income not taxable in determining taxable profit
(129,818)
(86,780)
Effect of change in corporation tax rate
62
-
Depreciation on assets not qualifying for tax allowances
6,953
6,005
Over provided in prior years
(2,264)
Leased cars disallowed
996
1,276
Enhanced capital allowances
(285)
(1,757)
Double taxation relief
-
(1,594)
Deferred tax at different rates
31,467
27,045
Losses brought forward
-
(10,168)
Taxation charge
192,286
156,798
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2023
2022
£
£
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
198,490
295,450
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
128,000
128,000
BARR + WRAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 24 -
12
Intangible fixed assets
Group
Goodwill
Customer contracts
Total
£
£
£
Cost
At 1 October 2022
2,167,608
23,498
2,191,106
Exchange adjustments
(4,563)
(4,563)
At 30 September 2023
2,167,608
18,935
2,186,543
Amortisation and impairment
At 1 October 2022
632,219
18,360
650,579
Amortisation charged for the year
216,761
4,668
221,429
Exchange adjustments
(4,093)
(4,093)
At 30 September 2023
848,980
18,935
867,915
Carrying amount
At 30 September 2023
1,318,628
1,318,628
At 30 September 2022
1,535,389
5,138
1,540,527
The company had no intangible fixed assets at 30 September 2023 or 30 September 2022.
13
Tangible fixed assets
Group
Heritable property
Tools and equipment
Office furniture and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2022
1,588,110
171,590
1,482,508
254,054
3,496,262
Additions
6,371
25,069
99,237
130,677
Disposals
(71,914)
(71,914)
Exchange adjustments
(327)
(1,932)
(1,256)
(3,515)
At 30 September 2023
1,588,110
177,634
1,505,645
280,121
3,551,510
Depreciation and impairment
At 1 October 2022
465,819
155,456
1,166,956
239,913
2,028,144
Depreciation charged in the year
35,938
7,430
43,702
26,425
113,495
Eliminated in respect of disposals
(71,914)
(71,914)
Exchange adjustments
4
28
82
114
At 30 September 2023
501,757
162,890
1,210,686
194,506
2,069,839
Carrying amount
At 30 September 2023
1,086,353
14,744
294,959
85,615
1,481,671
At 30 September 2022
1,122,291
16,134
315,552
14,141
1,468,118
BARR + WRAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
13
Tangible fixed assets
(Continued)
- 25 -
The company had no tangible fixed assets at 30 September 2023 or 30 September 2022.
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
6,540,432
6,540,432
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2022 and 30 September 2023
6,540,432
Carrying amount
At 30 September 2023
6,540,432
At 30 September 2022
6,540,432
15
Subsidiaries
Details of the company's subsidiaries at 30 September 2023 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Barr + Wray Holdings 2 Limited
1 Buccleuch Avenue, Hillington Park, Glasgow
Intermediate holding company
Ordinary
100.00
-
Barr + Wray Holdings Limited (sub-subsidiary)
1 Buccleuch Avenue, Hillington Park, Glasgow
Intermediate holding company
Ordinary
-
100.00
Barr + Wray Limited (sub-subsidiary)
1 Buccleuch Avenue, Hillington Park, Glasgow
Provision of water engineering services
Ordinary
-
100.00
Barr + Wray FZE (sub-subsidiary)
Office No. 401, Le Solarium, Dubai Silicon Oasis, Dubai, U.A.E
Provision of water engineering services
Ordinary
-
100.00
Barr + Wray (HK) Limited (sub-subsidiary)
Units 1603-4, 16th Floor, Causeway Bay Plaza I, No. 489 Henessay Road, Hong Kong
Dormant
Ordinary
-
100.00
All subsidiaries are included in the consolidated financial statements and have an accounting reference date of 30 September 2023.
BARR + WRAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 26 -
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
83,332
98,663
-
-
Work in progress
275,100
643,984
-
-
358,432
742,647
-
-
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,543,016
1,477,030
Gross amounts owed by contract customers
1,550,263
2,901,179
Other debtors
93,211
12,125
Prepayments and accrued income
444,505
487,614
4,630,995
4,877,948
-
-
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Loan notes
20
248,267
212,800
248,267
212,800
Bank loans
20
173,683
159,208
173,683
159,208
Payments received on account
825,824
799,033
Trade creditors
2,523,681
1,912,733
Amounts owed to group undertakings
2,673,413
2,289,562
Corporation tax payable
86,420
51,776
Other taxation and social security
107,869
113,759
-
-
Other creditors
2,681,492
3,524,033
Accruals and deferred income
447,983
718,233
7,317
7,225
7,095,219
7,491,575
3,102,680
2,668,795
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Loan notes
20
17,733
266,000
17,733
266,000
Bank loans and overdrafts
20
613,036
801,194
613,036
801,194
630,769
1,067,194
630,769
1,067,194
BARR + WRAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 27 -
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Loan notes
266,000
478,800
266,000
478,800
Bank loans
786,719
960,402
786,719
960,402
1,052,719
1,439,202
1,052,719
1,439,202
Payable within one year
421,950
372,008
421,950
372,008
Payable after one year
630,769
1,067,194
630,769
1,067,194
The loan notes and the bank loans are secured by a floating charge over the whole of the property of the Group.
Interest on the loan notes is charged at 3.45% over the Bank Of England base rate.
Interest on the bank loans is charged at rates between 2.35% and 3.45% over the Bank of England Base rate.
BARR + WRAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 28 -
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
102,990
109,512
Retirement benefit obligations
693,010
462,270
796,000
571,782
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 October 2022
571,782
-
Charge to profit or loss
25,728
-
Charge to other comprehensive income
198,490
-
Liability at 30 September 2023
796,000
-
BARR + WRAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 29 -
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to statement of comprehensive income in respect of defined contribution schemes
90,385
83,720
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Defined benefit schemes
The Group operates a pension scheme for certain employees providing benefits based on final pensionable pay. The scheme closed to further accrual in September 2006. The scheme is a funded scheme.
2023
2022
Key assumptions
%
%
Discount rate
5.45
5.30
Consumer price inflation
2.80
3.10
Retail price inflation
3.20
3.60
The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:
2023
2022
Group
£
£
Present value of defined benefit obligations
(6,463,000)
(6,905,000)
Fair value of plan assets
9,232,000
9,334,000
Surplus in scheme
2,769,000
2,429,000
Group
2023
2022
Amounts recognised in the statement of comprehensive income
£
£
Net interest on net defined benefit (asset)/liability
(129,000)
(18,000)
BARR + WRAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
22
Retirement benefit schemes
(Continued)
- 30 -
Group
2023
2022
Amounts taken to other comprehensive income
£
£
Actual return on scheme assets
(313,000)
1,445,000
Add: calculated interest element
484,000
230,000
Return on scheme assets excluding interest income
171,000
1,675,000
Actuarial changes related to obligations
(382,000)
(3,230,000)
Total (income)
(211,000)
(1,555,000)
Group
2023
Movements in the present value of defined benefit obligations
£
Liabilities at 1 October 2022
6,905,000
Benefits paid
(415,000)
Actuarial gains
(382,000)
Interest cost
355,000
At 30 September 2023
6,463,000
Group
2023
Movements in the fair value of plan assets
£
Fair value of assets at 1 October 2022
9,334,000
Interest income
484,000
Return on plan assets (excluding amounts included in net interest)
(171,000)
Benefits paid
(415,000)
At 30 September 2023
9,232,000
Fair value of plan assets at the reporting period end
Group
2023
2022
£
£
Equity instruments
3,507,000
3,281,000
Bonds
2,306,000
2,502,000
Cash and other
3,419,000
3,551,000
9,232,000
9,334,000
BARR + WRAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 31 -
23
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
32,000
32,000
32,000
32,000
24
Share premium account
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
2,775,985
2,775,985
2,775,985
2,775,985
25
Other reserves
Foreign exchange reserve
Group
£
At the beginning of the prior year
(240,692)
Transfer from retained earnings
406,873
At the end of the prior year
166,181
Transfer from retained earnings
(151,487)
At the end of the current year
14,694
26
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
2,480,427
801,556
865
715
Profit for the year
958,817
547,321
128,548
128,150
Dividends
(128,000)
(128,000)
(128,000)
(128,000)
Actuarial differences recognised in other comprehensive income
211,000
1,555,000
Tax on actuarial differences
(198,490)
(295,450)
-
-
Currency translation differences
(151,487)
406,873
Transfer to foreign exchange reserve
151,487
(406,873)
-
-
At the end of the year
3,323,754
2,480,427
1,413
865
BARR + WRAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 32 -
27
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
110,637
97,312
-
-
Between two and five years
156,969
132,227
-
-
267,606
229,539
-
-
28
Related party transactions
Transactions with related parties
At the period end, there is an amount owed to a director of £266,000 (2022: £478,800). Interest of £26,846 (2022: £24,135) was paid to the director during the period.
Other information
The Group has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
29
Controlling party
The Company is under the control of the holders of the ordinary share capital. There is no ultimate controlling party.
30
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
958,817
547,321
Adjustments for:
Taxation charged
192,286
156,798
Finance costs
84,264
72,536
Investment income
(198,672)
(22,136)
Amortisation and impairment of intangible assets
221,429
221,240
Depreciation and impairment of tangible fixed assets
113,495
98,384
Movements in working capital:
Decrease/(increase) in stocks
384,215
(419,608)
Decrease in debtors
246,953
5,422
(Decrease)/increase in creditors
(480,942)
522,051
Cash generated from operations
1,521,845
1,182,008
BARR + WRAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 33 -
31
Analysis of changes in net funds - group
1 October 2022
Cash flows
Exchange rate movements
30 September 2023
£
£
£
£
Cash at bank and in hand
3,526,904
738,172
(155,381)
4,109,695
Borrowings excluding overdrafts
(1,439,202)
386,483
-
(1,052,719)
2,087,702
1,124,655
(155,381)
3,056,976
2023-09-302022-10-01falseCCH SoftwareCCH Accounts Production 2023.300Mr D BartonMrs M K JohnsonMr L J KennedyMr A A MacdonaldMr I McClureMr I MontgomerieMr I 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