Company Registration No. 04426347 (England and Wales)
NEATCROWN CORWEN LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
PAGES FOR FILING WITH REGISTRAR
NEATCROWN CORWEN LIMITED
COMPANY INFORMATION
Directors
Mr B H Griffiths
Mrs K E Griffiths
Secretary
Mrs V Williams
Company number
04426347
Registered office
Station Yard Industrial Estate
Corwen
Denbighshire
United Kingdom
LL21 0EE
Accountants
Azets
Brynford House
21 Brynford Street
Holywell
Flintshire
United Kingdom
CH8 7RD
NEATCROWN CORWEN LIMITED
CONTENTS
Page
Directors' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 8
NEATCROWN CORWEN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 1 -
The directors present their annual report and financial statements for the year ended 31 May 2023.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr B H Griffiths
Mrs K E Griffiths
Review of Business
2023 was a challenging year for all manufacturers, and Neatcrown was not immune to these challenges. Between raw material, wage and energy Inflation; reduced demand for discretionary products and increased financing costs, it was difficult to recover increased costs throughout the fiscal year.
Whilst our exposure to the Home & Garden market has been reduced through our increased presence in the Agrochemical and amenity market, the loss of Wilko’s hit everyone in their supply chain, and cascaded a desire for reduced stock holdings through retailers and direct suppliers.
Over the past 3 years we have focused our business development on Agrochemical fertilisers, and during the last quarter of the fiscal year our Agrochemical production overtook the other sectors we service. This has allowed us to increase stock turn with more common raw materials, increase the margins due to a higher value added service, and has significantly diversified the customer base.
Whilst 2023 was below expectations due to postponement of new projects, the majority of these began shortly after the fiscal year closed, creating a very strong start to 2024.
One of the proudest moments for Neatcrown was when the team were recognised at the National Packaging Awards in London as “Co-manufacturer & Packer of the year”.
This truly is an incredible recognition of the perseverance and incredible problem solving our customers have come to expect from Neatcrown.
Since year end our growth rate has been well ahead of forecasts and we are excited to continue serving our customers and solving interesting problems for them.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr B H Griffiths
Director
26 January 2024
NEATCROWN CORWEN LIMITED
BALANCE SHEET
AS AT 31 MAY 2023
31 May 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
157,085
157,085
Tangible assets
4
1,753,507
1,797,595
1,910,592
1,954,680
Current assets
Stocks
460,907
625,370
Debtors
5
723,013
1,240,242
Cash at bank and in hand
77,313
38,999
1,261,233
1,904,611
Creditors: amounts falling due within one year
7
(1,438,350)
(1,694,490)
Net current (liabilities)/assets
(177,117)
210,121
Total assets less current liabilities
1,733,475
2,164,801
Creditors: amounts falling due after more than one year
6
(885,354)
(1,065,129)
Net assets
848,121
1,099,672
Capital and reserves
Called up share capital
8
20,100
20,100
Other reserves
550,000
550,000
Profit and loss reserves
278,021
529,572
Total equity
848,121
1,099,672
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 May 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
NEATCROWN CORWEN LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2023
31 May 2023
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 26 January 2024 and are signed on its behalf by:
Mr B H Griffiths
Director
Company Registration No. 04426347
NEATCROWN CORWEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 4 -
1
Accounting policies
Company information
Neatcrown Corwen Limited is a private company limited by shares incorporated in England and Wales. The registered office is Station Yard Industrial Estate, Corwen, Denbighshire, United Kingdom, LL21 0EE.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 80 months.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.4
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.
NEATCROWN CORWEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 5 -
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:
Leasehold land and buildings
No depreciation
Plant and Machinery etc
20% on cost
Fixtures and fittings
10% on 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
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.
1.6
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, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
NEATCROWN CORWEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 6 -
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 when the company has 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.
1.8
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.
1.9
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
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
50
50
NEATCROWN CORWEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 7 -
3
Intangible fixed assets
Goodwill
£
Cost
At 1 June 2022 and 31 May 2023
251,335
Amortisation and impairment
At 1 June 2022 and 31 May 2023
94,250
Carrying amount
At 31 May 2023
157,085
At 31 May 2022
157,085
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 June 2022
1,454,338
3,180,850
4,635,188
Additions
11,615
11,615
At 31 May 2023
1,454,338
3,192,465
4,646,803
Depreciation and impairment
At 1 June 2022
154,338
2,683,255
2,837,593
Depreciation charged in the year
55,703
55,703
At 31 May 2023
154,338
2,738,958
2,893,296
Carrying amount
At 31 May 2023
1,300,000
453,507
1,753,507
At 31 May 2022
1,300,000
497,595
1,797,595
Land and buildings with a carrying amount of £1,300,000 were revalued at 27 May 2022 by Forge Property Consultants, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
NEATCROWN CORWEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 8 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
623,112
1,083,544
Other debtors
99,901
156,698
723,013
1,240,242
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
689,333
699,333
Taxation and social security
157,690
225,190
Other creditors
38,331
140,606
885,354
1,065,129
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
596,526
484,184
Trade creditors
607,817
922,395
Taxation and social security
59,201
106,070
Other creditors
174,806
181,841
1,438,350
1,694,490
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
20,100
20,100
20,100
20,100
9
Related party transactions
Neatcrown Corwen Limited is a wholly owned subsidiary of Neatcrown Holdings Limited. At the balance sheet date, £0.00 (2022: £34,852) was owed to Neatcrown Holdings Limited by Neatcrown Corwen Limited.
Corwen Export Limited is a wholly owned subsidiary of Neatcrown Corwen Limited; the company has been dormant for the period to 31 May 2023.