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Registered number: 05055861










BATHGATE FLOORING LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

 
BATHGATE FLOORING LIMITED
 
 
COMPANY INFORMATION


Directors
A. J. Hubbard 
P. Freeman 
E. T. Smyth 
S. I. Bennett 
R. H. Walker 




Company secretary
S. I. Bennett



Registered number
05055861



Registered office
c/o Langtons Professional Services Limited
100 Old Hall Street

Liverpool

Merseyside

L3 9QJ




Independent auditor
Langtons Professional Services Limited
Chartered Accountants & Statutory Auditor

The Plaza

100 Old Hall Street

Liverpool

L3 9QJ





 
BATHGATE FLOORING LIMITED
 

CONTENTS



Page
Strategic Report
 
 
1 - 2
Directors' Report
 
 
3 - 4
Independent Auditor's Report
 
 
5 - 8
Statement of Comprehensive Income
 
 
9
Statement of Financial Position
 
 
10 - 11
Statement of Changes in Equity
 
 
12
Notes to the Financial Statements
 
 
13 - 30


 
BATHGATE FLOORING LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Introduction
 
The directors present their strategic report for the year ended 30 September 2023.

Business review
 
The core business is the Manufacturing, Supply and Installation of Raised Access Flooring, and the forward opportunities continue to be strong.
The year was challenging, with fixed price contracts being the sole reason for the losses. Despite this we continued a disciplined approach to cost and cash management during the period, which has maintained a strong business and balance sheet. 
We are not seeing fixed prices being an issue in the trading year 2023-24.
Opportunities remain strong for 2023-24 although contract awards are slow due to delays on site. The order intake for 2023-24 is currently in line with budget.

Principal risks and uncertainties
 
Risk Management:
Given the size of the company the directors have delegated the responsibility of financial risk management to
the company’s finance department. The department has a policy and procedures manual that sets out
guidelines to manage, credit risk, price risk and currency risk.
Credit Risk:
The Company has implemented policies that require appropriate credit checks on potential customers before
sales are made. The amount of exposure to any individual counterparty is subject to a limit, which is reassessed
annually by the board. Wherever appropriate the company will undertake a policy of credit insurance. If credit
insurance is not available the senior management team will ensure that any risk is managed pro-actively to
minimise any exposure.
Price Risk:
The Company is exposed to a price risk as a result of its operations. Wherever possible the management look
to enter into longer terms pricing contracts to minimise its price exposure, to movement in prices of raw
materials, which can be significant within its industry.

Financial key performance indicators
 
The company’s financial key performance indicators are primarily focussed around its turnover, profitability, and net current assets.
Some of these are set out in the table below, and which demonstrate the stability of the business:
Year Ended:                                            30 September 2023 
30 September 2022
  
Turnover:                                                            £19.84m                   £22.86m
Return on Capital Employed                              (5.7)%                       12.3%
Gross Profit                                                        13.0%                       14.7%
Current Ratio (Current Assets: Current Liabilities) 1.89:1                        1.92:1
The key non-financial performance indicators relate to service delivery and reducing our carbon footprint.

Page 1

 
BATHGATE FLOORING LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023


This report was approved by the board on 2 April 2024 and signed on its behalf.







A. J. Hubbard
Director

Page 2

 
BATHGATE FLOORING LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

The directors present their report and the financial statements for the year ended 30 September 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments 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 financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The company’s principal activities for the year continued to be the manufacturing, supply and installation of raised access flooring panels and accessories.

Results and dividends

The loss for the year, after taxation, amounted to £266,671 (2022 - profit £475,157).

The directors do not recommend the payment of a dividend.

Directors

The directors who served during the year were:

A. J. Hubbard 
P. Freeman 
K. D. Rye (resigned 31 December 2023)
E. T. Smyth 
S. I. Bennett 
R. H. Walker 

Page 3

 
BATHGATE FLOORING LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Future developments

The directors will focus on maintaining its excellent product quality and customer service as well as developing new and existing customer relationships and being able to react quickly to customer requirements.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

Under section 487(2) of the Companies Act 2006Langtons Professional Services Limited will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 2 April 2024 and signed on its behalf.
 







A. J. Hubbard
Director

Page 4

 
BATHGATE FLOORING LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BATHGATE FLOORING LIMITED
 

Opinion


We have audited the financial statements of Bathgate Flooring Limited (the 'Company') for the year ended 30 September 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 30 September 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council'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.


Page 5

 
BATHGATE FLOORING LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BATHGATE FLOORING LIMITED (CONTINUED)


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the 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.


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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the 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 set out on page 3, 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.


Page 6

 
BATHGATE FLOORING LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BATHGATE FLOORING LIMITED (CONTINUED)


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:

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and Taxation legislation.
 
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals and reviewing accounting estimates for biases.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards.  We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. 
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.


Page 7

 
BATHGATE FLOORING LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BATHGATE FLOORING LIMITED (CONTINUED)


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 2006Our 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.







Andrew McCall (Senior Statutory Auditor)
  
for and on behalf of
Langtons Professional Services Limited
 
Chartered Accountants
Statutory Auditor
  
The Plaza
100 Old Hall Street
Liverpool
L3 9QJ

2 April 2024
Page 8

 
BATHGATE FLOORING LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
19,837,360
22,858,885

Cost of sales
  
(17,262,648)
(19,508,119)

Gross profit
  
2,574,712
3,350,766

Administrative expenses
  
(3,081,974)
(2,882,417)

Other operating income
 5 
175,990
115,702

Operating (loss)/profit
 6 
(331,272)
584,051

Interest receivable and similar income
 10 
1,417
6

Interest payable and similar expenses
 11 
(1,986)
(1,429)

(Loss)/profit before tax
  
(331,841)
582,628

Tax on (loss)/profit
 12 
65,170
(107,471)

(Loss)/profit for the financial year
  
(266,671)
475,157

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 13 to 30 form part of these financial statements.

Page 9

 
BATHGATE FLOORING LIMITED
REGISTERED NUMBER: 05055861

STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
1,068
1,667

Tangible assets
 14 
715,830
885,946

  
716,898
887,613

Current assets
  

Stocks
 15 
2,643,697
2,590,073

Debtors: amounts falling due within one year
 16 
3,330,047
4,171,541

Cash at bank and in hand
 17 
2,183,309
1,567,296

  
8,157,053
8,328,910

Creditors: amounts falling due within one year
 18 
(4,291,267)
(4,342,005)

Net current assets
  
 
 
3,865,786
 
 
3,986,905

Total assets less current liabilities
  
4,582,684
4,874,518

Creditors: amounts falling due after more than one year
 19 
(16,088)
(23,934)

Provisions for liabilities
  

Deferred tax
 22 
(98,197)
(125,514)

Other provisions
  
(10,000)
-

  
 
 
(108,197)
 
 
(125,514)

Net assets
  
4,458,399
4,725,070

Page 10

 
BATHGATE FLOORING LIMITED
REGISTERED NUMBER: 05055861
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 SEPTEMBER 2023

2023
2022
Note
£
£

Capital and reserves
  

Called up share capital 
 24 
1,000,000
1,000,000

Profit and loss account
 25 
3,458,399
3,725,070

  
4,458,399
4,725,070


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 2 April 2024.






A. J. Hubbard
Director

The notes on pages 13 to 30 form part of these financial statements.

Page 11

 
BATHGATE FLOORING LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 October 2021
1,000,000
3,249,913
4,249,913


Comprehensive income for the year

Profit for the year
-
475,157
475,157
Total comprehensive income for the year
-
475,157
475,157


At 1 October 2022
1,000,000
3,725,070
4,725,070


Comprehensive income for the year

Loss for the year
-
(266,671)
(266,671)
Total comprehensive income for the year
-
(266,671)
(266,671)


At 30 September 2023
1,000,000
3,458,399
4,458,399


The notes on pages 13 to 30 form part of these financial statements.

Page 12

 
BATHGATE FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

1.


General information

The entity is a private limited liability company, limited by shares registered in England and Wales within the United Kingdom. The registered office is c/o Langtons Professional Services Limited, The Plaza, 100 Old Hall Street, Liverpool, L3 9QJ and company number is 05055861. The principal place of business is Unit 6G, Thorn Business Park, Hereford, HR2 6JT.  

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The presentation currency of these financial statements is pound sterling; the financial statements
are rounded to the nearest pound.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The company has cash resources and the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. They continue to believe the going concern basis of accounting appropriate in preparing the annual financial statements.

Page 13

 
BATHGATE FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

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:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.

Page 14

 
BATHGATE FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.6

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan

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 profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 15

 
BATHGATE FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.10

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

S/Term Leasehold Property
-
Over the life of the lease
Plant & machinery
-
10% straight line
Motor vehicles
-
Fixtures & fittings
-
20%-25% straight line
Office equipment
-
25% straight line
Computer equipment
-
33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods do not include labour and attributable overheads, except fortray lids and bases.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.13

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 16

 
BATHGATE FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.15

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.16

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Statement of Financial Position date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Statement of Financial Position date.

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.18

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of Financial Position 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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Page 17

 
BATHGATE FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)


2.18
Financial instruments (continued)

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Page 18

 
BATHGATE FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The  directors  have  made  judgments  regarding  the carrying  value of debtors and the revenue taken for installation jobs in progress at the year end. Attention is drawn to note 2 above.


4.


Turnover

The whole of the turnover is attributable to the pricipal activity of the business.

In the opinion of the directors, disclosure of the turnover derived from different activities and different geographical locations would not be in the interest of the company. 


5.


Other operating income

2023
2022
£
£

Net rents receivable
175,990
115,702

175,990
115,702



6.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2023
2022
£
£

Other operating lease rentals
306,312
244,018


7.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2023
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
16,375
15,600

Page 19

 
BATHGATE FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
2,590,053
2,519,630

Social security costs
278,682
275,345

Cost of defined contribution scheme
120,630
110,641

2,989,365
2,905,616


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Directors
4
4



Administration
5
5



Contracts
13
12



Production
41
45



Sales
8
8

71
74


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
426,887
411,301

Company contributions to defined contribution pension schemes
35,960
20,730

462,847
432,031


During the year retirement benefits were accruing to 4 directors (2022 - 4) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £118,032 (2022 - £116,350).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £3,952 (2022 - £2,333).

Page 20

 
BATHGATE FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

10.


Interest receivable

2023
2022
£
£


Other interest receivable
1,417
6

1,417
6


11.


Interest payable and similar expenses

2023
2022
£
£


Finance leases and hire purchase contracts
1,986
1,429

1,986
1,429

Page 21

 
BATHGATE FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
-
47,500

Adjustments in respect of previous periods
(37,853)
(855)


(37,853)
46,645


Group taxation relief
-
22,665


(37,853)
69,310


Total current tax
(37,853)
69,310

Deferred tax


Origination and reversal of timing differences
(27,317)
29,003

Changes to tax rates
-
9,158

Total deferred tax
(27,317)
38,161


Taxation on (loss)/profit on ordinary activities
(65,170)
107,471
Page 22

 
BATHGATE FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 22% (2022 - 19%). The differences are explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(331,841)
582,628


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 22% (2022 - 19%)
(73,005)
110,699

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,157
513

Fixed asset differences
2,981
(12,044)

Tax losses carried back
42,100
-

Adjustments to tax charge in respect of prior periods
(37,853)
(855)

Remeasurement of deferred tax for changes in tax rates
(1,550)
9,158

Total tax charge for the year
(65,170)
107,471


Factors that may affect future tax charges

Trading losses of £199,225 are available to carry forward against future trading profits.

Page 23

 
BATHGATE FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

13.


Intangible assets




Computer software

£



Cost


At 1 October 2022
178,645


Additions
1,068



At 30 September 2023

179,713



Amortisation


At 1 October 2022
176,978


Charge for the year on owned assets
1,667



At 30 September 2023

178,645



Net book value



At 30 September 2023
1,068



At 30 September 2022
1,667



Page 24

 
BATHGATE FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

14.


Tangible fixed assets





S/Term Leasehold Property
Plant & machinery
Fixtures & fittings
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 October 2022
275,845
2,097,569
4,443
29,861
2,407,718


Additions
3,440
35,435
-
-
38,875



At 30 September 2023

279,285
2,133,004
4,443
29,861
2,446,593



Depreciation


At 1 October 2022
214,950
1,272,518
4,443
29,861
1,521,772


Charge for the year on owned assets
25,540
165,951
-
-
191,491


Charge for the year on financed assets
-
17,500
-
-
17,500



At 30 September 2023

240,490
1,455,969
4,443
29,861
1,730,763



Net book value



At 30 September 2023
38,795
677,035
-
-
715,830



At 30 September 2022
60,895
825,051
-
-
885,946

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
35,000
52,500

35,000
52,500

Page 25

 
BATHGATE FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

15.


Stocks

2023
2022
£
£

Raw materials and consumables
947,596
1,037,174

Work in progress (goods to be sold)
93,239
122,620

Finished goods and goods for resale
1,602,862
1,430,279

2,643,697
2,590,073



16.


Debtors

2023
2022
£
£


Trade debtors
2,758,737
3,311,757

Other debtors
154,672
421,978

Prepayments and accrued income
416,638
437,806

3,330,047
4,171,541



17.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
2,183,309
1,567,296

Less: bank overdrafts
-
(89)

2,183,309
1,567,207


Page 26

 
BATHGATE FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

18.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
-
89

Trade creditors
3,095,787
3,516,728

Amounts owed to group undertakings
373,582
123,045

Other taxation and social security
115,345
98,137

Obligations under finance lease and hire purchase contracts
30,062
20,965

Other creditors
17,030
15,967

Accruals and deferred income
659,461
567,074

4,291,267
4,342,005


Bank overdrafts are secured by way of a fixed and floating charge over all the assets of the company.
Obligations under finance lease and hire purchase contracts are secured on the assets concerned.


19.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
16,088
23,934

16,088
23,934


Obligations under finance lease and hire purchase contracts are secured on the assets concerned.


20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
29,974
21,642

Between 1-5 years
17,079
24,197

47,053
45,839

Page 27

 
BATHGATE FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

21.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
2,183,309
1,567,296

Financial assets that are debt instruments measured at amortised cost
2,758,737
3,311,757

4,942,046
4,879,053


Financial liabilities


Financial liabilities measured at amortised cost
(4,144,715)
(4,222,527)


Financial assets measured at fair value through profit or loss comprise cash in hand and at bank.


Financial assets measured at amortised cost comprise trade and other debtors (except statutory repayments from HMRC).


Financial liabilities measured at amortised cost comprise trade and other creditors, accruals, loans and overdrafts and amounts owed to group companies.

Page 28

 
BATHGATE FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

22.


Deferred taxation




2023


£






At beginning of year
(125,514)


Charged to profit or loss
27,317



At end of year
(98,197)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(104,669)
(131,316)

Short term timing differences
6,472
5,802

(98,197)
(125,514)


23.


Provisions




Dilapidation provision

£





Charged to profit or loss
10,000



At 30 September 2023
10,000


24.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,000,000 (2022 - 1,000,000) Ordinary shares of £1.00 each
1,000,000
1,000,000



25.


Reserves

Profit & loss account

The profit and loss account represents total accumulated profits and losses to date less any dividends declared and paid.

Page 29

 
BATHGATE FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

26.


Contingent liabilities

Guarantees totalling £81,044 (2022 - £112,462) have been given to main contractors which will only crystalise should the company be unable to complete the works required.


27.


Pension commitments

The  company  pays into personal pension plans.  The  assets  in  the  plans  are  held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the plans. Contributions totalling £15,886 (2022 - £15,593) were payable to the fund at the reporting date and are included in creditors.


28.


Commitments under operating leases

At 30 September 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
288,196
235,316

Later than 1 year and not later than 5 years
342,566
504,820

630,762
740,136


29.


Related party transactions

The company has taken advantage of the exemption under paragraph 33.1A of FRS 102 and has not disclosed transactions with other wholly owned group companies.


30.


Controlling party

The company's ultimate parent company, which prepares consolidated financial statements is Archibald Bathgate Group Limited. Copies of the parent company's financial statements can be obtained from Companies House, Cardiff.
The directors consider the controlling party to be R.H. Walker. 

 
Page 30