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Registration number: 04613101

Westwood Pipelines Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Westwood Pipelines Limited

Contents

Company Information

1

Strategic Report

2

Director's Report

3

Statement of Director's Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Balance Sheet

9

Statement of Changes in Equity

10

Statement of Cash Flows

11

Notes to the Financial Statements

12 to 23

 

Westwood Pipelines Limited

Company Information

Director

S Jones

Registered office

Westwood Business Park
Belton Road
Sandtoft
Doncaster
DN8 5BF

Auditors

Forrester Boyd
Chartered Accountants
26 South St. Mary's Gate
Grimsby
North East Lincolnshire
DN31 1LW

 

Westwood Pipelines Limited

Strategic Report for the Year Ended 31 December 2023

The Director presents his strategic report for the year ended 31 December 2023.

Principal activity

The principal activity of the Company is the manufacture of plastic pipe fittings.

Fair review of the business

Operating as part of the egeplast Group, Westwood Pipelines is strengthened by the success of the core business based in Germany. The main products produced by the Company in response to demand from customers is Black P100 Pipe and Blue 9010 Pipe. The establishment of a production line onsite in the UK in 2019 has allowed for the mitigation of import delays and stock out issues resultant from a reliance on sole production in Germany.

In order to further support ongoing growth plans, we are in the process of increasing the workforce. Establishing a more extensive workforce is hoped to increase the production range within the UK and improve the efficiency with which product can be manufactured, sold and delivered to customers.

Westwood Pipelines provides pipe, specialist fabrications and fittings to customers across the UK. There was a marked increase in the number of customers supplied and the volume of product sold during 2023, when held in comparison to 2022.

In the year ended December 2023, the Company was down against budget. The market experienced a reduction in raw material prices compared to the previous year and, as such, Westwood Pipelines managed to deliver an increase in operational margin and outperformed the market.

Westwood Pipelines Limited, operating as egeplast UK Limited, is therefore in a strong position to continue our growth strategy in the UK market and future market sectors.

The Company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£

11,700,691

12,287,539

Turnover (fall) growth

%

(5)

65

Gross profit

£

2,492,435

2,592,519

Gross profit margin

%

21

21

Profit before tax

£

521,490

827,965

Net profit margin

%

4

7

Principal risks and uncertainties

To encourage future growth and stability, the Company must be aware and responsive to the risks and uncertainties that face the industry. Inflation and the cost-of-living crisis is a central concern, as are energy prices.

Raw material supply will also be monitored closely as this presents another uncertainty to the Company going forward. However, the director and senior management team continue to use their experience of the industry to ensure risks are minimised and the Company continue to operate in a smooth and efficient manner.

Approved and authorised by the director on 1 March 2024
 

.........................................
S Jones
Director

 

Westwood Pipelines Limited

Director's Report for the Year Ended 31 December 2023

The Director presents his report and the financial statements for the year ended 31 December 2023.

Director of the Company

The Director who held office during the year was as follows:

S Jones

Financial instruments

Objectives and policies

Westwood Pipelines objectives include sustainability to grow the business while maintaining culture, employee wellbeing as well as continuing to develop as an employer of choice.

• Policies: Updating Company policies to be aligned with our group policies and objectives.

Price risk, credit risk, liquidity risk and cash flow risk

• Price Risk: Raw material risk in supply and price.
• Credit Risk: Credit risk is covered by Allianz Insurance.
• Liquidity Risk: Liquidity risk is covered by the support from the Egeplast Group and our financial partners.
• Cash Flow Risk: Cash flow is managed on a daily basis by the accounts team with a minimal risk.

Disclosure of information to the auditors

The Director has taken steps that he ought to have taken as a Director in order to make himself aware of any relevant audit information and to establish that the Company's auditors are aware of that information. The Director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.

Approved and authorised by the director on 1 March 2024
 

.........................................
S Jones
Director

 

Westwood Pipelines Limited

Statement of Director's Responsibilities

The Director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Director to prepare financial statements for each financial year. Under that law the Director has 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 Director must not approve the financial statements unless he is 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 Director is required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

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

 

Westwood Pipelines Limited

Independent Auditor's Report to the Members of Westwood Pipelines Limited

Opinion

We have audited the financial statements of Westwood Pipelines Limited (the 'Company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 Director's 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 original financial statements were authorised for issue.

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

Other information

The Director are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 matter 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

 

Westwood Pipelines Limited

Independent Auditor's Report to the Members of Westwood Pipelines Limited

Matters on which we are required to report by exception

In the light of our 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 and the Director's 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, 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 Director's remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of the Director

As explained more fully in the Statement of Director's Responsibilities [set out on page 4], the Director is 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 Director determines 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 Director is 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 Director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Discussions with management, including consideration of known or suspected instances of non-compliance.

Challenging assumptions and judgements made within significant accounting estimates and judgements.

Identification of laws and regulations central to the Company's operations and review of compliance with such laws.

Testing of journal entries and potential override of systems.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

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

 

Westwood Pipelines Limited

Independent Auditor's Report to the Members of Westwood Pipelines Limited

......................................
Kevin Hopper BFP FCA (Senior Statutory Auditor)
For and on behalf of Forrester Boyd, Statutory Auditor

26 South St. Mary's Gate
Grimsby
North East Lincolnshire
DN31 1LW

1 March 2024

 

Westwood Pipelines Limited

Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

11,700,691

12,287,539

Cost of sales

 

(9,208,256)

(9,695,020)

Gross profit

 

2,492,435

2,592,519

Administrative expenses

 

(1,913,199)

(1,740,660)

Operating profit

4

579,236

851,859

Other interest receivable and similar income

5

3,491

-

Interest payable and similar expenses

6

(61,237)

(23,894)

   

(57,746)

(23,894)

Profit before tax

 

521,490

827,965

Tax on profit

10

(132,943)

(205,180)

Profit for the financial year

 

388,547

622,785

 

Westwood Pipelines Limited

(Registration number: 04613101)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

11

2,421,344

2,306,780

Current assets

 

Stocks

12

1,961,739

1,533,185

Debtors

13

2,071,600

3,199,396

Cash at bank and in hand

 

1,112,014

2,127,956

14

5,145,353

6,860,537

Creditors: Amounts falling due within one year

15

(5,375,231)

(5,777,922)

Net current (liabilities)/assets

 

(229,878)

1,082,615

Total assets less current liabilities

 

2,191,466

3,389,395

Creditors: Amounts falling due after more than one year

15

(649,451)

(643,003)

Provisions for liabilities

16

(274,761)

(230,685)

Net assets

 

1,267,254

2,515,707

Capital and reserves

 

Called up share capital

18

400

400

Revaluation reserve

19

281,559

281,559

Retained earnings

19

985,295

2,233,748

Shareholders' funds

 

1,267,254

2,515,707

Approved and authorised by the director on 1 March 2024
 

.........................................
S Jones
Director

 

Westwood Pipelines Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

At 1 January 2023

300

281,559

2,233,748

2,515,607

Profit for the year

-

-

388,547

388,547

Dividends

-

-

(1,637,000)

(1,637,000)

At 31 December 2023

300

281,559

985,295

1,267,154

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

At 1 January 2022

300

281,559

1,610,963

1,892,822

Profit for the year

-

-

622,785

622,785

At 31 December 2022

300

281,559

2,233,748

2,515,607

 

Westwood Pipelines Limited

Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

388,547

622,785

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

92,804

77,177

Profit on disposal of tangible assets

(43,156)

-

Finance income

5

(3,491)

-

Finance costs

6

53,163

22,888

Income tax expense

10

132,943

205,180

 

620,810

928,030

Working capital adjustments

 

(Increase)/decrease in stocks

12

(428,554)

640,102

Decrease/(increase) in trade debtors

13

1,127,796

(211,950)

(Decrease)/increase in trade creditors

15

(476,522)

1,158,111

Decrease in deferred income, including government grants

 

(2,000)

(2,000)

Cash generated from operations

 

841,530

2,512,293

Income taxes paid

10

(13,222)

(13,469)

Net cash flow from operating activities

 

828,308

2,498,824

Cash flows from investing activities

 

Interest received

5

3,491

-

Acquisitions of tangible assets

(172,441)

(90,910)

Proceeds from sale of tangible assets

 

57,730

-

Net cash flows from investing activities

 

(111,220)

(90,910)

Cash flows from financing activities

 

Interest paid

6

(53,163)

(22,888)

Repayment of bank borrowing

 

(10,579)

(34,902)

Payments to finance lease creditors

 

(32,288)

(22,973)

Dividends paid

(1,637,000)

-

Net cash flows from financing activities

 

(1,733,030)

(80,763)

Net (decrease)/increase in cash and cash equivalents

 

(1,015,942)

2,327,151

Cash and cash equivalents at 1 January

 

2,127,956

(199,195)

Cash and cash equivalents at 31 December

 

1,112,014

2,127,956

 

Westwood Pipelines Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The Company is a private company limited by share capital, incorporated in United Kingdom.

The address of its registered office is:
Westwood Business Park
Belton Road
Sandtoft
Doncaster
DN8 5BF

These financial statements were authorised for issue by the director on 1 March 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

These financial statements cover the individual entity, Westwood Pipelines Limited.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in sterling which is the functional currency of the company and are rounded to the nearest pound.

Name of parent of group

These financial statements are consolidated in the financial statements of Egeplast UK Limited.

Going concern

The financial statements have been prepared on a going concern basis.

Judgements

The Directors have made a number of judgements in applying the Company's accounting policies, the most significant of which is in relation to depreciation charges and stock valuation. The measurement and recognition of amounts is closely controlled by the Directors' and involves judgements made using the years of experience and knowledge of the industry held.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The Company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the Company's activities.

 

Westwood Pipelines Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current 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 taxable income.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using rates and allowances that apply to the sale of the asset.

Tangible assets

Tangible assets, other than land and buildings, are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Land and buildings are stated in the statement of financial position under the revaluation model. These assets are held at fair value at the date of valuation less accumulated depreciation and impairment losses and revaluations are made with sufficient regularity to ensure carrying values do not differ materially to the fair value of assets at the balance sheet date.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

15% straight line

Fixture, fittings & equipment

25% straight line

Motor Vehicles

20% straight line

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

 

Westwood Pipelines Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Westwood Pipelines Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

3

Turnover

The analysis of the Company's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

11,677,691

12,265,539

Rental income from investment property

21,000

20,000

Grants received

2,000

2,000

11,700,691

12,287,539

4

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

92,804

77,177

Operating lease expense - plant and machinery

293,056

278,537

Profit on disposal of property, plant and equipment

(43,156)

-

5

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

3,491

-

6

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

49,125

23,053

Interest on obligations under finance leases and hire purchase contracts

4,038

(165)

Foreign exchange gains

8,074

1,006

61,237

23,894

7

Staff costs

The aggregate payroll costs (including Director's remuneration) were as follows:

2023
£

2022
£

Wages and salaries

1,174,925

953,923

Social security costs

120,556

96,042

Pension costs, defined contribution scheme

64,643

40,121

1,360,124

1,090,086

The average number of persons employed by the Company (including the Director) during the year, analysed by category was as follows:

 

Westwood Pipelines Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

2023
No.

2022
No.

Production

19

14

Administration and support

11

10

Other departments

7

7

37

31

8

Director's remuneration

The Director's remuneration for the year was as follows:

2023
£

2022
£

Remuneration

103,000

149,448

Contributions paid to money purchase schemes

6,000

6,000

109,000

155,448

During the year the number of Directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

1

1

9

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

16,500

14,000


 

10

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

88,868

-

Deferred taxation

Arising from origination and reversal of timing differences

44,075

205,180

Tax expense in the income statement

132,943

205,180

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 23.52% (2022 - 19%).

The differences are reconciled below:

 

Westwood Pipelines Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

2023
£

2022
£

Profit before tax

521,490

827,965

Corporation tax at standard rate

122,654

157,313

Effect of expense not deductible in determining taxable profit (tax loss)

4,556

2,049

Tax increase/(decrease) from effect of capital allowances and depreciation

2,338

(3,425)

Tax increase from other short-term timing differences

3,395

49,243

Total tax charge

132,943

205,180

Deferred tax

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Accelerated capital allowances

-

274,761

-

274,761

2022

Asset
£

Liability
£

Accelerated capital allowances

-

230,685

-

230,685

11

Tangible assets

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

2,029,449

246,184

471,851

101,528

2,849,012

Additions

873

33,643

88,477

98,948

221,941

Disposals

-

-

(71,088)

(44,287)

(115,375)

At 31 December 2023

2,030,322

279,827

489,240

156,189

2,955,578

Depreciation

At 1 January 2023

-

109,949

372,753

59,529

542,231

Charge for the year

-

35,323

28,841

28,640

92,804

Eliminated on disposal

-

-

(68,384)

(32,417)

(100,801)

At 31 December 2023

-

145,272

333,210

55,752

534,234

Carrying amount

At 31 December 2023

2,030,322

134,555

156,030

100,437

2,421,344

At 31 December 2022

2,029,448

51,307

184,026

41,999

2,306,780

Included within the net book value of land and buildings above is £2,030,322 (2022 - £2,029,448) in respect of freehold land and buildings.
 

Revaluation

The fair value of the Company's Land and buildings was revalued on 31 December 2020 by an independent valuer.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £1,642,438 (2022 - £1,641,565).

 

Westwood Pipelines Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2023
£

2022
£

Motor Vehicles

67,829

26,039

     

The carrying amounts have been pledged as security for the liability to which the asset relates.

12

Stocks

2023
£

2022
£

Raw materials and consumables

193,563

163,160

Finished goods and goods for resale

1,768,176

1,370,025

1,961,739

1,533,185

13

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

2,018,155

2,322,553

Amounts owed by related parties

23

-

848,818

Other debtors

 

10,993

-

Prepayments

 

42,452

28,025

   

2,071,600

3,199,396

14

Cash and cash equivalents

2023
£

2022
£

Cash on hand

517

238

Cash at bank

1,111,497

2,127,718

1,112,014

2,127,956

 

Westwood Pipelines Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

15

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

20

68,196

68,011

Trade creditors

 

646,990

813,081

Amounts due to related parties

23

3,511,148

4,274,744

Social security and other taxes

 

358,282

497,942

Outstanding defined contribution pension costs

 

5,132

3,532

Other payables

 

595,672

-

Accruals

 

33,146

37,593

Corporation tax liability

10

75,646

-

Deferred income

 

81,019

83,019

 

5,375,231

5,777,922

Due after one year

 

Loans and borrowings

20

649,451

643,003

16

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2023

230,685

230,685

Increase (decrease) in existing provisions

44,076

44,076

At 31 December 2023

274,761

274,761

17

Pension and other schemes

Defined contribution pension scheme

The Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Company to the scheme and amounted to £64,643 (2022 - £40,121).

Contributions totalling £5,132 (2022 - £3,532) were payable to the scheme at the end of the year and are included in creditors.

 

Westwood Pipelines Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

18

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

Ordinary A shares of £1 each

100

100

100

100

Ordinary B shares of £1 each

100

100

100

100

Ordinary C shares of £1 each

100

100

100

100

 

400

400

400

400

Rights, preferences and restrictions

Ordinary Shares have the following rights, preferences and restrictions:
Normal voting and participation rights

19

Reserves

Called Up Share Capital

Called up share capital comprises of the value of issued share capital at par.

Retained Earnings

The profit and loss account consists of profits made by the company attributable to the shareholders of the company.

Revaluation Reserve

The revaluation reserve relates to land and building revaluation

 

Westwood Pipelines Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

20

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

607,273

618,964

Hire purchase contracts

42,178

24,039

649,451

643,003

2023
£

2022
£

Current loans and borrowings

Bank borrowings

40,019

38,907

Hire purchase contracts

28,177

29,104

68,196

68,011

Bank borrowings
Within bank borrowings is a loan with balances which is denominated in sterling and of which interest is charged at 2% per annum over the Base Rate. The carrying amount at the year end is £647,292 (2022: £657,871).

Of the total amount outstanding, £447,196 (2022 - £463,335) is due to be repaid after 5 years. These amounts are secured by way of a fixed and floating charge on the property at Westwood Business Park, Belton Road, Sandtoft.


Other borrowings
Assets purchased under hire purchase and finance lease agreements is denominated in sterling. The carrying amount at year end is £70,356 (2022: £53,143).

These amounts are secured on the assets they finance.

 

Westwood Pipelines Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

21

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

193,239

320,217

Later than one year and not later than five years

33,354

59,081

226,593

379,298

The amount of non-cancellable operating lease payments recognised as an expense during the year was £293,056 (2022 - £278,537).

22

Analysis of changes in net debt

At 1 January 2023
£

Financing cash flows
£

New finance leases
£

At 31 December 2023
£

Cash and cash equivalents

Cash

2,127,956

(1,015,942)

-

1,112,014

Borrowings

Long term borrowings

618,964

(11,691)

-

607,273

Short term borrowings

38,907

1,112

-

40,019

Lease liabilities

53,143

(32,287)

49,500

70,356

711,014

(42,866)

49,500

717,648

 

2,838,970

(1,058,808)

49,500

1,829,662

23

Related party transactions

The company has taken advantage of the exemption in section 33 of FRS 102 'Related Party Disclosures' from disclosing transactions with other members of the group in which any subsidiary which is a party to the transaction wholly owned by the group.

 

Westwood Pipelines Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

24

Relationship between entity and parents

The parent of the largest group in which these financial statements are consolidated is Egeplast UK Limited, incorporated in the United Kingdom.

The ultimate parent company is Egeplast International GMBH, incorporated in Germany.

Egeplast International GMBH is the company's controlling related party by virtue of its 95% shareholding interest in the parent company
.