Company registration number 06637109 (England and Wales)
AVON VALLEY HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
AVON VALLEY HOLDINGS LIMITED
COMPANY INFORMATION
Director
C S Brammall
Company number
06637109
Registered office
King Street
Wilton
Salisbury
Wiltshire
United Kingdom
SP2 0AY
Auditor
Azets Audit Services
Secure House
Lulworth Close
Chandlers Ford
Southampton
Hampshire
SO53 3TL
AVON VALLEY HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 19
AVON VALLEY HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 1 -

The director presents the strategic report for the year ended 31 August 2023.

Review of the business

Turnover for the year ended 31 August 2023 remained consistent with the prior year at £140k. Gross margin, on a continuing basis, has decreased to 89.5% (2022: 93.6%).


Profit before tax for the year remained consistent with the prior year at £107k. The company ended the year with net assets totalling £1.46m (2022: £1.36m). Cash in hand decreased to £nil (2022: £6k).

 

No dividends were paid by the company during the year (2022: £nil).

Principal risks and uncertainties

Market: Competition from key competitors and pressure on margins.

The company has little competition as it only services group companies. The company is continually looking at costs to make sure it remains as efficient as possible.

 

IT Systems: Sufficiently rapid access to and accuracy of data; cyber security.

The company continues to attach great importance to its IT systems and their regular upgrading with direct participation at board level.

 

Inflation & Supply Chain: The recent world events have caused significant upward pressure on prices and damage to supply chains. The company continues to work hard with suppliers to mitigate these effects and to seek ever greater efficiency in sourcing.

 

Reputation: Quality of products and services; information security.

The quality of product is of paramount importance to the company. Great care is taken to work with the right suppliers to maintain and enhance standards. The company places great emphasis on security awareness, particularly at mid and high management levels.

 

Credit and cash flow: Any concentration of credit with individual customers and relaxation of good credit management. The company ensures that appropriate due diligence is carried out on new customers and maintains a strong emphasis on the management of good credit control overall.

 

Interest rates: Exposure to cash flow interest rate risk.

The company has traditionally ensured that it has a very low level of borrowing relative to its assets and thus has no significant exposure to interest rate risk.

 

Liquidity: Exposure to inadequate cash flows.

The combined availability of bank balances and continued strong positive cash flows prevents any significant exposure to liquidity risk.

On behalf of the board

C S Brammall
Director
16 April 2024
AVON VALLEY HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -

The director presents his annual report and financial statements for the year ended 31 August 2023.

Principal activities

The company is in an intermediate parent of a group whose principal activities involve the manufacture and wholesale of carpets.

Results and dividends

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

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

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

C S Brammall
Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

Statement of director's responsibilities

The director is responsible 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:

 

 

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 them 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.

Statement of disclosure to auditor

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

AVON VALLEY HOLDINGS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 3 -
On behalf of the board
C S Brammall
Director
16 April 2024
AVON VALLEY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF AVON VALLEY HOLDINGS LIMITED
- 4 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

AVON VALLEY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF AVON VALLEY HOLDINGS LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, 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 has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

AVON VALLEY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF AVON VALLEY HOLDINGS LIMITED
- 6 -

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

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

 

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

 

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

 

 

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

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Jon Brand FCA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
19 April 2024
Chartered Accountants
Statutory Auditor
Secure House
Lulworth Close
Chandlers Ford
Southampton
Hampshire
SO53 3TL
AVON VALLEY HOLDINGS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
140,192
140,004
Administrative expenses
(14,717)
(8,898)
Operating profit
4
125,475
131,106
Interest receivable and similar income
6
-
0
1,250
Interest payable and similar expenses
7
(18,242)
(25,053)
Profit before taxation
107,233
107,303
Tax on profit
8
(21,775)
(20,085)
Profit for the financial year
85,458
87,218

The profit and loss account has been prepared on the basis that all operations are continuing operations.

AVON VALLEY HOLDINGS LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2023
31 August 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investment property
9
1,500,000
1,500,000
Investments
10
650,001
650,001
2,150,001
2,150,001
Current assets
Debtors
12
22,695
32,445
Cash at bank and in hand
-
0
5,729
22,695
38,174
Creditors: amounts falling due within one year
13
(434,472)
(436,814)
Net current liabilities
(411,777)
(398,640)
Total assets less current liabilities
1,738,224
1,751,361
Creditors: amounts falling due after more than one year
14
(294,854)
(393,449)
Provisions for liabilities
Deferred tax liability
16
2,378
2,378
(2,378)
(2,378)
Net assets
1,440,992
1,355,534
Capital and reserves
Called up share capital
17
39,000
39,000
Share premium account
3
3
Profit and loss reserves
1,401,989
1,316,531
Total equity
1,440,992
1,355,534
The financial statements were approved and signed by the director and authorised for issue on 16 April 2024
C S Brammall
Director
Company Registration No. 06637109
AVON VALLEY HOLDINGS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023
- 9 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 September 2021
39,000
3
1,229,313
1,268,316
Year ended 31 August 2022:
Profit and total comprehensive income for the year
-
-
87,218
87,218
Balance at 31 August 2022
39,000
3
1,316,531
1,355,534
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
-
85,458
85,458
Balance at 31 August 2023
39,000
3
1,401,989
1,440,992
AVON VALLEY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
- 10 -
1
Accounting policies
Company information

Avon Valley Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is King Street, Wilton, Salisbury, Wiltshire, United Kingdom, SP2 0AY.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Wylye Valley Holdings Limited. These consolidated financial statements are available from its registered office, King Street, Wilton, Salisbury, United Kingdom, SP2 0AY.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. In making his assessment, the director has reviewed the balance sheet and likely future cash flows of the business. He has also considered the facilities and cash that are in place at this point in time and at least one year from the date that the fiancial statements will be signed. Thus the director believes it is appropriate to continue to adopt the going concern basis of accounting in preparing these financial statements. true

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for 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.

AVON VALLEY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 11 -
1.4
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

Property rented to a group entity is accounted for at fair value with changes in fair value recognised in profit or loss.

1.5
Fixed asset investments

Investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

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

AVON VALLEY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 12 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

AVON VALLEY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 13 -
1.8
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.

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.

1.9
Employee benefits

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

1.10
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.

AVON VALLEY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 14 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

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

Determine whether borrowings are classed as current or non-current borrowings

These decisions depend on the cash flow requirements of the company and whether the borrowings in the company can be repaid.

Determine whether there are any indicators of impairment of assets

Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Investment property valuation

Investment property is valued by chartered surveyors not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and is based on recent market transactions on arm’s length terms for similar properties.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Rental income
140,192
140,004
2023
2022
£
£
Other revenue
Interest income
-
1,250
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
4,000
3,700
AVON VALLEY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 15 -
5
Employees

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

2023
2022
Number
Number
Director
1
1
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
-
0
1,250
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
18,242
25,053
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
21,775
19,240
Adjustments in respect of prior periods
-
0
84
Total current tax
21,775
19,324
Deferred tax
Origination and reversal of timing differences
-
0
761
Total tax charge
21,775
20,085
AVON VALLEY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
8
Taxation
(Continued)
- 16 -

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

2023
2022
£
£
Profit before taxation
107,233
107,303
Expected tax charge based on the standard rate of corporation tax in the UK of 21.50% (2022: 19.00%)
23,055
20,388
Adjustments in respect of prior years
-
0
84
Group relief
(1,280)
(1,148)
Deferred tax adjustments
-
0
761
Taxation charge for the year
21,775
20,085
9
Investment property
2023
£
Fair value
At 1 September 2022 and 31 August 2023
1,500,000

The investment property was revalued as at 31 August 2020 by Woolly & Wallis Chartered Surveyors who are external to the company. The basis of this valuation was market value. The director does not deem there to be any change in fair value to the investment property at the balance sheet date.

 

10
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
11
650,001
650,001

 

11
Subsidiaries

Details of the company's subsidiaries at 31 August 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
The Wilton Carpet Factory Limited
King Street, Wilton, Salisbury, Wiltshire, SP2 0AY
Ordinary shares
100.00
AVON VALLEY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 17 -
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
121
121
Amounts owed by group undertakings
21,582
32,124
Other debtors
992
200
22,695
32,445
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
15
103,656
100,454
Trade creditors
17
-
0
Corporation tax
21,775
19,240
Other creditors
300,000
300,000
Accruals and deferred income
9,024
17,120
434,472
436,814
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
15
294,854
393,449
Amounts included above which fall due after five years are as follows:
Payable by instalments
15,751
56,235
15
Loans and overdrafts
2023
2022
£
£
Bank loans
398,502
493,903
Bank overdrafts
8
-
0
398,510
493,903
Payable within one year
103,656
100,454
Payable after one year
294,854
393,449
AVON VALLEY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
15
Loans and overdrafts
(Continued)
- 18 -

The first bank loan is denominated in pound sterling with a nominal interest rate of 2% + base rate, and the final instalment is due on 17 December 2028. The carrying amount as at the balance sheet date is £212,177 (2022: £245,557).

 

The second bank loan is denominated in pound sterling with a nominal interest rate of 2.75% + base rate, and the final instalment is due on 30 April 2026. The carrying amount as at the balance sheet date is £186,325 (2022: £248,346).

 

The bank loans and overdrafts are secured by a fixed and floating charge over the investment property of the company.

16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
2,378
2,378
There were no deferred tax movements in the year.
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
39,000
39,000
39,000
39,000
18
Financial commitments, guarantees and contingent liabilities

The company has a set off agreement in place with Wylye Valley Holdings Limited and The Wilton Carpet Factory Limited to enable any borrowings within these companies to be secured on the assets of Avon Valley Holdings Limited. The total potential liability as at the balance sheet date is £nil (2022: £nil).

19
Related party transactions

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Amounts payable to related party
300,000
300,000

The amounts payable to the related party is in respect of a £300,000 (2022: £300,000) loan repayable on demand with 0% interest from another entity with common directors.

AVON VALLEY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 19 -
20
Ultimate controlling party

The immediate and ultimate parent company, which draws up consolidated financial statements, is Wylye Valley Holdings Limited, incorporated in England and Wales. The registered office address is King Street, Wilton, Salisbury, United Kingdom, SP2 0AY.

 

 

2023-08-312022-09-01falseCCH SoftwareCCH Accounts Production 2023.300C S Brammallfalse066371092022-09-012023-08-3106637109bus:Director12022-09-012023-08-3106637109bus:RegisteredOffice2022-09-012023-08-31066371092023-08-31066371092021-09-012022-08-3106637109core:RetainedEarningsAccumulatedLosses2021-09-012022-08-3106637109core:RetainedEarningsAccumulatedLosses2022-09-012023-08-31066371092022-08-3106637109core:CurrentFinancialInstrumentscore:WithinOneYear2023-08-3106637109core:CurrentFinancialInstrumentscore:WithinOneYear2022-08-3106637109core:Non-currentFinancialInstrumentscore:AfterOneYear2023-08-3106637109core:Non-currentFinancialInstrumentscore:AfterOneYear2022-08-3106637109core:CurrentFinancialInstruments2023-08-3106637109core:CurrentFinancialInstruments2022-08-3106637109core:ShareCapital2023-08-3106637109core:ShareCapital2022-08-3106637109core:SharePremium2023-08-3106637109core:SharePremium2022-08-3106637109core:RetainedEarningsAccumulatedLosses2023-08-3106637109core:RetainedEarningsAccumulatedLosses2022-08-3106637109core:ShareCapital2021-08-3106637109core:SharePremium2021-08-3106637109core:RetainedEarningsAccumulatedLosses2021-08-3106637109core:UKTax2022-09-012023-08-3106637109core:UKTax2021-09-012022-08-31066371092022-08-3106637109core:Non-currentFinancialInstruments2023-08-3106637109core:Non-currentFinancialInstruments2022-08-3106637109bus:PrivateLimitedCompanyLtd2022-09-012023-08-3106637109bus:FRS1022022-09-012023-08-3106637109bus:Audited2022-09-012023-08-3106637109bus:FullAccounts2022-09-012023-08-31xbrli:purexbrli:sharesiso4217:GBP