Company registration number 00638042 (England and Wales)
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 11
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
9,715,344
7,036,764
Investment property
4
500,000
480,000
10,215,344
7,516,764
Current assets
Stocks
138,774
171,948
Debtors
5
3,171,918
1,871,827
Cash at bank and in hand
130,046
730,577
3,440,738
2,774,352
Creditors: amounts falling due within one year
6
(4,079,760)
(2,365,782)
Net current (liabilities)/assets
(639,022)
408,570
Total assets less current liabilities
9,576,322
7,925,334
Creditors: amounts falling due after more than one year
7
(1,408,226)
(778,141)
Provisions for liabilities
(1,302,289)
(784,388)
Net assets
6,865,807
6,362,805
Capital and reserves
Called up share capital
2,000
2,000
Profit and loss reserves
6,863,807
6,360,805
Total equity
6,865,807
6,362,805
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
31 March 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 13 February 2024 and are signed on its behalf by:
A M Bond
Director
Company registration number 00638042 (England and Wales)
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2021
2,000
5,660,477
5,662,477
Year ended 31 March 2022:
Profit and total comprehensive income
-
800,328
800,328
Dividends
-
(100,000)
(100,000)
Balance at 31 March 2022
2,000
6,360,805
6,362,805
Year ended 31 March 2023:
Profit and total comprehensive income
-
653,002
653,002
Dividends
-
(150,000)
(150,000)
Balance at 31 March 2023
2,000
6,863,807
6,865,807
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
1
Accounting policies
Company information
Whitfire Shavings and Sawdust Supplies Limited is a private company limited by shares incorporated in England and Wales. The registered office is Heatherfield Works, Church Lane, Farington, Nr Preston, PR5 3RD.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% straight line
Plant and equipment
15% reducing balance,10,20 and 25 years straight line
Fixtures and fittings
15% reducing balance basis
Motor vehicles
25% reducing balance basis and 10 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
1.4
Investment properties
Investment propertiy, 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. The surplus or deficit on revaluation is recognised in the profit and loss account.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
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.
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
1.8
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.
Directors loans and loans from close family members
The company has treated all loans from directors who are shareholders and loans from close family members of directors as basic financial liabilities and are initially recorded at transaction price.
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 and bank loans, that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts 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.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
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.
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 7 -
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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
37
33
3
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2022
1,657,655
6,485,954
8,746
2,817,255
10,969,610
Additions
747,791
1,640,700
1,147,846
3,536,337
Disposals
(202,400)
(202,400)
At 31 March 2023
2,405,446
7,924,254
8,746
3,965,101
14,303,547
Depreciation and impairment
At 1 April 2022
129,559
2,263,788
6,534
1,532,965
3,932,846
Depreciation charged in the year
46,904
415,002
332
329,719
791,957
Revaluation
(136,600)
(136,600)
At 31 March 2023
176,463
2,542,190
6,866
1,862,684
4,588,203
Carrying amount
At 31 March 2023
2,228,983
5,382,064
1,880
2,102,417
9,715,344
At 31 March 2022
1,528,096
4,222,166
2,212
1,284,290
7,036,764
Freehold land and buildings with a carrying amount of £2,228,983 (2022 - £1,521,714) have been pledged to secure borrowings of the company.
Land and buildings includes £nil (2022-£40,441) in respect of assets under construction on which no depreciation has been charged.
Motor vehicles includes £nil (2022-£5,950) in respect of assets under construction on which no depreciation has been charged.
4
Investment property
2023
£
Fair value
At 1 April 2022
480,000
Revaluations
20,000
At 31 March 2023
500,000
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
4
Investment property
(Continued)
- 9 -
Investment property comprises £500,000. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31st March 2023 by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2023
2022
£
£
Cost
492,090
492,090
Accumulated depreciation
-
-
Carrying amount
492,090
492,090
Investment properties with a carrying amount of £500,000 (2022 - £480,000) have been pledged to secure borrowings of the company.
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,962,266
1,720,099
Corporation tax recoverable
28,140
Prepayments and accrued income
181,512
151,728
3,171,918
1,871,827
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
651,471
3,414
Amounts owed to credit institutions
63,120
57,764
Obligations under finance leases
614,605
615,604
Trade creditors
2,367,652
1,250,114
Corporation tax
82,526
Other taxation and social security
138,929
213,314
Other creditors
229,445
82,197
Accruals and deferred income
14,538
60,849
4,079,760
2,365,782
The bank loans are secured by a debenture comprising fixed and floating charges over all the assets and undertakings of the company including all present and future freehold and leasehold property, book and other debts, chattels , goodwill and uncalled capital, both present and future. Together with First Legal Mortgages over the freehold properties of the company known as the Premises in Green Lane, Dene Croft and Bradleigh.
The obligations under finance leases are secured on the assets concerned.
7
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans
615,064
Amounts owed to credit institutions
93,356
156,476
Obligations under finance leases
699,806
489,665
Other borrowings
132,000
1,408,226
778,141
The bank loans are secured by a debenture comprising fixed and floating charges over all the assets and undertakings of the company including all present and future freehold and leasehold property, book and other debts, chattels , goodwill and uncalled capital, both present and future. Together with First Legal Mortgages over the freehold properties of the company known as the Premises in Green Lane, Dene Croft and Bradleigh.
The obligations under finance leases are secured on the assets concerned.
8
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
84,849
74,604
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
At the balance sheet date £1,490 (2022 £1,296) was outstanding for pension commitments.
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
9
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Acquisition of property, plant and equipment
4,600,000
883,560
10
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
307,320
436,080
11
Related party transactions
At the balance sheet date the company owed £229,445 (2022 £214,197) to directors and their close family members on which no interest is charged of which £nil (2022 £132,000) falls due after one year.
During the year the company had the following transactions with A1 Biomass Limited, a company beneficially owned by A M Bond a director:
Goods and services sold on normal trading terms, the value of the transactions amounted to £56,230 (2022 £71,400) and the balance owed at the end of the year was £12,869 (2022 £nil).
Goods and services purchased on normal trading terms, the value of the transactions amounted to £10,743 (2022-£nil) and the balance owed at the end of the year was £11,381 (2022 £nil).
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