14 31/05/2023 2023-05-31 false false false false true false false false false false false false false true false false true false false false false false true false No description of principal activities is disclosed 2022-06-01 Sage Accounts Production 21.0 - FRS102_2021 xbrli:pure xbrli:shares iso4217:GBP NI014628 2022-06-01 2023-05-31 NI014628 2023-05-31 NI014628 2022-05-31 NI014628 2021-06-01 2022-05-31 NI014628 2022-05-31 NI014628 core:LandBuildings core:OwnedOrFreeholdAssets 2022-06-01 2023-05-31 NI014628 core:PlantMachinery 2022-06-01 2023-05-31 NI014628 core:FurnitureFittingsToolsEquipment 2022-06-01 2023-05-31 NI014628 core:MotorVehicles 2022-06-01 2023-05-31 NI014628 bus:RegisteredOffice 2022-06-01 2023-05-31 NI014628 bus:OrdinaryShareClass1 2022-06-01 2023-05-31 NI014628 bus:LeadAgentIfApplicable 2022-06-01 2023-05-31 NI014628 bus:Director1 2022-06-01 2023-05-31 NI014628 bus:Director2 2022-06-01 2023-05-31 NI014628 bus:Director3 2022-06-01 2023-05-31 NI014628 bus:Director4 2022-06-01 2023-05-31 NI014628 bus:CompanySecretary1 2022-06-01 2023-05-31 NI014628 core:WithinOneYear 2023-05-31 NI014628 core:WithinOneYear 2022-05-31 NI014628 core:LandBuildings core:OwnedOrFreeholdAssets 2022-05-31 NI014628 core:PlantMachinery 2022-05-31 NI014628 core:FurnitureFittingsToolsEquipment 2022-05-31 NI014628 core:MotorVehicles 2022-05-31 NI014628 core:LandBuildings core:OwnedOrFreeholdAssets 2023-05-31 NI014628 core:PlantMachinery 2023-05-31 NI014628 core:FurnitureFittingsToolsEquipment 2023-05-31 NI014628 core:MotorVehicles 2023-05-31 NI014628 core:UKTax 2022-06-01 2023-05-31 NI014628 core:UKTax 2021-06-01 2022-05-31 NI014628 bus:AllOrdinaryShares 2022-06-01 2023-05-31 NI014628 bus:AllOrdinaryShares 2021-06-01 2022-05-31 NI014628 core:RetainedEarningsAccumulatedLosses 2022-05-31 NI014628 core:RetainedEarningsAccumulatedLosses 2021-05-31 NI014628 core:RetainedEarningsAccumulatedLosses 2023-05-31 NI014628 core:RetainedEarningsAccumulatedLosses 2022-05-31 NI014628 core:ShareCapital 2023-05-31 NI014628 core:ShareCapital 2022-05-31 NI014628 bus:OrdinaryShareClass1 core:ShareCapital 2023-05-31 NI014628 bus:OrdinaryShareClass1 core:ShareCapital 2022-05-31 NI014628 core:CostValuation core:Non-currentFinancialInstruments 2022-05-31 NI014628 core:Non-currentFinancialInstruments core:OtherIncreaseDecreaseInInvestments 2023-05-31 NI014628 core:CostValuation core:Non-currentFinancialInstruments 2023-05-31 NI014628 core:Non-currentFinancialInstruments 2023-05-31 NI014628 core:Non-currentFinancialInstruments 2022-05-31 NI014628 core:LandBuildings core:OwnedOrFreeholdAssets 2022-05-31 NI014628 core:PlantMachinery 2022-05-31 NI014628 core:FurnitureFittingsToolsEquipment 2022-05-31 NI014628 core:MotorVehicles 2022-05-31 NI014628 bus:Director2 2023-05-31 NI014628 bus:Director2 2022-05-31 NI014628 bus:FRS102 2022-06-01 2023-05-31 NI014628 bus:Audited 2022-06-01 2023-05-31 NI014628 bus:FullAccounts 2022-06-01 2023-05-31 NI014628 bus:LargeMedium-sizedCompaniesRegimeForAccounts 2022-06-01 2023-05-31 NI014628 bus:PrivateLimitedCompanyLtd 2022-06-01 2023-05-31 NI014628 core:OtherProductsServices 1 2022-06-01 2023-05-31 NI014628 1 2021-06-01 2022-05-31
Company registration number: NI014628
T.J. BOOTH & SONS LIMITED
FINANCIAL STATEMENTS
31 May 2023
T.J. BOOTH & SONS LIMITED
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023
_________________________________________________________________________________________
Contents
Directors and other information
Strategic report
Directors report
Independent auditor's report to the members
Profit & loss account
Balance sheet
Statement of cash flows
Notes to the financial statements
T.J. BOOTH & SONS LIMITED
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023
_________________________________________________________________________________________
Company Information
Directors Mrs Joan Booth
Mr Graham Booth
Mr David Booth
Mrs Jillian Booth
Secretary Mrs Joan Booth
Company number NI014628
Registered office Cullembrone
Lisdoart
Ballygawley
Co Tyrone
BT70 2LZ
Auditor A McCrory & Co Ltd
15b Molesworth Street
Cookstown
Co Tyrone
BT80 8NX
Bankers Ulster Bank Ltd
20 William Street
Cookstown
Co Tyrone
BT80 8ND
Solicitors Simmons Meglaughlin & Orr
20 Northland Row
Dungannon
Co Tyrone
BT71 6BL
T.J. BOOTH & SONS LIMITED
STRATEGIC REPORT
YEAR ENDED 31 MAY 2023
_______________________________________________________________________________
Review of the business
The results for the year were as expected for the year. The directors are confident that this level of business will be maintained. The year end financial position was satisfactory.
Environment
The company recognises its corporate responsibility to carry out its operations whilst minimising environmental impacts. The directors' continued aim is to comply with all applicable environmental legislation, prevent polution and reduce waste wherever possible.
Health and Safety
The company is committed to achieving the highest practicable standards in health and safety management and strives to make all premises safe environments for employees and customers alike.
Financial Risk Management objectives and policies
The company has in place a risk management programme that seeks to limit the adverse affects on the financial performance of the company by monitoring levels of debt finance and related finance cost. The risk management policies are set and implemented by the board of directors.
Foreign Exchange Risk
With the exporting and importing of goods, a minimal part of the companies revenue and expenses, the company is exposed to little foreign exchange risk in its normal course of business.
This report was approved by the board of directors on 20 February 2024 and signed on behalf of the board by:
Mr Graham Booth
Director
T.J. BOOTH & SONS LIMITED
DIRECTORS REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
_________________________________________________________________________________________
The directors present their report and the financial statements of the company for the year ended 31 May 2023.
Directors
The directors who served the company during the year were as follows:
Mrs Joan Booth
Mr Graham Booth
Mr David Booth
Mrs Jillian Booth
Dividends
Particulars of recommended dividends are detailed in note 11 to the financial statements.
Future developments
The company is currently in the process of accumulating funds to enable them to be in a position to build new office buildings at their registered office address and to invest in new plant and equipment.
Financial instruments
The financial risk management objectives and policies are as set out in the strategic report.
Disclosure of information in the strategic report.
The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. This includes information that would have been included in the business review and the principal risks and uncertainties.
Directors responsibilities statement
The directors are responsible for preparing the strategic report, directors report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 20 February 2024 and signed on behalf of the board by:
Mr Graham Booth
Director
T.J. BOOTH & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF
T.J. BOOTH & SONS LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
_________________________________________________________________________________________
Opinion
We have audited the financial statements of T.J. Booth & Sons Limited (the 'company') for the year ended 31 May 2023 which comprise the Profit & loss account, Balance sheet, 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 FRS 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 May 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’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 directors use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters 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 the returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - 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. 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. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 auditors 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.
Aisling McCrory FCA (Senior Statutory Auditor)
For and on behalf of
A McCrory & Co Ltd
Chartered Accountant and Registered Auditor
15b Molesworth Street
Cookstown
Co Tyrone
BT80 8NX
20 February 2024
T.J. BOOTH & SONS LIMITED
PROFIT & LOSS ACCOUNT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
_________________________________________________________________________________________
2023 2022
Note £ £
Turnover 4 32,906,830 26,957,105
Cost of sales ( 30,566,556) ( 23,904,687)
_______ _______
Gross profit 2,340,274 3,052,418
Administrative expenses ( 897,647) ( 848,182)
_______ _______
Operating profit 5 1,442,627 2,204,236
Income from other fixed asset investments 8 20,255 -
Other interest receivable and similar income 9 34,006 1,526
Profit before taxation 1,496,888 2,205,762
Tax on profit 10 ( 294,902) ( 323,991)
_______ _______
Profit for the financial year and total comprehensive income 1,201,986 1,881,771
_______ _______
Dividends declared and paid or payable during the year 11 ( 215,680) ( 172,400)
Retained earnings at the start of the year 13,858,201 12,148,830
_______ _______
Retained earnings at the end of the year 14,844,507 13,858,201
_______ _______
All the activities of the company are from continuing operations.
T.J. BOOTH & SONS LIMITED
BALANCE SHEET (CONTINUED)
31 MAY 2023
_________________________________________________________________________________________
2023 2022
Note £ £ £ £
Fixed assets
Tangible assets 12 456,823 468,784
Investments 13 515,255 495,000
_______ _______
972,078 963,784
Current assets
Stocks 14 309,950 788,072
Debtors 15 7,955,101 7,147,995
Cash at bank and in hand 6,996,806 6,003,709
_______ _______
15,261,857 13,939,776
Creditors: amounts falling due
within one year 16 ( 1,289,428) ( 945,359)
_______ _______
Net current assets 13,972,429 12,994,417
_______ _______
Total assets less current liabilities 14,944,507 13,958,201
_______ _______
Net assets 14,944,507 13,958,201
_______ _______
Capital and reserves
Called up share capital 18 100,000 100,000
Profit and loss account 19 14,844,507 13,858,201
_______ _______
Shareholders funds 14,944,507 13,958,201
_______ _______
These financial statements were approved by the board of directors and authorised for issue on 20 February 2024 , and are signed on behalf of the board by:
Mr Graham Booth Mr David Booth
Director Director
Company registration number: NI014628
T.J. BOOTH & SONS LIMITED
STATEMENT OF CASH FLOWS
YEAR ENDED 31 MAY 2023
________________________________________________________________________________________
2023 2022
£ £
Cash flows from operating activities
Profit for the financial year 1,201,986 1,881,771
Adjustments for:
Depreciation of tangible assets 138,798 131,548
Income from other fixed asset investments ( 20,255) -
Other interest receivable and similar income ( 34,006) ( 1,526)
Tax on profit 294,902 323,991
Accrued expenses/(income) 41,821 ( 11,984)
Changes in:
Stocks 478,122 ( 242,195)
Trade and other debtors ( 807,106) ( 968,735)
Trade and other creditors 392,533 136,102
_______ _______
Cash generated from operations 1,686,795 1,248,972
Interest received 34,006 1,526
Tax paid ( 385,187) ( 295,078)
_______ _______
Net cash from operating activities 1,335,614 955,420
_______ _______
Cash flows from investing activities
Purchase of tangible assets ( 126,837) ( 66,886)
Purchase of other investments - ( 495,000)
_______ _______
Net cash used in investing activities ( 126,837) ( 561,886)
_______ _______
Cash flows from financing activities
Equity dividends paid ( 215,680) ( 172,400)
_______ _______
Net cash used in financing activities ( 215,680) ( 172,400)
_______ _______
Net increase/(decrease) in cash and cash equivalents 993,097 221,134
Cash and cash equivalents at beginning of year 6,003,709 5,782,575
_______ _______
Cash and cash equivalents at end of year 6,996,806 6,003,709
_______ _______
T.J. BOOTH & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
_________________________________________________________________________________________
1. General information
The company is a private company limited by shares, registered in N Ireland. The address of the registered office is TJ Booth & Sons Ltd, Cullembrone, Lisdoart, Ballygawley, Co Tyrone, BT70 2LZ.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to profit or loss.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property - 4 % straight line
Plant and machinery - 20 % reducing balance
Fittings fixtures and equipment - 20 % straight line
Motor vehicles - 25 % reducing balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Fixed asset investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4. Turnover
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom and Ireland.
5. Operating profit
Operating profit is stated after charging/(crediting):
2023 2022
£ £
Depreciation of tangible assets 138,798 131,548
Impairment of trade debtors 446,452 178,690
Foreign exchange differences ( 44,502) ( 15,170)
Fees payable for the audit of the financial statements 7,500 7,500
_______ _______
6. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023 2022
Management & Admin 7 7
Sales 2 2
Operatives 5 9
_______ _______
14 18
_______ _______
The aggregate payroll costs incurred during the year were:
2023 2022
£ £
Wages and salaries 427,810 375,803
Other pension costs 6,633 254,884
_______ _______
434,443 630,687
_______ _______
7. Directors remuneration
The directors aggregate remuneration in respect of qualifying services was:
2023 2022
£ £
Remuneration 52,051 41,999
Company contributions to pension schemes in respect of qualifying services - 240,000
_______ _______
52,051 281,999
_______ _______
8. Income from other fixed asset investments
2023 2022
£ £
Income from other fixed asset investments 20,255 (-)
_______ _______
9. Other interest receivable and similar income
2023 2022
£ £
Bank deposits 34,006 1,526
_______ _______
10. Tax on profit
Major components of tax expense
2023 2022
£ £
Current tax:
UK current tax expense 294,902 380,384
Adjustments in respect of previous periods - ( 56,393)
_______ _______
Tax on profit 294,902 323,991
_______ _______
Reconciliation of tax expense
The tax assessed on the profit for the year is lower than (2022: lower than) the standard rate of corporation tax in the UK of 20.00 % (2022: 19.00%).
2023 2022
£ £
Profit before taxation 1,496,888 2,205,762
_______ _______
Profit multiplied by rate of tax 299,378 419,095
Adjustments in respect of prior periods - ( 56,393)
Effect of capital allowances and depreciation ( 4,476) 8,533
Research and Development Relief - ( 47,244)
_______ _______
Tax on profit 294,902 323,991
_______ _______
11. Dividends
Equity dividends
2023 2022
£ £
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year) 215,680 172,400
_______ _______
12. Tangible assets
Freehold property Plant and machinery Fixtures, fittings and equipment Motor vehicles Total
£ £ £ £ £
Cost
At 1 June 2022 586,691 1,855,570 51,198 768,968 3,262,427
Additions - 126,837 - - 126,837
_______ _______ _______ _______ _______
At 31 May 2023 586,691 1,982,407 51,198 768,968 3,389,264
_______ _______ _______ _______ _______
Depreciation
At 1 June 2022 513,192 1,542,766 49,889 687,796 2,793,643
Charge for the year 23,468 64,728 1,309 49,293 138,798
_______ _______ _______ _______ _______
At 31 May 2023 536,660 1,607,494 51,198 737,089 2,932,441
_______ _______ _______ _______ _______
Carrying amount
At 31 May 2023 50,031 374,913 - 31,879 456,823
_______ _______ _______ _______ _______
At 31 May 2022 73,499 312,804 1,309 81,172 468,784
_______ _______ _______ _______ _______
13. Investments
Other investments other than loans Total
£ £
Cost
At 1 June 2022 495,000 495,000
Other movements 20,255 20,255
_______ _______
At 31 May 2023 515,255 515,255
_______ _______
Impairment
At 1 June 2022 and 31 May 2023 - -
_______ _______
Carrying amount
At 31 May 2023 515,255 515,255
_______ _______
At 31 May 2022 495,000 495,000
_______ _______
14. Stocks
2023 2022
£ £
Finished goods 309,950 788,072
_______ _______
15. Debtors
2023 2022
£ £
Trade debtors 7,812,262 7,086,119
Prepayments and accrued income 65,696 61,876
Other debtors 77,143 -
_______ _______
7,955,101 7,147,995
_______ _______
16. Creditors: amounts falling due within one year
2023 2022
£ £
Trade creditors 982,218 581,726
Accruals and deferred income 68,915 27,094
Corporation tax 233,705 323,990
Social security and other taxes 4,369 12,328
Director loan accounts 221 221
_______ _______
1,289,428 945,359
_______ _______
17. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £ 6,633 (2022: £ 254,884 ).
18. Called up share capital
Issued, called up and fully paid
2023 2022
No £ No £
Ordinary shares shares of £ 1.00 each 100,000 100,000 100,000 100,000
_______ _______ _______ _______
19. Reserves
Profit and loss account:This reserve records retained earnings and accumulated losses.
20. Analysis of changes in net debt
At 1 June 2022 Cash flows At 31 May 2023
£ £ £
Cash and cash equivalents 6,003,709 993,097 6,996,806
Debt due within one year (221) - (221)
_______ _______ _______
6,003,488 993,097 6,996,585
_______ _______ _______
21. Directors advances, credits and guarantees
Balance brought forward and o/standing Balance brought forward and o/standing
2023 2022
£ £
Mr Graham Booth 221 221
_______ _______