Company Registration No. SC453454 (Scotland)
TOOLDEN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
TOOLDEN LIMITED
COMPANY INFORMATION
Directors
Mr J Child
Mr A Sellers
Company number
SC453454
Registered office
1 Esslemont Estate
Ellon
United Kingdom
AB41 8NW
Auditor
Johnston Carmichael LLP
Bishop's Court
29 Albyn Place
Aberdeen
AB10 1YL
TOOLDEN LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Statement of income and retained earnings
10
Balance sheet
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
TOOLDEN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 1 -

The directors present the strategic report for the year ended 31 July 2023.

Fair review of the business

The company has experienced another successful year of trading. Significant profits continue to be generated despite the tough economic climate, reflective of the strong market position the company holds. The company continues to refine and diversify its product range to enable it to thrive in a competitive market.

 

The principal activity of the company during the financial year was that of the supply of power tools, hand tools and accessories to both trade and domestic customers. The company predominantly sells these products through its own website, as well as eBay and its growing technical sales channels.

Principal risks and uncertainties

The principal risk to the company is an increase in competition in the industry of the supply of power tools and building materials to the building and DIY trade as well as any disruptions to the supply chain. The reputation of the company has grown over many years of trading and the company is considered to be in a strong market position to deal with the increasing competition.

 

The company also manages liquidity risk by maintaining adequate banking facilities and by continually monitoring forecast and actual cash flow. Good relationships are maintained with suppliers and credit agencies to ensure adequate credit limits are secured.

Development and performance

To maintain its current market position within the industry, the company is continuing to strengthen its online sales offering in both the UK and Europe, following a period of significant growth in online sales.

Company's Business outlook at the end of the financial year

The directors are very pleased with the performance of the company during FY23, which shows an uplift in turnover from £28.2m to £33.1m. The company achieved a consistent gross margin during FY23 at 21.2% (2022 - 21.7%), which has been maintained in the 2024 financial period.

 

During FY23, the business was impacted by increased administrative expenses, principally marketing and related costs and has since reorganised the company’s activities in this area, which has had a positive impact on the trading position in the current financial year (FY24). The directors are satisfied with the overall profit before tax of £404k and are very encouraged by current trading and prospects for the company.

 

The company's balance sheet has seen an uplift in current assets and current liabilities, reflective of the increase in activity levels, and a cautious decision to uplift stock volumes in certain areas. The directors continue to reinvest profits in the company and are pleased to see an uplift in trading profit and cash in the current financial year (FY24).

Analysis based on key performance indicators

Turnover growth – strong trading has continued during FY23, particularly across the company’s online channels.

 

Gross profit margin - the company seeks to obtain early settlement discounts and rebates as part of their buying strategy in order to maintain margins.

 

The company’s cash balance remains strong and there are good levels of liquidity forecast for the rest of the financial year. Other KPI’s, which are monitored by the directors include: stock levels, website conversion & Trustpilot score.

 

TOOLDEN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 2 -

On behalf of the board

Mr A Sellers
Director
22 April 2024
TOOLDEN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 July 2023.

Principal activities

The principal activity of the company continued to be that of the supply of power tools, hand tools and accessories to both trade and domestic customers.

 

Review of the business and going concern

 

The directors are very pleased with the performance of the company during FY23, which shows an uplift in turnover of £4.9m to £33.1m (2022 - £28.1m). The company achieved a consistent gross margin during FY23 at 21.2% (2022 - 21.7%), which has been maintained in FY24.

 

During FY23, the business was impacted by increased administrative expenses, principally marketing and related costs and has since reorganised the company’s activities in this area, which has had a positive impact on the trading position in the current financial year (FY24).

 

The directors are satisfied with the overall profit after tax of £404k (FY22 - £549k) and are very encouraged by current trading and future prospects for the company.

 

The company's balance sheet has seen an uplift in current assets and current liabilities, reflective of the increase in activity levels, and a cautious decision to uplift stock volumes in certain areas. The directors continue to reinvest profits in the company and are pleased to see a significant uplift in trading profit and cash in the current financial year (FY24).

 

The company is funded by cash resources and a working capital facility from the bank, which provides the necessary liquidity to enable the business to satisfy customer demand and increased activity levels.

 

In making their going concern assessment, the directors have considered the company’s forecast trading position and working capital requirements for the next 12 months from approval of these financial statements and are satisfied that the company will have adequate resources to continue in operational existence for the foreseeable future.

 

On this basis, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Results and dividends

The results for the year are presented on page 10 and the company’s balance sheet on page 11.

Ordinary dividends were paid amounting to £110,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr J Child
Mr A Sellers
Auditor

Johnston Carmichael LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

TOOLDEN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 4 -
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.

On behalf of the board
Mr A Sellers
Director
22 April 2024
TOOLDEN LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JULY 2023
- 5 -

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:

 

 

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.

TOOLDEN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TOOLDEN LIMITED
- 6 -
Opinion

We have audited the financial statements of Toolden Limited (‘the company’) for the year ended 31 July 2023, which comprise the Statement of Income and Retained Earnings, Balance Sheet, Statement of Cash Flows, 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 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 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.

TOOLDEN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TOOLDEN LIMITED
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

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

 

Matters on which we are required to report by exception

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

 

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

 

Responsibilities of directors

As explained more fully in the Directors’ responsibilities statement set out on page 5, 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 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 for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit is 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, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

TOOLDEN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TOOLDEN LIMITED
- 8 -

Extent to which the audit is considered capable of detecting irregularities, including fraud (continued)

We obtained an understanding of the legal and regulatory frameworks that are applicable to to the company and the sector in which it operates, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

 

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of submitted returns.

We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:

 

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

TOOLDEN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TOOLDEN LIMITED
- 9 -

Use of our report

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

Jenny Junnier (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
22 April 2024
Chartered Accountants
Statutory Auditor
Bishop's Court
29 Albyn Place
Aberdeen
AB10 1YL
TOOLDEN LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JULY 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
33,094,740
28,179,535
Cost of sales
(26,072,620)
(22,053,485)
Gross profit
7,022,120
6,126,050
Administrative expenses
(6,605,110)
(5,419,402)
Operating profit
4
417,010
706,648
Interest payable and similar expenses
7
(13,382)
(9,790)
Profit before taxation
403,628
696,858
Tax on profit
8
(97,810)
(147,679)
Profit for the financial year
305,818
549,179
Retained earnings brought forward
2,199,723
1,731,694
Dividends
9
(110,000)
(81,150)
Retained earnings carried forward
2,395,541
2,199,723

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

TOOLDEN LIMITED
BALANCE SHEET
AS AT 31 JULY 2023
31 July 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
106,905
128,277
Tangible assets
11
90,016
77,354
196,921
205,631
Current assets
Stocks
12
3,873,391
3,170,458
Debtors
13
2,247,649
1,854,301
Cash at bank and in hand
57,742
119,331
6,178,782
5,144,090
Creditors: amounts falling due within one year
14
(3,820,444)
(2,913,473)
Net current assets
2,358,338
2,230,617
Total assets less current liabilities
2,555,259
2,436,248
Creditors: amounts falling due after more than one year
15
(146,667)
(226,667)
Provisions for liabilities
Deferred tax liability
17
13,049
9,856
(13,049)
(9,856)
Net assets
2,395,543
2,199,725
Capital and reserves
Called up share capital
19
2
2
Profit and loss reserves
20
2,395,541
2,199,723
Total equity
2,395,543
2,199,725
The financial statements were approved by the board of directors and authorised for issue on 22 April 2024 and are signed on its behalf by:
Mr A Sellers
Director
Company Registration No. SC453454
TOOLDEN LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
311,215
480,256
Interest paid
(13,382)
(9,790)
Income taxes paid
(137,871)
(296,222)
Net cash inflow from operating activities
159,962
174,244
Investing activities
Purchase of tangible fixed assets
(31,551)
(23,540)
Proceeds on disposal of tangible fixed assets
-
0
2,333
Net cash used in investing activities
(31,551)
(21,207)
Financing activities
Repayment of bank loans
(80,000)
(81,698)
Dividends paid
(110,000)
(81,150)
Net cash used in financing activities
(190,000)
(162,848)
Net decrease in cash and cash equivalents
(61,589)
(9,811)
Cash and cash equivalents at beginning of year
119,331
129,142
Cash and cash equivalents at end of year
57,742
119,331
TOOLDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 13 -
1
Accounting policies
Company information

Toolden Limited is a private company limited by shares incorporated in Scotland. The registered office is 1 Esslemont Estate, Ellon, United Kingdom, AB41 8NW.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

The company has made a profit after tax for the year and subsequent to the year end, continues to perform well.true

 

In making their going concern assessment, the directors have considered the company’s forecast trading position and working capital requirements for the next 12 months and are satisfied that the company will have adequate resources to continue in operational existence for the foreseeable future.

 

On this basis, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
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.

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.

1.4
Intangible fixed assets - goodwill

Intangible assets are stated at cost, net of amortisation and any provision for impairment. Amortisation is provided on all intangible assets at rates to write off the cost or valuation of each asset over its expected useful life as follows:

Goodwill
10 years straight line

Goodwill arises on business combinations and represents any excess of consideration given over the fair value of the identifiable assets and liabilities acquired. Goodwill is initially recognised as an intangible asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

TOOLDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 14 -
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
10 years straight line
Plant and equipment
4 - 10 years straight line
Fixtures and fittings
4 years straight line
Computer equipment
4 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

 

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.

1.6
Impairment of fixed assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the statement of income and retained earnings as described below.

 

Non-financial assets

At each reporting end date, the company reviews the carrying amounts of its tangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the weighted average cost basis. 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.

 

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and bank finance. Bank finance is shown within the borrowings in creditors: amounts falling due within one year.

1.9
Financial instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument.

 

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.

 

Financial assets and liabilities are only offset in the balance sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

TOOLDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 15 -
Basic financial assets

Basic financial assets, which include debtors and bank balances, are measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, are recognised at transaction. Financial liabilities classified as payable within one year are not amortised.

 

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 at transaction price.

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.

1.10
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.

1.11
Taxation
Current tax

Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the balance sheet date.

Deferred tax

Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing difference reverse , based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

TOOLDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 16 -
1.12
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

The company operates a defined contribution scheme. The amount charged to the statement of income and retained earnings in respect of pension costs and other post retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the balance sheet.

1.14
Foreign exchange

Transactions in foreign currencies are currencies are recorded at the rates of exchange at the dates of the transaction. Monetary assets and liabilities that are denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.

 

Exchange differences are recognised in the statement of income and retained earnings in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the statement of comprehensive income.

1.15

Leases

Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) an dare depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the statement of income and retained earnings over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

 

Rentals under operating leases are charges on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are 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.

 

The directors consider that there are no judgements, estimates or underlying assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

TOOLDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 17 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
33,094,740
28,179,535
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
32,531,975
27,663,122
Ireland
562,765
516,413
33,094,740
28,179,535
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
-
0
4
Fees payable to the company's auditor for the audit of the company's financial statements
27,500
-
0
Depreciation of owned tangible fixed assets
18,889
21,516
Profit on disposal of tangible fixed assets
-
(2,333)
Amortisation of intangible assets
21,372
21,372
5
Employees

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

2023
2022
Number
Number
Monthly average number of persons employed by the Company during the year, including directors
46
47

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,977,408
1,920,924
Social security costs
11,283
10,461
Pension costs
62,260
55,324
2,050,951
1,986,709
TOOLDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 18 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
204,818
143,539
Company pension contributions to defined contribution schemes
25,760
11,232
230,578
154,771
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
96,541
n/a
Company pension contributions to defined contribution schemes
12,564
n/a
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank finance and loans
13,382
9,790
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
94,569
137,823
Adjustments in respect of prior periods
48
-
0
Total current tax
94,617
137,823
Deferred tax
Origination and reversal of timing differences
3,193
9,856
Total tax charge
97,810
147,679
TOOLDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
8
Taxation
(Continued)
- 19 -

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
403,628
696,858
Expected tax charge based on the average standard rate of corporation tax in the UK during the period of 20% (2022: 19%)
80,726
132,403
Tax effect of expenses that are not deductible in determining taxable profit
11,852
1,911
Adjustments in respect of prior years
48
-
0
Fixed asset differences
4,692
3,814
Remeasurement of deferred tax for changes in tax rates
492
96
Movement in deferred tax not recognised
-
0
9,455
Taxation charge for the year
97,810
147,679
9
Dividends
2023
2022
£
£
Final paid
110,000
81,150
10
Intangible fixed assets
Goodwill
£
Cost
At 1 August 2022 and 31 July 2023
213,770
Amortisation and impairment
At 1 August 2022
85,493
Amortisation charged for the year
21,372
At 31 July 2023
106,865
Carrying amount
At 31 July 2023
106,905
At 31 July 2022
128,277
TOOLDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 20 -
11
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computer equipment
Total
£
£
£
£
£
Cost
At 1 August 2022
119,433
90,552
24,904
28,280
263,169
Additions
-
0
30,170
-
0
1,381
31,551
At 31 July 2023
119,433
120,722
24,904
29,661
294,720
Depreciation and impairment
At 1 August 2022
59,202
85,943
14,864
25,806
185,815
Depreciation charged in the year
13,828
2,057
2,049
955
18,889
At 31 July 2023
73,030
88,000
16,913
26,761
204,704
Carrying amount
At 31 July 2023
46,403
32,722
7,991
2,900
90,016
At 31 July 2022
60,231
4,609
10,040
2,474
77,354
12
Stocks
2023
2022
£
£
Finished goods held for resale
3,873,391
3,170,458
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,018,681
888,038
Other debtors
1,228,968
966,263
2,247,649
1,854,301
TOOLDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 21 -
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
16
80,000
80,000
Trade creditors
2,185,870
1,931,550
Corporation tax
94,569
137,823
Other taxation and social security
258,987
152,947
Other creditors
1,201,018
611,153
3,820,444
2,913,473

Included within other creditors is a balance of £594,098 (2022: £486,995) with respect to the company's invoice discounting facility, which is secured over the related debtors.

15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans
16
146,667
226,667

 

16
Loans and overdrafts
2023
2022
£
£
Bank loans
226,667
306,667
Payable within one year
80,000
80,000
Payable after one year
146,667
226,667

The bank loan is secured by a bond, and a floating charge over all assets of the company. In addition, the bank loan is also partially secured by a government guarantee.

Interest on the above bank loan has been applied at 3.39% over base rate. This loan is repayable in 72 monthly instalments from the date the loan was drawn.

TOOLDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 22 -
17
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
13,049
9,856
2023
Movements in the year:
£
Liability at 1 August 2022
9,856
Charge to profit or loss
3,193
Liability at 31 July 2023
13,049

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
62,260
55,324

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.

19
Share capital
2023
2022
£
£
Ordinary share capital
2 Ordinary shares of £1 each
2
2
20
Profit and loss reserves

The profit and loss reserve represents cumulative realisable profits and losses less distributions.

TOOLDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 23 -
21
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
106,274
137,200
Between two and five years
184,166
280,841
290,440
418,041
22
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
-
72,000
23
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

2023
2022
£
£
Costs paid to a related party company during the year
85,000
81,000
TOOLDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 24 -
24
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
305,818
549,179
Adjustments for:
Taxation charged
97,810
147,679
Finance costs
13,382
9,790
Gain on disposal of tangible fixed assets
-
(2,333)
Amortisation and impairment of intangible assets
21,372
21,372
Depreciation and impairment of tangible fixed assets
18,889
21,516
Movements in working capital:
Increase in stocks
(702,933)
(434,480)
Increase in debtors
(393,348)
(310,590)
Increase in creditors
950,225
478,123
Cash generated from operations
311,215
480,256
25
Analysis of changes in net debt
1 August 2022
Cash flows
31 July 2023
£
£
£
Cash at bank and in hand
119,331
(61,589)
57,742
Bank loan
(306,667)
80,000
(226,667)
(187,336)
18,411
(168,925)
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