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COMPANY REGISTRATION NUMBER: 00830200
CONTINENTAL SPORTS LIMITED
FINANCIAL STATEMENTS
31 December 2023
CONTINENTAL SPORTS LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
Contents
Pages
Officers and professional advisers 1
Strategic report 2
Directors' report 3 to 4
Independent auditor's report to the members 5 to 8
Statement of comprehensive income 9
Statement of financial position 10
Statement of changes in equity 11
Statement of cash flows 12
Notes to the financial statements 13 to 22
CONTINENTAL SPORTS LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
The board of directors
M Booth
D J Booth
N Booth
Company secretary
M Booth
Registered office
Millgate
Paddock
Huddersfield
HD1 4SD
Auditor
Wheawill & Sudworth Limited
Chartered Accountants & statutory auditor
35 Westgate
Huddersfield
HD1 1PA
Bankers
HSBC Bank plc
2 Cloth Hall Street
Huddersfield
West Yorkshire
HD1 2ES
Solicitors
Eaton Smith LLP
14 High Street
Huddersfield
HD1 2HA
CONTINENTAL SPORTS LIMITED
STRATEGIC REPORT
YEAR ENDED 31 DECEMBER 2023
The directors present their report for the financial year ended 31 December 2023. Principal activity and business review The principal activity of the company during the year was manufacturing, installation, servicing and maintenance of sports, physical education and gymnastics equipment. New-build sports hall projects for schools, colleges and leisure centres along with gymnastic facilities for competition and high street operators form the backbone of the company's business. Alongside this, the company is involved in a wide range of other activities including physical education equipment, the fit-out of rebound therapy rooms, trampoline parks, cricket practice facilities, safety matting for industrial facilities and TV programmes including all the matting, padding and pugil sticks for the recent Gladiators relaunch on BBC1, and many other business lines. This broad range of activities helps to smooth the natural cycles in each individual market. The year ended 31 December 2023 was a significantly improved environment compared to recent years with prices and availability of raw materials stabilising and inflation reachinbg more sensible levels allowing us to be confident on pricing longer term projects. The company works on the design and costing stages of projects well in advance of their expected completion. In an era of stable and low inflation the sales team have been able to provide long dated sales quotations with pricing held firm until the project end. Whilst not contractually bound by those long dated quotations, the company strategically tried to honour as many such quotations as possible. Some price increases were possible when the quotations became unsustainable, but some projects were accepted on lower margins than initially planned to maintain ongoing trading relationships. The positive increase in turnover during 2023 coupled with the necessary focus on costs, efficiencies and strategic purchasing in recent years has paid dividends resulting in substantial improvements to gross and nett profit margins. The directors are pleased with the performance of the business and the financial outcome for the year. The company entered 2024 with some large and prestigious projects in the order book and an exciting pipeline in sports halls, gymnastics and cricket practice facilities, but the start to 2024 has been affected negatively by dramatic increases in various overhead costs - in particular general and buildings insurance, and utilities along with the significant recent increase in the National Minimum Wage and its impact on pay differentials. The company's attractive contracted gas and electricity rates expired in mid-2023 with the investment in solar panels helping to reduce the impact. The principal KPIs monitored by the company's Executive Committee include order intake, gross margin and cash collection.
Financial risk management objectives and policies Having assessed the company's financial risks, the directors concluded that no material use of financial instruments was necessary or appropriate during the year.
This report was approved by the board of directors on 18 July 2024 and signed on behalf of the board by:
N Booth
Director
CONTINENTAL SPORTS LIMITED
DIRECTORS' REPORT
YEAR ENDED 31 DECEMBER 2023
The directors present their report and the financial statements of the company for the year ended 31 December 2023 .
Directors
The directors who served the company during the year were as follows:
M Booth
D J Booth
N Booth
Dividends
A dividend of £ 25,000 has been paid on the preference share capital.
Research and development
The company incurred expenditure on research and development appropriate to its trading activities.
Strategic report
In accordance with Section 414C(11), Companies Act 2006, the following information required to be contained in this report is set out in the company's Strategic Report on page 2: principal activities, business review and financial risks.
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;
- 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.
This report was approved by the board of directors on 18 July 2024 and signed on behalf of the board by:
N Booth
Director
CONTINENTAL SPORTS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CONTINENTAL SPORTS LIMITED
YEAR ENDED 31 DECEMBER 2023
Opinion
We have audited the financial statements of Continental Sports Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, 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 December 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 have 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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of 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: Obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework; Assessment of the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur; Ensured whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations; Gained clear understanding of the entity’s current activities, the scope of its authorisation and confirmed the effectiveness of its control environment where the entity is a regulated entity; Because of inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with the law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 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 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.
David Butterworth
(Senior Statutory Auditor)
For and on behalf of
Wheawill & Sudworth Limited
Chartered Accountants & statutory auditor
35 Westgate
Huddersfield
HD1 1PA
18 July 2024
CONTINENTAL SPORTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
YEAR ENDED 31 DECEMBER 2023
2023
2022
Note
£
£
Turnover
4
8,090,508
7,376,243
Cost of sales
( 4,635,907)
( 4,981,648)
------------
------------
Gross profit
3,454,601
2,394,595
Administrative expenses
( 2,571,326)
( 2,157,132)
Other operating income
10,242
12,368
------------
------------
Operating profit
5
893,517
249,831
Gain on financial assets at fair value through profit or loss
18,751
Interest receivable and similar income
9
43,477
26,052
Interest payable and similar expenses
10
( 25,000)
( 25,174)
------------
------------
Profit before taxation
930,745
250,709
Tax on profit
11
( 229,929)
( 56,672)
------------
------------
Profit for the financial year and total comprehensive income
700,816
194,037
------------
------------
All the activities of the company are from continuing operations.
CONTINENTAL SPORTS LIMITED
STATEMENT OF FINANCIAL POSITION
31 December 2023
2023
2022
Note
£
£
Fixed assets
Intangible assets
13
3,724
6,682
Tangible assets
14
1,046,817
764,891
------------
------------
1,050,541
771,573
Current assets
Stocks
15
1,274,856
1,310,866
Debtors
16
1,253,257
952,984
Investments
17
518,365
Cash at bank and in hand
2,296,074
2,356,519
------------
------------
5,342,552
4,620,369
Creditors: amounts falling due within one year
18
( 1,825,752)
( 1,604,417)
------------
------------
Net current assets
3,516,800
3,015,952
------------
------------
Total assets less current liabilities
4,567,341
3,787,525
Provisions
Taxation including deferred tax
19
( 197,800)
( 118,800)
------------
------------
Net assets
4,369,541
3,668,725
------------
------------
Capital and reserves
Called up share capital
22
601
601
Capital redemption reserve
23
750,201
750,201
Profit and loss account
23
3,618,739
2,917,923
------------
------------
Shareholders funds
4,369,541
3,668,725
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 18 July 2024 , and are signed on behalf of the board by:
N Booth
Director
Company registration number: 00830200
CONTINENTAL SPORTS LIMITED
STATEMENT OF CHANGES IN EQUITY
YEAR ENDED 31 DECEMBER 2023
Called up share capital
Capital redemption reserve
Profit and loss account
Total
£
£
£
£
At 1 January 2022
601
750,201
3,223,886
3,974,688
Profit for the year
194,037
194,037
------------
------------
------------
------------
Total comprehensive income for the year
194,037
194,037
Dividends paid and payable
12
( 500,000)
( 500,000)
------------
------------
------------
------------
Total investments by and distributions to owners
( 500,000)
( 500,000)
At 31 December 2022
601
750,201
2,917,923
3,668,725
Profit for the year
700,816
700,816
------------
------------
------------
------------
Total comprehensive income for the year
700,816
700,816
------------
------------
------------
------------
At 31 December 2023
601
750,201
3,618,739
4,369,541
------------
------------
------------
------------
CONTINENTAL SPORTS LIMITED
STATEMENT OF CASH FLOWS
YEAR ENDED 31 DECEMBER 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
700,816
194,037
Adjustments for:
Depreciation of tangible assets
160,743
120,912
Amortisation of intangible assets
7,923
6,682
Gain on financial assets at fair value through profit or loss
(18,751)
Interest receivable and similar income
( 43,477)
( 26,052)
Interest payable and similar expenses
25,000
25,174
Gains on disposal of tangible assets
( 187)
Tax on profit
229,929
56,672
Changes in:
Stocks
36,010
( 87,338)
Trade and other debtors
( 300,273)
( 47,767)
Trade and other creditors
97,692
175,303
------------
------------
Cash generated from operations
895,425
417,623
Interest paid
( 25,000)
( 25,174)
Interest received
43,477
26,052
Tax paid
( 27,286)
( 60,677)
------------
------------
Net cash from operating activities
886,616
357,824
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 444,983)
( 251,577)
Proceeds from sale of tangible assets
2,501
Purchase of intangible assets
( 4,965)
Purchases of other investments
( 700,000)
Proceeds from sale of other investments
200,386
------------
------------
Net cash used in investing activities
( 947,061)
( 251,577)
------------
------------
Cash flows from financing activities
Dividends paid
( 500,000)
------------
------------
Net cash used in financing activities
( 500,000)
------------
------------
Net decrease in cash and cash equivalents
( 60,445)
( 393,753)
Cash and cash equivalents at beginning of year
2,356,519
2,750,272
------------
------------
Cash and cash equivalents at end of year
2,296,074
2,356,519
------------
------------
CONTINENTAL SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
1. General information
Continental Sports Limited is a private company limited by shares, registered in England, registration number00830200. The address of the registered office is given in the company information on page 1 of these financial statements.
2. Statement of compliance
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
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 measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.
Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
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 profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, 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.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Website
-
20% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and 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.
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:
Land and buildings
-
2% straight line
Plant and machinery
-
25% reducing balance
Computer equipment
-
25% straight line
Motor vehicles
-
25% reducing balance
Office equipment
-
15% reducing balance
Impairment of fixed assets
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. For the purposes of impairment testing, 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 largely independent of the cash inflows from other assets or groups of assets.
Investments
Investments that are listed on the stock exchange are valued at market value.
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 stock to its present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
The company operates defined contribution pension schemes for employees and directors. The cost of company contributions to the schemes are charged to the profit and loss account as incurred.
4. Turnover
Turnover arises from:
2023
2022
£
£
Sale of goods
8,090,508
7,376,243
------------
------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2023
2022
£
£
United Kingdom
7,097,615
7,104,427
Overseas
992,893
271,816
------------
------------
8,090,508
7,376,243
------------
------------
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Amortisation of intangible assets
7,923
6,682
Depreciation of tangible assets
160,743
120,912
Gains on disposal of tangible assets
( 187)
Impairment of trade debtors
5,844
7,549
------------
------------
6. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
10,000
6,000
------------
------------
Fees payable to the company's auditor for other services:
Other non-audit services
8,000
5,500
------------
------------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Selling and administrative
26
25
Manufacturing
56
52
------------
------------
82
77
------------
------------
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
2,611,889
2,389,765
Social security costs
259,380
249,157
Other pension costs
167,088
65,035
------------
------------
3,038,357
2,703,957
------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
344,383
235,193
------------
------------
Remuneration of the highest paid director in respect of qualifying services:
2023
2022
£
£
Aggregate remuneration
332,383
223,193
------------
------------
9. Interest receivable and similar income
2023
2022
£
£
Interest on cash and cash equivalents
42,151
9,384
Other interest receivable and similar income
1,326
16,668
------------
------------
43,477
26,052
------------
------------
10. Interest payable and similar expenses
2023
2022
£
£
Dividends paid on shares classed as debt
25,000
25,000
Other interest payable and similar charges
174
------------
------------
25,000
25,174
------------
------------
11. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
151,415
27,772
Adjustments in respect of prior periods
( 486)
------------
------------
Total current tax
150,929
27,772
------------
------------
Deferred tax:
Origination and reversal of timing differences
79,000
28,900
------------
------------
Tax on profit
229,929
56,672
------------
------------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: higher than) the standard rate of corporation tax in the UK of 23.52 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
930,745
250,709
------------
------------
Profit on ordinary activities by rate of tax
218,911
47,635
Effect of expenses not deductible for tax purposes
6,512
4,750
Rounding on tax charge
( 199)
Effect of capital allowances
( 1,346)
( 3,838)
Ineligible depreciation
1,391
1,124
Effect of increased rate of deferred tax
4,660
7,001
------------
------------
Tax on profit
229,929
56,672
------------
------------
12. Dividends
Equity dividends
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
500,000
------------
------------
13. Intangible assets
Website
£
Cost
At 1 January 2023
33,409
Additions
4,965
------------
At 31 December 2023
38,374
------------
Amortisation
At 1 January 2023
26,727
Charge for the year
7,923
------------
At 31 December 2023
34,650
------------
Carrying amount
At 31 December 2023
3,724
------------
At 31 December 2022
6,682
------------
14. Tangible assets
Land and buildings
Plant and machinery
Computer equipment
Motor vehicles
Office equipment
Total
£
£
£
£
£
£
Cost
At 1 Jan 2023
844,294
952,030
68,669
633,775
171,658
2,670,426
Additions
234,542
66,670
133,086
10,685
444,983
Disposals
( 23,107)
( 23,107)
------------
------------
------------
------------
------------
------------
At 31 Dec 2023
1,078,836
1,018,700
68,669
743,754
182,343
3,092,302
------------
------------
------------
------------
------------
------------
Depreciation
At 1 Jan 2023
395,874
858,780
68,669
433,280
148,932
1,905,535
Charge for the year
32,877
40,097
82,828
4,941
160,743
Disposals
( 20,793)
( 20,793)
------------
------------
------------
------------
------------
------------
At 31 Dec 2023
428,751
898,877
68,669
495,315
153,873
2,045,485
------------
------------
------------
------------
------------
------------
Carrying amount
At 31 Dec 2023
650,085
119,823
248,439
28,470
1,046,817
------------
------------
------------
------------
------------
------------
At 31 Dec 2022
448,420
93,250
200,495
22,726
764,891
------------
------------
------------
------------
------------
------------
The net book value of land and buildings consists of freehold and long leasehold land and buildings of £257,200 (2022: £266,330) and £392,885 (2022: £182,089) respectively.
15. Stocks
2023
2022
£
£
Raw materials
777,613
836,029
Work in progress
105,197
103,509
Finished goods
392,046
371,328
------------
------------
1,274,856
1,310,866
------------
------------
16. Debtors
2023
2022
£
£
Trade debtors
1,120,453
788,983
Prepayments and accrued income
37,967
32,679
Directors' loan accounts (note 26)
88,901
33,398
Other debtors
5,936
97,924
------------
------------
1,253,257
952,984
------------
------------
17. Investments
2023
2022
£
£
Other investments
518,365
------------
------------
Investments are listed on the Stock Exchange and are valued at market value.
18. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
652,673
682,035
Accruals and deferred income
279,499
44,185
Corporation tax
151,415
27,772
Social security and other taxes
156,826
258,266
Shares classed as financial liabilities
500,000
500,000
Other creditors
85,339
92,159
------------
------------
1,825,752
1,604,417
------------
------------
19. Provisions
Deferred tax (note 20)
£
At 1 January 2023
118,800
Additions
79,000
------------
At 31 December 2023
197,800
------------
20. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 19)
197,800
118,800
------------
------------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
196,029
119,900
Fair value adjustment of financial assets
1,771
Other timing differences
( 1,100)
------------
------------
197,800
118,800
------------
------------
21. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution pension plans was £ 67,088 (2022: £ 65,035 ).
22. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Amounts presented in equity:
Ordinary 'A' shares of £ 1 each
448
448
448
448
Ordinary 'B' shares of £ 1 each
147
147
147
147
Ordinary 'C' shares of £ 1 each
1
1
1
1
Ordinary 'D' shares of £ 1 each
1
1
1
1
Ordinary 'E' shares of £1 each
1
1
1
1
Ordinary 'F' shares of £1 each
1
1
1
1
Ordinary 'G' shares of £1 each
1
1
1
1
Ordinary 'H' shares of £1 each
1
1
1
1
------------
------------
------------
------------
601
601
601
601
------------
------------
------------
------------
Amounts presented in liabilities:
Preference shares of £ 1 each
500,000
500,000
500,000
500,000
------------
------------
------------
------------
The various classes of share rank pari passu in all respects. The 500,000 £1 Non Cumulative Redeemable Preference shares have attached to them a right to a fixed dividend of 5% per annum and do not have any voting rights.
23. Reserves
Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. Profit and loss account - This reserve records retained earnings and accumulated losses.
24. Analysis of changes in net debt
At 1 Jan 2023
Cash flows
At 31 Dec 2023
£
£
£
Cash at bank and in hand
2,356,519
(60,445)
2,296,074
Current asset investments
518,365
518,365
------------
------------
------------
2,356,519
457,920
2,814,439
------------
------------
------------
25. Capital commitments
Capital expenditure contracted for but not provided for in the financial statements is as follows:
2023
2022
£
£
Tangible assets
254,000
204,000
------------
------------
26. Directors' advances, credits and guarantees
Included in debtors is a loan to a director, amounting to £88,901 (2022: £33,398). £ Amount outstanding at end of the year 88,901 Amount outstanding at beginning of the year 33,398 Maximum outstanding during the year 88,901 The loan will be repaid in full within nine months of the balance sheet date. Interest has been charged on the loan at a commercial rate of interest.
27. Controlling party
Voting control of the company is held by N Booth .