REGISTERED NUMBER: 02386158 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Audited Consolidated Financial Statements for the Year Ended 31 October 2023 |
for |
Weldon Group Limited |
REGISTERED NUMBER: 02386158 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Audited Consolidated Financial Statements for the Year Ended 31 October 2023 |
for |
Weldon Group Limited |
Weldon Group Limited (Registered number: 02386158) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 October 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
Weldon Group Limited |
Company Information |
for the Year Ended 31 October 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants |
Statutory Auditors |
The Old Doctor's House |
74 Grange Road |
Dudley |
West Midlands |
DY1 2AW |
Weldon Group Limited (Registered number: 02386158) |
Group Strategic Report |
for the Year Ended 31 October 2023 |
The directors present their strategic report of the company and the group for the year ended 31 October 2023. |
REVIEW OF BUSINESS |
The group operates in the construction industry, providing mechanical and electrical engineers and industrial building fit outs. |
Results and Performance |
The results of the Group are set out on page 9 and show profit on ordinary activities before tax for the year of £3,453,471 compared to £1,449,533 in 2022; shareholders' funds at the year end were £7,421,802 (2022 - £4,832,873). |
This year's group turnover is £21,784,904 which is up from £16,985,409 in 2022, showing a significant increase in revenue. |
Key Performance Indicators |
The board do not measure the performance of the company/ group by reference to KPI's. However gross profit is measure and monitored and can be seen to show a good increase during 2023. The company suffered in previous years due to the rise in cost of raw materials, which has now been built into new contract pricing. |
The group has seen a change in it's Gross Profit Margin % from 16.77% to 21.62%. |
PRINCIPAL RISKS AND UNCERTAINTIES |
As a group, the process of risk is controlled in all areas by the Board of Directors, through management of key areas covering Health and Safety Law, Employment Law and Company Law. This is done through the application of policies and procedures agreed at Board level. |
Our industry is highly competitive with materials and labour forming the largest % of the cost base; any fluctuation in material costs and the price of labour have an impact on the profitability of the business. |
ON BEHALF OF THE BOARD: |
Weldon Group Limited (Registered number: 02386158) |
Report of the Directors |
for the Year Ended 31 October 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 October 2023. |
DIVIDENDS |
An interim dividend of £0.82 per share on the Ordinary £1 shares was paid on 31 October 2023. The directors recommend that no final dividend be paid on these shares. |
No interim dividend was paid on the A Ordinary £1 shares. The directors recommend that no final dividend be paid on these shares. |
The total distribution of dividends for the year ended 31 October 2023 will be £ 81,998 . |
FUTURE DEVELOPMENTS |
The group is going to continue with the same group structure and trade. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Weldon Group Limited (Registered number: 02386158) |
Report of the Directors |
for the Year Ended 31 October 2023 |
AUDITORS |
The auditors, Lewis Smith & Co., will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Weldon Group Limited |
Opinion |
We have audited the financial statements of Weldon Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 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: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 October 2023 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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. |
Other matter |
This is the first year that the company has been required to have an audit performed on its financial statements. Therefore, comparative information in this years financial statements is derived from the company's financial statements of the previous year, which were not audited. |
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 group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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 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. |
Report of the Independent Auditors to the Members of |
Weldon Group Limited |
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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 Statement of Directors' Responsibilities set out on page three, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Weldon Group Limited |
Auditors' 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 a Report of the Auditors 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. |
As part of an audit in accordance with ISAs (UK), we exercise professional judgement 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 company's 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. |
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion. |
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. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Weldon Group Limited |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Certified Accountants |
Statutory Auditors |
The Old Doctor's House |
74 Grange Road |
Dudley |
West Midlands |
DY1 2AW |
Weldon Group Limited (Registered number: 02386158) |
Consolidated Income Statement |
for the Year Ended 31 October 2023 |
31.10.23 | 31.10.22 |
as restated |
Notes | £ | £ |
TURNOVER | 3 | 21,784,904 | 16,985,409 |
Cost of sales | 16,879,573 | 14,168,503 |
GROSS PROFIT | 4,905,331 | 2,816,906 |
Administrative expenses | 1,478,220 | 1,374,164 |
3,427,111 | 1,442,742 |
Other operating income | 6,300 | 5,692 |
OPERATING PROFIT | 5 | 3,433,411 | 1,448,434 |
Interest receivable and similar income | 20,413 | 1,099 |
3,453,824 | 1,449,533 |
Interest payable and similar expenses | 6 | 353 | - |
PROFIT BEFORE TAXATION | 3,453,471 | 1,449,533 |
Tax on profit | 7 | 782,544 | 271,202 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 2,670,927 | 1,178,331 |
Weldon Group Limited (Registered number: 02386158) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 October 2023 |
31.10.23 | 31.10.22 |
as restated |
Notes | £ | £ |
PROFIT FOR THE YEAR | 2,670,927 | 1,178,331 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2,670,927 |
1,178,331 |
Total comprehensive income attributable to: |
Owners of the parent | 2,670,927 | 1,178,331 |
Weldon Group Limited (Registered number: 02386158) |
Consolidated Balance Sheet |
31 October 2023 |
31.10.23 | 31.10.22 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 | 191,726 | 61,734 |
Investments | 12 | 200 | 200 |
Investment property | 13 | 105,000 | 105,000 |
296,926 | 166,934 |
CURRENT ASSETS |
Stocks | 14 | 470,007 | 340,557 |
Debtors | 15 | 4,870,736 | 4,031,494 |
Cash at bank | 5,422,216 | 3,701,995 |
10,762,959 | 8,074,046 |
CREDITORS |
Amounts falling due within one year | 16 | 3,597,159 | 3,402,914 |
NET CURRENT ASSETS | 7,165,800 | 4,671,132 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
7,462,726 |
4,838,066 |
PROVISIONS FOR LIABILITIES | 19 | 40,924 | 5,193 |
NET ASSETS | 7,421,802 | 4,832,873 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 100,000 | 100,000 |
Other reserves | 21 | 401,257 | 401,257 |
Retained earnings | 21 | 6,920,545 | 4,331,616 |
SHAREHOLDERS' FUNDS | 7,421,802 | 4,832,873 |
The financial statements were approved by the Board of Directors and authorised for issue on 29 July 2024 and were signed on its behalf by: |
Mr D J Weldon - Director |
Weldon Group Limited (Registered number: 02386158) |
Company Balance Sheet |
31 October 2023 |
31.10.23 | 31.10.22 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
Investments | 12 |
Investment property | 13 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 19 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 2,664,757 | 1,173,403 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Weldon Group Limited (Registered number: 02386158) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 October 2023 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 November 2021 | 100,000 | 3,302,785 | 401,257 | 3,804,042 |
Changes in equity |
Dividends | - | (149,500 | ) | - | (149,500 | ) |
Total comprehensive income | - | 1,178,331 | - | 1,178,331 |
Balance at 31 October 2022 | 100,000 | 4,331,616 | 401,257 | 4,832,873 |
Changes in equity |
Dividends | - | (81,998 | ) | - | (81,998 | ) |
Total comprehensive income | - | 2,670,927 | - | 2,670,927 |
Balance at 31 October 2023 | 100,000 | 6,920,545 | 401,257 | 7,421,802 |
Weldon Group Limited (Registered number: 02386158) |
Company Statement of Changes in Equity |
for the Year Ended 31 October 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 November 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 October 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 October 2023 |
Weldon Group Limited (Registered number: 02386158) |
Consolidated Cash Flow Statement |
for the Year Ended 31 October 2023 |
31.10.23 | 31.10.22 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,545,085 | 1,762,786 |
Interest paid | (353 | ) | - |
Tax paid | (273,522 | ) | (186,363 | ) |
Net cash from operating activities | 2,271,210 | 1,576,423 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (171,350 | ) | (4,328 | ) |
Sale of tangible fixed assets | 4,998 | 38,087 |
Sale of investment property | - | 145,000 |
Interest received | 20,413 | 1,099 |
Net cash from investing activities | (145,939 | ) | 179,858 |
Cash flows from financing activities |
Amount introduced by directors | 563,076 | 146,899 |
Amount withdrawn by directors | (886,128 | ) | (748,138 | ) |
Equity dividends paid | (81,998 | ) | (149,500 | ) |
Net cash from financing activities | (405,050 | ) | (750,739 | ) |
Increase in cash and cash equivalents | 1,720,221 | 1,005,542 |
Cash and cash equivalents at beginning of year |
2 |
3,701,995 |
2,696,453 |
Cash and cash equivalents at end of year | 2 | 5,422,216 | 3,701,995 |
Weldon Group Limited (Registered number: 02386158) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 October 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Profit before taxation | 3,453,471 | 1,449,533 |
Depreciation charges | 36,411 | 14,519 |
Profit on disposal of fixed assets | (51 | ) | (24,992 | ) |
Finance costs | 353 | - |
Finance income | (20,413 | ) | (1,099 | ) |
3,469,771 | 1,437,961 |
(Increase)/decrease in stocks | (129,450 | ) | 431,765 |
Increase in trade and other debtors | (283,198 | ) | (1,327,938 | ) |
(Decrease)/increase in trade and other creditors | (512,038 | ) | 1,220,998 |
Cash generated from operations | 2,545,085 | 1,762,786 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 October 2023 |
31.10.23 | 1.11.22 |
£ | £ |
Cash and cash equivalents | 5,422,216 | 3,701,995 |
Year ended 31 October 2022 |
31.10.22 | 1.11.21 |
as restated |
£ | £ |
Cash and cash equivalents | 3,701,995 | 2,696,453 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.11.22 | Cash flow | At 31.10.23 |
£ | £ | £ |
Net cash |
Cash at bank | 3,701,995 | 1,720,221 | 5,422,216 |
3,701,995 | 1,720,221 | 5,422,216 |
Total | 3,701,995 | 1,720,221 | 5,422,216 |
Weldon Group Limited (Registered number: 02386158) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 October 2023 |
1. | STATUTORY INFORMATION |
Weldon Group Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on a going concern basis. |
The functional currency in which the accounts were prepared in, is £ Sterling, rounded to the nearest £1. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue is recognised on construction contracts by reference to the services performed to date. Where the outcome of a contract can be estimated reliably, revenue and costs are recognised by reference to the state of completion of the contract at the balance sheet date (determined by surveys of work performed by quantity surveyors in conjunction with clients). |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Investments in subsidiaries |
Investment in subsidiary undertakings are recognised at cost less an impairment provision. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Work in progress is valued at the lower of cost and net relisable value, where the risk and rewards havent been transferred to the customer, in line with the long term contracts. |
Financial instruments |
Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss. |
Weldon Group Limited (Registered number: 02386158) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Long-term contracts |
Amounts recoverable on long term contracts, which are included in debtors are stated at the net sales value of the work done after provisions for contingencies and anticipated future losses, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments received on account. |
Provision for warranty costs |
Where there are future costs, which will be incurred after the completion of a project, known as rectification costs, a provision is made to included these costs in line with long term contracts. The value of these costs is determined based on known future costs incurred after the year end date and any expected future costs determined by the Directors. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Rendering of Services | 21,784,904 | 16,985,409 |
21,784,904 | 16,985,409 |
Weldon Group Limited (Registered number: 02386158) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
3. | TURNOVER - continued |
Revenue is recognised on construction contracts by reference to the services performed to date. Where the outcome of a contract can be estimated reliably, revenue and costs are recognised by reference to the state of completion of the contract at the balance sheet date (determined by surveys of work performed by quantity surveyors in conjunction with clients). |
4. | EMPLOYEES AND DIRECTORS |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Wages and salaries | 1,284,119 | 1,311,910 |
Social security costs | 122,426 | 136,831 |
Other pension costs | 153,251 | 91,081 |
1,559,796 | 1,539,822 |
The average number of employees during the year was as follows: |
31.10.23 | 31.10.22 |
as restated |
Directors | 4 | 4 |
Direct | 18 | 19 |
Admin | 15 | 15 |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Directors' remuneration | 124,107 | 125,301 |
Directors' pension contributions to money purchase schemes | 67,255 | 36,887 |
The number of directors for whom pension benefits are accruing under money purchase pension schemes across the group is 4 (2022 - 4). |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Hire of plant and machinery | 195,986 | 94,212 |
Other operating leases | 26,483 | 16,033 |
Depreciation - owned assets | 36,411 | 14,518 |
Profit on disposal of fixed assets | (51 | ) | (24,992 | ) |
Auditors' remuneration | 24,750 | - |
Weldon Group Limited (Registered number: 02386158) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Interest on late tax payments | 353 | - |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Current tax: |
UK corporation tax | 746,813 | 273,494 |
Deferred tax | 35,731 | (2,292 | ) |
Tax on profit | 782,544 | 271,202 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Profit before tax | 3,453,471 | 1,449,533 |
Profit multiplied by the standard rate of corporation tax in the UK of 21.112 % (2022 - 19 %) |
729,097 |
275,411 |
Effects of: |
Expenses not deductible for tax purposes | 1,583 | 2,149 |
Income not taxable for tax purposes | 50,887 | (6,905 | ) |
Capital allowances in excess of depreciation | (27,216 | ) | - |
Depreciation in excess of capital allowances | - | 2,839 |
Utilisation of tax losses | (7,538 | ) | - |
Deferred Tax Movement | 35,731 | (2,292 | ) |
Total tax charge | 782,544 | 271,202 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
Weldon Group Limited (Registered number: 02386158) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
9. | DIVIDENDS |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Ordinary shares of £1 each |
Interim dividend | 81,998 | 139,000 |
A Ordinary shares of £1 each |
Interim dividend | - | 10,500 |
81,998 | 149,500 |
10. | PRIOR YEAR ADJUSTMENT |
The 2022 financial statements have been adjusted to reflect the missclarification of contract work in progress and sales. Whilst there was no effect on the years gross or net profit, the following restatement journals have been included in the comparative figures for 2022 |
Dr Closing Work in progress (Profit/ Loss) | £81,316 |
Cr Working in Progress (Balance Sheet) | £81,316 |
Dr Accrued Income (Balance Sheet) | £81,316 |
Cr Sales Income (Profit/ Loss) | £81,316 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 November 2022 | 7,107 | 5,405 | 154,429 | 7,932 | 174,873 |
Additions | - | - | 171,350 | - | 171,350 |
Disposals | - | - | (15,098 | ) | - | (15,098 | ) |
At 31 October 2023 | 7,107 | 5,405 | 310,681 | 7,932 | 331,125 |
DEPRECIATION |
At 1 November 2022 | 3,512 | 3,404 | 102,479 | 3,744 | 113,139 |
Charge for year | 539 | 300 | 34,525 | 1,047 | 36,411 |
Eliminated on disposal | - | - | (10,151 | ) | - | (10,151 | ) |
At 31 October 2023 | 4,051 | 3,704 | 126,853 | 4,791 | 139,399 |
NET BOOK VALUE |
At 31 October 2023 | 3,056 | 1,701 | 183,828 | 3,141 | 191,726 |
At 31 October 2022 | 3,595 | 2,001 | 51,950 | 4,188 | 61,734 |
Weldon Group Limited (Registered number: 02386158) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 November 2022 |
Additions |
At 31 October 2023 |
DEPRECIATION |
At 1 November 2022 |
Charge for year |
At 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
12. | FIXED ASSET INVESTMENTS |
Group |
Shares in |
group |
undertakings |
£ |
COST |
At 1 November 2022 |
and 31 October 2023 | 200 |
NET BOOK VALUE |
At 31 October 2023 | 200 |
At 31 October 2022 | 200 |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 November 2022 |
and 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
Weldon Group Limited (Registered number: 02386158) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Great Western House Martindale, Hawks Green, Cannock, Staffordshire, WS11 7XN |
Nature of business: |
% |
Class of shares: | holding |
31.10.23 | 31.10.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Great Western House Martindale, Hawks Green, Cannock, Staffordshire, WS11 7XN |
Nature of business: |
% |
Class of shares: | holding |
31.10.23 | 31.10.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Great Western House Martindale, Hawks Green, Cannock, Staffordshire, WS11 7XN |
Nature of business: |
% |
Class of shares: | holding |
31.10.23 | 31.10.22 |
£ | £ |
Aggregate capital and reserves |
Registered office: Great Western House Martindale, Hawks Green, Cannock, Staffordshire, WS11 7XN |
Nature of business: |
% |
Class of shares: | holding |
31.10.23 | 31.10.22 |
£ | £ |
Aggregate capital and reserves |
Weldon Group Limited (Registered number: 02386158) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: Great Western House Martindale, Hawks Green, Cannock, Staffordshire, WS11 7XN |
Nature of business: |
% |
Class of shares: | holding |
31.10.23 | 31.10.22 |
£ | £ |
Aggregate capital and reserves |
Registered office: Great Western House Martingale, Hawks Green, Cannock, Staffordshire, WS11 7XN |
Nature of business: |
% |
Class of shares: | holding |
31.10.23 | 31.10.22 |
£ | £ |
Aggregate capital and reserves |
13. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 November 2022 |
and 31 October 2023 | 105,000 |
NET BOOK VALUE |
At 31 October 2023 | 105,000 |
At 31 October 2022 | 105,000 |
Fair value at 31 October 2023 is represented by: |
£ |
Cost | 105,000 |
The leasehold investment property was revalued by a professional valuer at Jayman Limited, 2 Bore Street, Lichfield, WS13 6LL on 1 March 2024. The investment property is held at market value on the open market, which is deemed to be fair value. |
Weldon Group Limited (Registered number: 02386158) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
14. | STOCKS |
Group |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Stocks | 1,600 | 1,000 |
Work-in-progress | 143,407 | 14,557 |
Undeveloped building land | 325,000 | 325,000 |
470,007 | 340,557 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.10.23 | 31.10.22 | 31.10.23 | 31.10.22 |
as restated | as restated |
£ | £ | £ | £ |
Trade debtors | 2,927,392 | 3,542,610 |
Amounts owed by group undertakings | 3,272 | 3,272 |
Other debtors | 24,417 | 21,218 |
Directors' current accounts | 665,433 | 329,208 | 665,435 | - |
Tax | 224,584 | 4,765 |
VAT | 53,651 | 7,519 |
Prepayments and accrued income | 971,987 | 122,902 |
4,870,736 | 4,031,494 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.10.23 | 31.10.22 | 31.10.23 | 31.10.22 |
as restated | as restated |
£ | £ | £ | £ |
Trade creditors | 2,103,913 | 2,882,136 |
Tax | 971,368 | 278,258 |
Social security and other taxes | 70,273 | 82,848 |
VAT | - | - | 1,883 | 11,925 |
Other creditors | 35,047 | 14,963 |
Directors' current accounts | 21,595 | 8,422 | 21,596 | 81,427 |
Accruals and deferred income | 394,963 | 136,287 |
3,597,159 | 3,402,914 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Weldon Group Limited (Registered number: 02386158) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
Group |
Non-cancellable operating | leases |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Within one year | 25,200 | 25,200 |
Between one and five years | 33,600 | 58,800 |
58,800 | 84,000 |
18. | SECURED DEBTS |
HSBC Bank PLC has a fixed charge over book debts and floating charge over all other assets of the subsidiary, E.H.Humphries (Norton) Limited. |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
31.10.23 | 31.10.22 | 31.10.23 | 31.10.22 |
as restated | as restated |
£ | £ | £ | £ |
Deferred tax | 40,924 | 5,193 | 40,414 | 3,658 |
Group |
Deferred |
tax |
£ |
Balance at 1 November 2022 | 5,193 |
Charge to Income Statement during year | 35,731 |
Balance at 31 October 2023 | 40,924 |
Company |
Deferred |
tax |
£ |
Balance at 1 November 2022 |
Provided during year |
Balance at 31 October 2023 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.10.23 | 31.10.22 |
value: | as restated |
£ | £ |
Ordinary | £1 | 99,998 | 99,998 |
A Ordinary | £1 | 2 | 2 |
100,000 | 100,000 |
Weldon Group Limited (Registered number: 02386158) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
21. | RESERVES |
Group |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
At 1 November 2022 | 4,331,616 | 401,257 | 4,732,873 |
Profit for the year | 2,670,927 | 2,670,927 |
Dividends | (81,998 | ) | (81,998 | ) |
At 31 October 2023 | 6,920,545 | 401,257 | 7,321,802 |
Company |
Retained |
earnings |
£ |
At 1 November 2022 |
Profit for the year |
Dividends | ( |
) |
At 31 October 2023 |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 October 2023 and 31 October 2022: |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
D J Weldon |
Balance outstanding at start of year | - | - |
Amounts advanced | 711,295 | - |
Amounts repaid | (45,862 | ) | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 665,433 | - |
K Weldon |
Balance outstanding at start of year | 402,212 | - |
Amounts advanced | 14,696 | 422,278 |
Amounts repaid | (416,908 | ) | (20,066 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | - | 402,212 |
Loans to directors are interest free and repayable on demand. |
Weldon Group Limited (Registered number: 02386158) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
23. | RELATED PARTY DISCLOSURES |
Included in wages are £9,100 each and in pension contributions £25,000 each for the wives of the directors D Weldon and K Weldon. |
Key management personnel of the entity or its parent (in the | aggregate) |
The directors are the only key management personnel of the group, being the key decision makers. |
24. | ULTIMATE CONTROLLING PARTY |
The directors D Weldon and K Weldon, alongside their wives are joint controlling parties, each owning a combined 50% of the issued share capital. |