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REGISTERED NUMBER: 00782263 (England and Wales)












STEWART SIGNS LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2023






STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


STEWART SIGNS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 OCTOBER 2023







DIRECTORS: A S Townson
M J Townson
M G Barcia
G Livingstone


REGISTERED OFFICE: Trafalgar Close
Chandlers Ford Industrial Estate
Eastleigh
Hampshire
SO53 4BW


REGISTERED NUMBER: 00782263 (England and Wales)


SENIOR STATUTORY AUDITOR: James Flood FCA


AUDITORS: Hopper Williams & Bell Limited
Statutory Auditor
Highland House
Mayflower Close
Chandler's Ford
Eastleigh
Hampshire
SO53 4AR


BANKERS: HSBC Bank plc
58 High Street
Winchester
Hampshire
SO23 9BZ

STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023


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

REVIEW OF BUSINESS
The results of the company in the year is as follows:

31.10.23 (£) 31.10.22 (£) Variance
Turnover 10,267,467 7,563,144 2,704,323
Gross profit 2,748,461 2,217,350 531,111
Profit before tax 1,124,628 718,013 406,615

Gross profit margin 26.8% 29.3%

The company experienced a significantly improved financial performance in 2022-23 compared to the previous year, driven by higher demand in core markets and successful market expansion. Gross profit was strong and net profit rose due to enhanced operational efficiency and cost management. Positive cash flow was maintained through effective cash management and strategic investments. Key strategic initiatives included entering new geographical markets, launching innovative products, implementing Lean Six Sigma to streamline operations, and strengthening customer relationships through targeted marketing. The company adapted to industry trends, such as increased post-pandemic demand and sustainability, while maintaining a competitive edge through superior quality and customisation. Risk management strategies included diversifying revenue streams, enhancing cybersecurity, and complying with industry regulations. Looking ahead, Stewart Signs plans to expand into high-growth markets, invest in technology, reduce its carbon footprint through sustainable practices, and digitalize operations to enhance customer engagement and operational efficiency. Overall, the company's strong financial performance and strategic agility position it well for sustained growth and profitability in the coming years.

We have made significant capital investment this year, particularly in digital print, cutting and routing, and this provides us with the flexibility to provide a wider range of products and services, and improve value for money for clients. In addition, we are pursuing a range of innovations, as we press ahead with our ideas for business development.

Our balance sheet continues to strengthen, and although we suffered a decrease in gross margin, we are working hard in terms of controlling direct costs and overheads to counter this in the following year.

At the balance sheet date, the company had net assets of £9,022,585 which is an increase of 11.7% from the prior year.

PRINCIPAL RISKS AND UNCERTAINTIES
We are optimistic about the upcoming year, expecting inflation to decrease, which should lower our suppliers' factory prices and reduce energy costs. The confidence of our clients will be crucial, along with the influence of government policy, especially considering the 2024 UK election.

The challenges in vehicle supply have improved, which will boost our fleet livery sales. Additionally, developments in the rail sector will create significant opportunities for us.

FUTURE OUTLOOK
The directors forecast strong sales in 2024 and are making strategic decisions to ensure this follows through for the rest of the year. Included will be further investment in our existing personnel, through development and training, particularly higher-level apprenticeships between levels 3 and 5. We are also seeking to recruit in key areas such as technology, innovation, business development and project management to support our client delivery work.


STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

RESEARCH AND DEVELOPMENT
We continue our work in R&D and innovation, with support from our increasing involvement with academia.

ON BEHALF OF THE BOARD:





G Livingstone - Director


30 July 2024

STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 OCTOBER 2023


The directors present their report with the financial statements of the company for the year ended 31 October 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of manufacturing and installation of signs, graphic media, and livery.

DIVIDENDS
An interim dividend of 17.523p per share was paid on 31 October 2023. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 October 2023 will be £25,000 (2022: £Nil).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report.

A S Townson
M J Townson
M G Barcia
G Livingstone

Other changes in directors holding office are as follows:

M J Harris ceased to be a director after 31 October 2023 but prior to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT
The directors set out an analysis of the company's performance, details of key risks and uncertainties, details of research and development activities and details of future developments within the separate strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 of 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 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 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.

STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 OCTOBER 2023


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 company'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 company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





G Livingstone - Director


30 July 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
STEWART SIGNS LIMITED


Opinion
We have audited the financial statements of Stewart Signs Limited (the 'company') for the year ended 31 October 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 company's affairs as at 31 October 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 directors are responsible for the other information. The other information comprises the information in the 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.

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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
STEWART SIGNS LIMITED


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 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, 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 Statement of Directors' Responsibilities set out on page four, 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 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.

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.

Extent to which the audit was 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. Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities even though the audit has been properly planned and performed in accordance with the ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, and the industry in which it operates. These include but are not limited to compliance with the Companies Act 2006, UK Generally Accepted Accounting Principles and the relevant tax compliance regulations for the company.

- We obtained an understanding of how the company is complying with these frameworks through discussions with management.

- We enquired with management whether there were any instances of non-compliance with laws and regulations or whether they had knowledge of actual or suspected fraud. These enquiries are corroborated through follow-up audit procedures including but not limited to a review of legal and professional costs and correspondence.

- We assessed the susceptibility of the company's financial statements to material misstatement, including the risk of fraud and management override of controls. We designed our audit procedures to respond to this assessment, including the identification and testing of any related party transactions and the testing of journal transactions that arise from management estimates, that are determined to be of significant value or unusual in their nature.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
STEWART SIGNS LIMITED

- We assessed the appropriateness of the collective competence and capabilities of the engagement team, including consideration of the engagement team's knowledge and understanding of the industry in which the company operates in, and their practical experience through training and participation with audit engagements of a similar nature.

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.

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.




James Flood FCA (Senior Statutory Auditor)
for and on behalf of Hopper Williams & Bell Limited
Statutory Auditor
Highland House
Mayflower Close
Chandler's Ford
Eastleigh
Hampshire
SO53 4AR

30 July 2024

STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

INCOME STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023

2023 2022
Notes £ £

TURNOVER 10,267,467 7,563,144

Cost of sales (7,519,006 ) (5,345,794 )
GROSS PROFIT 2,748,461 2,217,350

Administrative expenses (1,623,037 ) (1,482,198 )
1,125,424 735,152

Other operating income 38,446 -
OPERATING PROFIT 4 1,163,870 735,152

Interest receivable and similar income 3,096 92
1,166,966 735,244

Interest payable and similar expenses 5 (42,338 ) (17,231 )
PROFIT BEFORE TAXATION 1,124,628 718,013

Tax on profit 6 (154,004 ) (122,651 )
PROFIT FOR THE FINANCIAL YEAR 970,624 595,362

STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023

2023 2022
Notes £ £

PROFIT FOR THE YEAR 970,624 595,362


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

970,624

595,362

STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

BALANCE SHEET
31 OCTOBER 2023

2023 2022
Notes £ £
FIXED ASSETS
Intangible assets 8 41,356 64,546
Tangible assets 9 901,292 153,568
942,648 218,114

CURRENT ASSETS
Stocks 10 849,759 820,342
Debtors 11 9,889,006 9,173,943
Cash at bank and in hand 883,109 676,035
11,621,874 10,670,320
CREDITORS
Amounts falling due within one year 12 (2,573,266 ) (2,444,977 )
NET CURRENT ASSETS 9,048,608 8,225,343
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,991,256

8,443,457

CREDITORS
Amounts falling due after more than one
year

13

(651,136

)

(240,336

)

PROVISIONS FOR LIABILITIES 17 (317,535 ) (126,160 )
NET ASSETS 9,022,585 8,076,961

CAPITAL AND RESERVES
Called up share capital 18 142,666 142,666
Retained earnings 19 8,879,919 7,934,295
SHAREHOLDERS' FUNDS 9,022,585 8,076,961

The financial statements were approved by the Board of Directors and authorised for issue on 30 July 2024 and were signed on its behalf by:





G Livingstone - Director


STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

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 142,666 7,338,933 7,481,599

Changes in equity
Total comprehensive income - 595,362 595,362
Balance at 31 October 2022 142,666 7,934,295 8,076,961

Changes in equity
Dividends - (25,000 ) (25,000 )
Total comprehensive income - 970,624 970,624
Balance at 31 October 2023 142,666 8,879,919 9,022,585

STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023


1. STATUTORY INFORMATION

Stewart Signs Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with FRS102 "The Financial Reporting Standards 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 £1.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Turnover
Turnover represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the value of the consideration due, net of value added tax.

Where a contract has only been partially completed at the balance sheet date, turnover represents the value of the service provided to date based on a proportion of the total expected consideration at completion. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2006, has now been fully amortised.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences have now been fully amortised.

Development costs are being amortised on a 15% straight line basis.

Amortisation charges are included in administrative expenses in the Income Statement.

STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are initially recognised at cost within the financial statements.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Leasehold improvements- Over the length of the lease
Plant and machinery- 15-33% straight line
Fixtures and fittings- 10% straight line
Motor vehicles- 25% reducing balance
Computer equipment- 15-33% straight line

The profit 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 recognised in the income statement.

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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The capital element of the future payments is treated as a liability and the interest is charged to the profit and loss account on a straight line basis.

Operating lease agreements
Rentals payable on operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial assets
The Company has elected to apply the provision of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include trade and other receivables and cash and bank balances are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financial transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Financial liabilities
Basic financial liabilities which include trade and other payables, are initially measured at transaction price and subsequently measured at amortised cost, unless the arrangement constitutes a financing transaction where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Equity instruments
Equity instruments issued by the company are recorded at the fair value of the proceeds received net of direct issue costs. Dividend's payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

3. EMPLOYEES AND DIRECTORS
2023 2022
£ £
Wages and salaries 2,687,493 2,228,807
Social security costs 252,847 227,600
Other pension costs 125,549 116,587
3,065,889 2,572,994

STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


3. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2023 2022

Office and management 34 35
Manufacturing and production 34 32
68 67

2023 2022
£ £
Directors' remuneration 174,250 164,950
Directors' pension contributions to money purchase schemes 7,178 4,814

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

4. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£ £
Depreciation - owned assets 61,711 39,405
Depreciation - assets on hire purchase contracts and finance leases 80,986 7,039
Development costs amortisation 23,190 23,190
Auditors' remuneration 13,800 13,150
Auditors' remuneration for non audit work 16,115 4,503
Foreign exchange differences 923 6,158
Operating lease expenses 286,522 272,679

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£ £
Bank loan interest 28,186 16,425
Hire purchase and finance
lease charges 14,152 806
42,338 17,231

STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£ £
Current tax:
UK corporation tax 57,754 122,976
Prior year over provision (95,125 ) -
Total current tax (37,371 ) 122,976

Deferred tax 191,375 (325 )
Tax on profit 154,004 122,651

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£ £
Profit before tax 1,124,628 718,013
Profit multiplied by the standard rate of corporation tax in the UK of
22.500% (2022 - 19%)

253,041

136,422

Effects of:
Expenses not deductible for tax purposes 1,131 813
Depreciation on non-qualifying assets 1,708 1,635
Group relief (5,625 ) (77 )
Prior year over provision in respect of R&D (95,125 ) -
Effect of different rates of tax for corporation tax and deferred tax 19,137 (78 )
Impact of capital allowances super deduction (19,141 ) (1,392 )
Expenditure timing differences 501 (13,187 )
Treatment of finance lease payments (1,623 ) (1,485 )
Total tax charge 154,004 122,651

The average rate of corporation tax for the year was 22.5%. The rate increased from 19% to 25% on 1 April 2023.

7. DIVIDENDS
2023 2022
£ £
Interim 25,000 -

STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


8. INTANGIBLE FIXED ASSETS
Patents and Development
Goodwill licences costs Totals
£ £ £ £
COST
At 1 November 2022
and 31 October 2023 92,323 18,991 154,598 265,912
AMORTISATION
At 1 November 2022 92,323 18,991 90,052 201,366
Amortisation for year - - 23,190 23,190
At 31 October 2023 92,323 18,991 113,242 224,556
NET BOOK VALUE
At 31 October 2023 - - 41,356 41,356
At 31 October 2022 - - 64,546 64,546

9. TANGIBLE FIXED ASSETS
Fixtures
Leasehold Plant and and
improvements machinery fittings
£ £ £
COST
At 1 November 2022 164,230 1,030,487 115,378
Additions - 883,050 1,600
At 31 October 2023 164,230 1,913,537 116,978
DEPRECIATION
At 1 November 2022 163,289 988,753 95,134
Charge for year 941 110,117 6,153
At 31 October 2023 164,230 1,098,870 101,287
NET BOOK VALUE
At 31 October 2023 - 814,667 15,691
At 31 October 2022 941 41,734 20,244

STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


9. TANGIBLE FIXED ASSETS - continued

Motor Computer
vehicles equipment Totals
£ £ £
COST
At 1 November 2022 33,787 277,416 1,621,298
Additions - 5,771 890,421
At 31 October 2023 33,787 283,187 2,511,719
DEPRECIATION
At 1 November 2022 7,039 213,515 1,467,730
Charge for year 6,687 18,799 142,697
At 31 October 2023 13,726 232,314 1,610,427
NET BOOK VALUE
At 31 October 2023 20,061 50,873 901,292
At 31 October 2022 26,748 63,901 153,568

The net book value of tangible fixed assets within the above includes £608,752 (2022: £26,748) in respect of assets held on finance lease agreements or under hire purchase contracts. The depreciation charge for the year relating to these assets amounted to £80,986 (2022: £7,039).

10. STOCKS
2023 2022
£ £
Raw materials & consumables 480,509 524,152
Work-in-progress 340,991 257,190
Finished goods for resale 28,259 39,000
849,759 820,342

Stock recognised in cost of sales during the year as an expense was £3,048,676 (2022: £2,110,380).

11. DEBTORS
2023 2022
£ £
Amounts falling due within one year:
Trade debtors 2,162,994 1,436,116
Other debtors 3,647 10,641
Tax 95,125 -
Prepayments and accrued income 119,325 511,271
2,381,091 1,958,028

STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


11. DEBTORS - continued
2023 2022
£ £
Amounts falling due after more than one year:
Amounts owed by group undertakings 7,507,915 7,215,915

Aggregate amounts 9,889,006 9,173,943

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£ £
Bank loans and overdrafts (see note 14) 107,884 80,000
Hire purchase contracts and finance leases (see note 15)
126,018

6,442
Trade creditors 1,078,013 1,229,038
Tax 57,754 122,976
Social security and other taxes 57,220 56,781
VAT 236,537 100,977
Other creditors 23,263 19,558
Accruals and deferred income 886,577 829,205
2,573,266 2,444,977

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£ £
Bank loans (see note 14) 240,113 220,000
Hire purchase contracts and finance leases (see note 15)
411,023

20,336
651,136 240,336

14. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£ £
Amounts falling due within one year or on demand:
Bank loans - less than 1 year 107,884 80,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 109,598 80,000

Amounts falling due between two and five years:
Bank loans - 2-5 years 130,515 140,000

STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


14. LOANS - continued

The bank loans are repayable in instalments by July 2026 and December 2027. They carry interest at a fixed rate of 3.99% above base rate and a fixed rate of 5.98% respectively.

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts Finance leases
2023 2022 2023 2022
£ £ £ £
Gross obligations repayable:
Within one year 138,662 - 7,214 7,214
Between one and five years 462,583 - 13,622 20,836
601,245 - 20,836 28,050

Finance charges repayable:
Within one year 19,323 - 535 772
Between one and five years 64,444 - 738 500
83,767 - 1,273 1,272

Net obligations repayable:
Within one year 119,339 - 6,679 6,442
Between one and five years 398,139 - 12,884 20,336
517,478 - 19,563 26,778

Non-cancellable
operating leases
2023 2022
£ £
Within one year 83,985 256,061
Between one and five years 23,947 74,189
107,932 330,250

STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


16. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£ £
Bank loans 347,997 300,000
Hire purchase contracts 517,477 -
865,474 300,000

Bank loans are secured by debenture, including fixed and floating charges over the company's assets.

Hire purchase liabilities are secured against the assets to which they relate.

17. PROVISIONS FOR LIABILITIES
2023 2022
£ £
Deferred tax 203,535 12,160
Warranty provision 114,000 114,000
317,535 126,160

Deferred tax
£
Balance at 1 November 2022 12,160
Accelerated capital allowances 191,375
Balance at 31 October 2023 203,535

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £ £
142,666 Ordinary £1 142,666 142,666

Shares rank equally for voting purposes and dividend rights.

19. RESERVES
Retained
earnings
£

At 1 November 2022 7,934,295
Profit for the year 970,624
Dividends (25,000 )
At 31 October 2023 8,879,919

STEWART SIGNS LIMITED (REGISTERED NUMBER: 00782263)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


20. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. Employer's contributions payable for the year amounted to £125,549 (2022: £116,587). Employer`s contributions amounting to £11,892 (2022: £9,664) were outstanding at the year end and are included within other creditors.

21. ULTIMATE PARENT COMPANY

Stewart Signs Holdings Limited is regarded by the directors as being the company's ultimate parent company.

Stewart Signs Holdings Limited prepares consolidated accounts which include Stewart Signs Limited. These accounts are available from its registered office, Trafalgar Close, Chandlers Ford Industrial Estate, Eastleigh, Hampshire, SO53 4BW.

22. RELATED PARTY DISCLOSURES

Meridian Corporate Finance Limited
A company controlled by M Barcia (director).

During the year, services were provided by Meridian Corporate Finance Limited totalling £6,000 (2022: £6,000).

At the balance sheet date, the company owed Meridian Corporate Finance Limited £6,000 (2022: £6,000); this balance is included in accruals and deferred income.

Diametric Technical Limited
A company controlled by Diametric Tech Services Limited, of which M Barcia (director) is both a shareholder and director.

During the year, the company purchased goods totalling £Nil (2022: £1,055) from Diametric Technical Limited.

No amounts were outstanding at the balance sheet date.