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REGISTERED NUMBER: 10155779 (England and Wales)












STEWART SIGNS HOLDINGS LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2023






STEWART SIGNS HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

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 4

Report of the Independent Auditors 6

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


STEWART SIGNS HOLDINGS 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: 10155779 (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 HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

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 results of the group in the year are 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 787,948 405,928 382,020

Gross profit margin 26.8% 29.3%

The trading company, Stewart Signs Limited, 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 group 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 group'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 group had net assets of £2,158,210 (2022: £1,524,266).

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 HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

GROUP 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 HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

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.

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

DIVIDENDS
No dividends will be distributed for the year ended 31 October 2023.

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, key risks and uncertainties and future developments within the separate strategic 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.

STEWART SIGNS HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

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 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.

ON BEHALF OF THE BOARD:





G Livingstone - Director


30 July 2024

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


Opinion
We have audited the financial statements of Stewart Signs Holdings 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.

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.

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.

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


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 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 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.

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 group and the parent company, and the industry in which they operate. 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 group and the parent company.

- We obtained an understanding of how the group and the parent 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.

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

- We assessed the susceptibility of the group's and the parent 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.

- 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 group and the parent 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 HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

CONSOLIDATED 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 (1,934,831 ) (1,793,946 )
813,630 423,404

Other operating income 38,446 -
OPERATING PROFIT 4 852,076 423,404

Interest receivable and similar income 3,096 92
855,172 423,496

Interest payable and similar expenses 5 (67,224 ) (17,568 )
PROFIT BEFORE TAXATION 787,948 405,928

Tax on profit 6 (154,004 ) (122,651 )
PROFIT FOR THE FINANCIAL YEAR 633,944 283,277
Profit attributable to:
Owners of the parent 633,944 283,277

STEWART SIGNS HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

CONSOLIDATED OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023

2023 2022
Notes £ £

PROFIT FOR THE YEAR 633,944 283,277


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

633,944

283,277

Total comprehensive income attributable to:
Owners of the parent 633,944 283,277

STEWART SIGNS HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

CONSOLIDATED BALANCE SHEET
31 OCTOBER 2023

2023 2022
Notes £ £
FIXED ASSETS
Intangible assets 8 976,404 1,311,276
Tangible assets 9 901,293 153,567
Investments 10 - -
1,877,697 1,464,843

CURRENT ASSETS
Stocks 11 849,759 820,342
Debtors 12 2,424,091 2,011,028
Cash at bank and in hand 885,019 678,059
4,158,869 3,509,429
CREDITORS
Amounts falling due within one year 13 (2,909,685 ) (2,692,208 )
NET CURRENT ASSETS 1,249,184 817,221
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,126,881

2,282,064

CREDITORS
Amounts falling due after more than one
year

14

(651,136

)

(631,638

)

PROVISIONS FOR LIABILITIES 18 (317,535 ) (126,160 )
NET ASSETS 2,158,210 1,524,266

CAPITAL AND RESERVES
Called up share capital 19 87,500 87,500
Share premium 20 22,500 22,500
Retained earnings 20 2,048,210 1,414,266
2,158,210 1,524,266

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 HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

COMPANY BALANCE SHEET
31 OCTOBER 2023

2023 2022
Notes £ £
FIXED ASSETS
Intangible assets 8 - -
Tangible assets 9 - -
Investments 10 7,909,357 7,909,357
7,909,357 7,909,357

CURRENT ASSETS
Debtors 12 43,000 53,000
Cash at bank 1,910 2,024
44,910 55,024
CREDITORS
Amounts falling due within one year 13 (336,418 ) (247,231 )
NET CURRENT LIABILITIES (291,508 ) (192,207 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,617,849

7,717,150

CREDITORS
Amounts falling due after more than one
year

14

(7,507,915

)

(7,607,217

)
NET ASSETS 109,934 109,933

CAPITAL AND RESERVES
Called up share capital 19 87,500 87,500
Share premium 22,500 22,500
Retained earnings (66 ) (67 )
109,934 109,933

Company's profit/(loss) for the financial year 1 (402 )

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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 HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023

Called up
share Retained Share Total
capital earnings premium equity
£ £ £ £
Balance at 1 November 2021 87,500 1,130,989 22,500 1,240,989

Changes in equity
Total comprehensive income - 283,277 - 283,277
Balance at 31 October 2022 87,500 1,414,266 22,500 1,524,266

Changes in equity
Total comprehensive income - 633,944 - 633,944
Balance at 31 October 2023 87,500 2,048,210 22,500 2,158,210

STEWART SIGNS HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023

Called up
share Retained Share Total
capital earnings premium equity
£ £ £ £
Balance at 1 November 2021 87,500 335 22,500 110,335

Changes in equity
Total comprehensive income - (402 ) - (402 )
Balance at 31 October 2022 87,500 (67 ) 22,500 109,933

Changes in equity
Total comprehensive income - 1 - 1
Balance at 31 October 2023 87,500 (66 ) 22,500 109,934

STEWART SIGNS HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023

2023 2022
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 1,053,227 256,228
Interest paid (53,072 ) (16,762 )
Interest element of hire purchase and finance
lease rental payments paid

(14,152

)

(806

)
Tax paid (122,976 ) (184,793 )
Net cash from operating activities 863,027 53,867

Cash flows from investing activities
Purchase of tangible fixed assets (227,431 ) (24,416 )
Deposits paid for tangible fixed assets - (33,500 )
Interest received 3,096 92
Net cash from investing activities (224,335 ) (57,824 )

Cash flows from financing activities
New bank loans in year 150,000 -
Bank loan repayments in year (102,003 ) (325,000 )
Loan notes repayments in year (327,000 ) (493,944 )
Finance lease capital repayments in year (7,216 ) (7,009 )
Hire purchase capital repayments in year (145,513 ) -
Net cash from financing activities (431,732 ) (825,953 )

Increase/(decrease) in cash and cash equivalents 206,960 (829,910 )
Cash and cash equivalents at beginning of
year

2

678,059

1,507,969

Cash and cash equivalents at end of year 2 885,019 678,059

STEWART SIGNS HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

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
2023 2022
£ £
Profit before taxation 787,948 405,928
Depreciation charges 477,569 381,316
Decrease in other provisions - (50,000 )
Finance costs 67,224 17,568
Finance income (3,096 ) (92 )
1,329,645 754,720
Increase in stocks (29,417 ) (129,314 )
Increase in trade and other debtors (317,938 ) (601,311 )
Increase in trade and other creditors 70,937 232,133
Cash generated from operations 1,053,227 256,228

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 885,019 678,059
Year ended 31 October 2022
31.10.22 1.11.21
£ £
Cash and cash equivalents 678,059 1,507,969


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.11.22 Cash flow At 31.10.23
£ £ £
Net cash
Cash at bank and in hand 678,059 206,960 885,019
678,059 206,960 885,019
Debt
Hire purchase and finance leases (26,778 ) (510,263 ) (537,041 )
Debts falling due within 1 year (213,000 ) (92,186 ) (305,186 )
Debts falling due after 1 year (611,302 ) 371,189 (240,113 )
(851,080 ) (231,260 ) (1,082,340 )
Total (173,021 ) (24,300 ) (197,321 )

STEWART SIGNS HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

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


1. STATUTORY INFORMATION

Stewart Signs Holdings 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 General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with FRS 102 "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.

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 2016, is being amortised evenly over its estimated useful life of ten years.

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.

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.

STEWART SIGNS HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

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


2. ACCOUNTING POLICIES - continued

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 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.

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.

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.

STEWART SIGNS HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

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


2. ACCOUNTING POLICIES - continued

Financial assets
The company has elected to apply the provisions 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. Dividends 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

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

STEWART SIGNS HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

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


4. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£ £
Depreciation - owned assets 61,709 39,404
Depreciation - assets on hire purchase contracts and finance leases 80,986 7,039
Goodwill amortisation 311,682 311,683
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 interest - 23
Bank loan interest 28,186 18,558
Loan notes interest 24,886 (1,819 )
Hire purchase and finance
lease charges 14,152 806
67,224 17,568

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

STEWART SIGNS HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

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


6. TAXATION - continued

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 787,948 405,928
Profit multiplied by the standard rate of corporation tax in the UK of
22.500 % (2022 - 19 %)

177,288

77,126

Effects of:
Expenses not deductible for tax purposes 1,131 812
Depreciation on non-qualifying assets 1,708 1,635
Goodwill amortisation on consolidation 70,128 59,220
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. 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.

The parent company's profit for the financial year was £1 (2022: £402 loss).

STEWART SIGNS HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

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


8. INTANGIBLE FIXED ASSETS

Group
Development
Goodwill costs Totals
£ £ £
COST
At 1 November 2022
and 31 October 2023 3,116,823 154,598 3,271,421
AMORTISATION
At 1 November 2022 1,870,093 90,052 1,960,145
Amortisation for year 311,682 23,190 334,872
At 31 October 2023 2,181,775 113,242 2,295,017
NET BOOK VALUE
At 31 October 2023 935,048 41,356 976,404
At 31 October 2022 1,246,730 64,546 1,311,276

9. TANGIBLE FIXED ASSETS

Group
Fixtures
Leasehold Plant and and
improvements machinery fittings
£ £ £
COST
At 1 November 2022 13,849 500,241 60,219
Additions - 883,050 1,600
At 31 October 2023 13,849 1,383,291 61,819
DEPRECIATION
At 1 November 2022 12,909 458,508 39,974
Charge for year 940 110,116 6,153
At 31 October 2023 13,849 568,624 46,127
NET BOOK VALUE
At 31 October 2023 - 814,667 15,692
At 31 October 2022 940 41,733 20,245

STEWART SIGNS HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

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


9. TANGIBLE FIXED ASSETS - continued

Group

Motor Computer
vehicles equipment Totals
£ £ £
COST
At 1 November 2022 33,787 215,093 823,189
Additions - 5,771 890,421
At 31 October 2023 33,787 220,864 1,713,610
DEPRECIATION
At 1 November 2022 7,039 151,192 669,622
Charge for year 6,687 18,799 142,695
At 31 October 2023 13,726 169,991 812,317
NET BOOK VALUE
At 31 October 2023 20,061 50,873 901,293
At 31 October 2022 26,748 63,901 153,567

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. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£
COST
At 1 November 2022
and 31 October 2023 7,909,357
NET BOOK VALUE
At 31 October 2023 7,909,357
At 31 October 2022 7,909,357


Fixed asset investments relate to the investment in the subsidiary company, Stewart Signs Limited, which is included in the consolidated financial statements. The registered office of Stewart Signs Limited is Trafalgar Close, Chandlers Ford Industrial Estate, Eastleigh, Hampshire, SO53 4BW.

STEWART SIGNS HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

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


11. STOCKS

Group
2023 2022
£ £
Raw materials & consumables 480,509 524,152
Work-in-progress 340,991 257,190
Finished goods 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).

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£ £ £ £
Trade debtors 2,162,994 1,436,116 - -
Other debtors 46,647 63,641 43,000 53,000
Tax 95,125 - - -
Prepayments and accrued income 119,325 511,271 - -
2,424,091 2,011,028 43,000 53,000

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£ £ £ £
Bank loans and overdrafts (see note 15) 107,884 80,000 - -
Other loans (see note 15) 197,302 133,000 197,302 133,000
Hire purchase contracts and finance leases (see note 16)
126,018

6,442

-

-
Trade creditors 1,078,016 1,229,039 - -
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 1,025,691 943,435 139,116 114,231
2,909,685 2,692,208 336,418 247,231

STEWART SIGNS HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

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


14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group Company
2023 2022 2023 2022
£ £ £ £
Bank loans (see note 15) 240,113 220,000 - -
Other loans (see note 15) - 391,302 - 391,302
Hire purchase contracts and finance leases (see note 16)
411,023

20,336

-

-
Amounts owed to group undertakings - - 7,507,915 7,215,915
651,136 631,638 7,507,915 7,607,217

15. LOANS

An analysis of the maturity of loans is given below:

Group Company
2023 2022 2023 2022
£ £ £ £
Amounts falling due within one year or on demand:
Bank loans - less than 1 year 107,884 80,000 - -
Other loans - less than 1 year 197,302 133,000 197,302 133,000
305,186 213,000 197,302 133,000
Amounts falling due between one and two years:
Bank loans - 1-2 years 109,598 80,000 - -
Other loans - 1-2 years - 133,000 - 133,000
109,598 213,000 - 133,000
Amounts falling due between two and five years:
Bank loans - 2-5 years 130,515 140,000 - -
Other loans - 2-5 years - 258,302 - 258,302
130,515 398,302 - 258,302

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.

STEWART SIGNS HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

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


16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
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

Group
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 HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

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


17. SECURED DEBTS

The following secured debts are included within creditors:

Group
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 group's assets.

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

18. PROVISIONS FOR LIABILITIES

Group
2023 2022
£ £
Deferred tax 203,535 12,160
Other provisions
Warranty provision 114,000 114,000

Aggregate amounts 317,535 126,160

Group
Deferred Other
tax provisions
£ £
Balance at 1 November 2022 12,160 114,000
Accelerated capital allowances 191,375 -
Balance at 31 October 2023 203,535 114,000

19. CALLED UP SHARE CAPITAL

Allotted and issued:

Number: Class: Nominal value: 2023 2022
£    £   

10,000 Preference £0.00001 0 0
25,000 A Ordinary £0.50 12,500 12,500
5,000 B Ordinary £1 5,000 5,000
70,000 C Ordinary £1 70,000 70,000
87,500 87,500

STEWART SIGNS HOLDINGS LIMITED (REGISTERED NUMBER: 10155779)

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


20. RESERVES

Group
Retained Share
earnings premium Totals
£ £ £

At 1 November 2022 1,414,266 22,500 1,436,766
Profit for the year 633,944 633,944
At 31 October 2023 2,048,210 22,500 2,070,710


21. PENSION COMMITMENTS

The group 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.

22. RELATED PARTY DISCLOSURES

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

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

At the balance sheet date, the group 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 group purchased goods totalling £Nil (2022: £1,055) from Diametric Technical Limited.

No amounts were outstanding at the balance sheet date.