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COMPANY REGISTRATION NUMBER: 07041988
Sarant Limited
Financial Statements
31 October 2023
Sarant Limited
Financial Statements
Year ended 31 October 2023
Contents
Page
Strategic report
1
Director's report
3
Independent auditor's report to the members
5
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13
Sarant Limited
Strategic Report
Year ended 31 October 2023
The directors present their strategic report of the company for the year ended 31 October 2023. Review of business The company's principal activities during the year continued to be the manufacture of food produce to the retail and manufacturing sectors. Development and performance during the year The results of the company for the year show a profit on ordinary activities before tax of £748,317 (2022 - £815,461). Turnover has remained constant in relation to 2022. The biggest challenge still remains to be the cost increases on raw materials, the transport costs have still remained challenging but are heading in the correct direction. The director considers the profit achieved and the state of the affairs of the company to be satisfactory. The shareholders' funds total £7,790,267 (2022 - £7,540,246). Business environment The retail sector and the manufacturers supplying the retail sector is highly competitive. There are a huge number of UK and overseas competitors trying to win business in the food sector. Strategy With ongoing significant investment in new machinery, this enables us to continue expanding and developing our products to the highest quality within the food industry. Our aim remains to provide our customers with the confidence that the products they purchase meet the highest standards expected within the food industry. Key performance indicators
2023 2022
£ £
Turnover 19,117,603 19,316,787
Gross profit 5,101,013 5,518,085
GP% 27 29
Net profit before tax 748,317 815,461
NP% 4 4
Position at the year end The performance as at 31st March 2024 indicates that there may be a reduction in turnover for the year ending 31 October 2024, we are however expecting the turnover to achieve the same as previous year as the company sees a stronger performance in the final half of the year. The company is expecting to report a good gross profit by the end of the year, similar to 31st October 2023. Principal risks and uncertainties The company has kept its policy of meeting customers requirements in a timely manner with quality products. This is achieved by meeting expected response times, handing queries promptly with high service levels. Price Risk The company manages this risk by maintaining strong service levels with suppliers and maintaining appropriate stock holdings of raw materials Currency risk The company purchases the majority of its raw materials in USD, AUD or EUR, as such currency accounts are held in these currencies and all risk is hedged.
This report was approved by the board of directors on 11 July 2024 and signed on behalf of the board by:
Mr P Backshall
Director
Registered office:
3rd Floor
44-48 Paul Street
London
EC2A 4LB
Sarant Limited
Director's Report
Year ended 31 October 2023
The director presents his report and the financial statements of the company for the year ended 31 October 2023 .
Director
The director who served the company during the year was as follows:
Mr P Backshall
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Future developments
The company will continue to seek to expand its product portfolio in the year and take full advantage of the growth in the markets it operates in.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The director is 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. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 11 July 2024 and signed on behalf of the board by:
Mr P Backshall
Director
Registered office:
3rd Floor
44-48 Paul Street
London
EC2A 4LB
Sarant Limited
Independent Auditor's Report to the Members of Sarant Limited
Year ended 31 October 2023
Opinion
We have audited the financial statements of Sarant Limited (the 'company') for the year ended 31 October 2023 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 October 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of the director
As explained more fully in the director's responsibilities statement, the director is 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 director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We have performed various procedures throughout the audit, those include: Analytical procedures - This involves trend analysis, ratio analysis and comparative analysis together. All anomalies are discussed with the client to gain a further understanding of the business. Substantive testing - This involves 4 key tests throughout the audit. Transaction testing, Account reconciliations, Confirmation procedures and Vouching to supporting documentation. Specific fraud detection procedures - This involves 3 procedures, Journal entry testing, related party transaction testing and judgements and estimates evaluation We have also obtained external confirmations and verifications where possible and discussed key matters directly with key personnel to identify risks and obtain further evidence for inquiries. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Mark Evans
(Senior Statutory Auditor)
For and on behalf of
EC Professionals Limited
Chartered Certified Accountants & statutory auditor
Britannic House
279 Chanterlands Avenue
Hull
HU5 4DS
11 July 2024
Sarant Limited
Statement of Comprehensive Income
Year ended 31 October 2023
2023
2022
Note
£
£
Turnover
4
19,117,603
19,316,787
Cost of sales
14,016,590
13,798,702
-------------
-------------
Gross profit
5,101,013
5,518,085
Distribution costs
849,848
963,780
Administrative expenses
3,431,662
3,677,252
------------
------------
Operating profit
5
819,503
877,053
Other interest receivable and similar income
9
23,600
24,026
Interest payable and similar expenses
10
94,786
85,618
------------
------------
Profit before taxation
748,317
815,461
Tax on profit
11
136,489
314,057
---------
---------
Profit for the financial year
611,828
501,404
---------
---------
Profit/(Loss) on value of derivative contracts
46,790
(38,032)
Tax on value of derivative contracts
(8,597)
(8,921)
--------
--------
Other comprehensive income for the year
38,193
( 46,953)
---------
---------
Total comprehensive income for the year
650,021
454,451
---------
---------
All the activities of the company are from continuing operations.
Sarant Limited
Statement of Financial Position
31 October 2023
2023
2022
Note
£
£
£
£
Fixed assets
Tangible assets
13
3,708,949
4,092,319
Current assets
Stocks
14
3,649,207
5,630,628
Debtors
15
4,891,440
4,530,884
Cash at bank and in hand
323,862
374,760
------------
-------------
8,864,509
10,536,272
Creditors: amounts falling due within one year
16
3,765,662
5,591,223
------------
-------------
Net current assets
5,098,847
4,945,049
------------
------------
Total assets less current liabilities
8,807,796
9,037,368
Creditors: amounts falling due after more than one year
17
568,648
1,047,391
Provisions
Taxation including deferred tax
19
448,881
449,731
------------
------------
Net assets
7,790,267
7,540,246
------------
------------
Capital and reserves
Called up share capital
23
80
80
Profit and loss account
7,790,187
7,540,166
------------
------------
Shareholders funds
7,790,267
7,540,246
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 11 July 2024 , and are signed on behalf of the board by:
Mr P Backshall
Director
Company registration number: 07041988
Sarant Limited
Statement of Changes in Equity
Year ended 31 October 2023
Called up share capital
Profit and loss account
Total
£
£
£
At 1 November 2021
80
7,485,715
7,485,795
Profit for the year
501,404
501,404
Other comprehensive income for the year:
Profit/(Loss) on value of derivative contracts
(38,032)
(38,032)
Tax on value of derivative contracts
(8,921)
(8,921)
----
------------
------------
Total comprehensive income for the year
454,451
454,451
Dividends paid and payable
12
( 400,000)
( 400,000)
----
------------
------------
Total investments by and distributions to owners
( 400,000)
( 400,000)
At 31 October 2022
80
7,540,166
7,540,246
Profit for the year
611,828
611,828
Other comprehensive income for the year:
Profit/(Loss) on value of derivative contracts
46,790
46,790
Tax on value of derivative contracts
(8,597)
(8,597)
----
------------
------------
Total comprehensive income for the year
650,021
650,021
Dividends paid and payable
12
( 400,000)
( 400,000)
----
---------
---------
Total investments by and distributions to owners
( 400,000)
( 400,000)
----
------------
------------
At 31 October 2023
80
7,790,187
7,790,267
----
------------
------------
Sarant Limited
Statement of Cash Flows
Year ended 31 October 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
611,828
501,404
Adjustments for:
Depreciation of tangible assets
512,185
484,973
Other interest receivable and similar income
( 23,600)
( 24,026)
Interest payable and similar expenses
94,786
85,618
Gains on disposal of tangible assets
( 2,550)
Tax on profit
136,489
314,057
Accrued income
( 75,000)
Changes in:
Stocks
1,981,421
1,381,136
Trade and other debtors
( 360,556)
977,937
Trade and other creditors
( 1,849,773)
( 2,467,996)
------------
------------
Cash generated from operations
1,027,780
1,250,553
Interest paid
( 94,786)
( 85,618)
Interest received
23,600
24,026
Tax received
66
------------
------------
Net cash from operating activities
956,660
1,188,961
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 128,815)
( 552,624)
Proceeds from sale of tangible assets
4,000
Profits/(losses) on market value of future contracts
( 38,193)
( 46,953)
------------
------------
Net cash used in investing activities
( 167,008)
( 595,577)
------------
------------
Cash flows from financing activities
Proceeds from borrowings
435,265
Repayments of borrowings
( 87,000)
( 80,049)
Payments of finance lease liabilities
( 353,550)
( 330,391)
Dividends paid
( 400,000)
( 400,000)
------------
------------
Net cash used in financing activities
( 840,550)
( 375,175)
------------
------------
Net (decrease)/increase in cash and cash equivalents
( 50,898)
218,209
Cash and cash equivalents at beginning of year
374,760
156,551
---------
---------
Cash and cash equivalents at end of year
323,862
374,760
---------
---------
Sarant Limited
Notes to the Financial Statements
Year ended 31 October 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 3rd Floor, 44-48 Paul Street, London, EC2A 4LB.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property
-
2% straight line
Long leasehold property
-
2% straight line
Plant and machinery
-
20% on cost, 10% on cost
Fixtures and fittings
-
30% on cost, 25% on cost, 10% on cost
Motor vehicles
-
25% straight line
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
4. Turnover
Turnover arises from:
2023
2022
£
£
Sale of goods UK
17,574,003
17,695,430
Sale of goods outside if UK
1,543,600
1,621,357
-------------
-------------
19,117,603
19,316,787
-------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
512,185
484,973
Gains on disposal of tangible assets
( 2,550)
Impairment of trade debtors
(875)
32,301
Foreign exchange differences
( 96,204)
285,508
---------
---------
6. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
6,000
6,000
-------
-------
7. Staff costs
The average number of persons employed by the company during the year, including the director, amounted to:
2023
2022
No.
No.
Production staff
68
71
Management staff
5
5
----
----
73
76
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
1,804,611
1,653,372
Social security costs
185,280
220,625
Other pension costs
25,891
34,714
------------
------------
2,015,782
1,908,711
------------
------------
8. Director's remuneration
The director's aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
166,413
167,325
---------
---------
9. Other interest receivable and similar income
2023
2022
£
£
Interest on bank deposits
23,600
24,026
--------
--------
10. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
94,786
85,618
--------
--------
11. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
137,339
Deferred tax:
Origination and reversal of timing differences
( 850)
314,057
---------
---------
Tax on profit
136,489
314,057
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2022: higher than) the standard rate of corporation tax in the UK of 22.51 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
748,317
815,461
---------
---------
Profit on ordinary activities by rate of tax
168,505
154,938
Effect of expenses not deductible for tax purposes
3,522
2,593
Effect of capital allowances and depreciation
60,131
( 75,692)
Utilisation of tax losses
( 2,069)
Unused tax losses
1,746
Deferred tax charge
(850)
314,057
Effects of research and development costs
(92,750)
(83,585)
---------
---------
Tax on profit
136,489
314,057
---------
---------
12. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
2023
2022
£
£
Dividends on equity shares
400,000
400,000
---------
---------
13. Tangible assets
Land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Assets under construction
Total
£
£
£
£
£
£
Cost
At 1 Nov 2022
1,327,494
5,631,239
85,748
178,992
177,753
7,401,226
Additions
90,892
5,223
32,700
128,815
Transfers
14,500
(14,500)
------------
------------
--------
---------
---------
------------
At 31 Oct 2023
1,327,494
5,736,631
90,971
211,692
163,253
7,530,041
------------
------------
--------
---------
---------
------------
Depreciation
At 1 Nov 2022
248,824
2,819,178
77,946
162,959
3,308,907
Charge for the year
14,446
484,835
3,394
9,510
512,185
------------
------------
--------
---------
---------
------------
At 31 Oct 2023
263,270
3,304,013
81,340
172,469
3,821,092
------------
------------
--------
---------
---------
------------
Carrying amount
At 31 Oct 2023
1,064,224
2,432,618
9,631
39,223
163,253
3,708,949
------------
------------
--------
---------
---------
------------
At 31 Oct 2022
1,078,670
2,812,061
7,802
16,033
177,753
4,092,319
------------
------------
--------
---------
---------
------------
14. Stocks
2023
2022
£
£
Finished goods and goods for resale
3,649,207
5,630,628
------------
------------
15. Debtors
2023
2022
£
£
Trade debtors
3,230,886
3,072,838
Amounts owed by undertakings in which the company has a participating interest
89,202
1,455
Prepayments and accrued income
73,590
45,213
VAT
55,188
68,410
Other debtors
1,442,574
1,342,968
------------
------------
4,891,440
4,530,884
------------
------------
16. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
85,988
85,988
Trade creditors
1,349,700
2,036,933
Accruals and deferred income
1,663,221
1,504,628
Corporation tax
174,354
11,881
Social security and other taxes
43,679
46,173
Obligations under finance leases and hire purchase contracts
353,549
353,549
Other creditors
1,320
249
Factoring account
93,851
1,551,822
------------
------------
3,765,662
5,591,223
------------
------------
An All Assets Debenture, Debenture Deed, Memorandum of Pledge and Hypothecation of Goods, Mortgage and Mortgage Deed are held by the company's bankers and factors over the company's assets.
17. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
419,056
506,056
Obligations under finance leases and hire purchase contracts
131,089
484,639
Derivative financial liability
18,503
56,696
---------
------------
568,648
1,047,391
---------
------------
18. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2023
2022
£
£
Not later than 1 year
353,549
353,549
Later than 1 year and not later than 5 years
131,089
484,639
---------
---------
484,638
838,188
---------
---------
19. Provisions
Deferred tax (note 20)
£
At 1 November 2022
449,731
Charge against provision
( 850)
---------
At 31 October 2023
448,881
---------
20. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 19)
448,881
449,731
---------
---------
21. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 25,891 (2022: £ 34,714 ).
22. Financial instruments
The carrying amount for each category of financial instrument is as follows:
2023
2022
£
£
Financial assets measured at fair value through profit or loss
Financial assets measured at fair value through profit or loss
18,503
56,696
--------
--------
23. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
80
80
80
80
----
----
----
----
24. Analysis of changes in net debt
At 1 Nov 2022
Cash flows
At 31 Oct 2023
£
£
£
Cash at bank and in hand
374,760
(50,898)
323,862
Debt due within one year
(439,537)
(439,537)
Debt due after one year
(990,695)
440,550
(550,145)
------------
---------
---------
( 1,055,472)
389,652
( 665,820)
------------
---------
---------
25. Director's advances, credits and guarantees
During the year there were no director's advances, credits and guarantees.
26. Related party transactions
During the period the company transacted with Property & Risk Management Services Limited, to supply insurance brokering services worth £8,100 (2022: £8,100). The amount owed to this company is £1,350 (2022: nil). The director of Property Risk Management Services is a relative of Paul Backshall. During the period the company transacted with JRN Distribution Limited, the company sold goods worth £172,633. The amount owed by this company is £89,085 (2022: £1,238). The company is owned by Mr Paul Backshall. All services were provided at full market value. As at 31st October 2023, the director owes £1,078,559 to the company. This balance will not be paid off within 9 months of the year end and S455 tax has been applied accordingly.
Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the company was £ 472,048 (2022: £ 462,092 ).
27. Controlling party
Mr P Backshall , the sole director has ultimate control of the company.