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Registered number: 00129755









G.R.WRIGHT & SONS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
G.R.WRIGHT & SONS LIMITED
 
 
COMPANY INFORMATION


Directors
D A Wright 
J A Wright 
L J Kaye 
J A Woodgate 
M P Robinson 




Company secretary
L J Kaye



Registered number
00129755



Registered office
Harlow Mill The Pinnacles
Roydon Road

Harlow

Essex

CM19 5GH




Independent auditors
Barnes Roffe LLP
Statutory auditor

Chartered Accountants

Leytonstone House

Leytonstone

London

E11 1GA





 
G.R.WRIGHT & SONS LIMITED
 

CONTENTS



Page
Group strategic report
 
1 - 3
Directors' report
 
4 - 6
Independent auditor's report
 
7 - 11
Consolidated statement of comprehensive income
 
12
Consolidated statement of financial position
 
13 - 14
Company statement of financial position
 
15 - 16
Consolidated statement of changes in equity
 
17
Company statement of changes in equity
 
18
Consolidated statement of cash flows
 
19 - 20
Consolidated analysis of net debt
 
21
Notes to the financial statements
 
22 - 47


 
G.R.WRIGHT & SONS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present the Strategic report and financial statements for the year ended 31 December 2023.

Business review
 
The Company produces a variety of milled flours together with a range of specialty cake and bread mixes at Ponders End, Harlow Mill and Delta Park. During the year turnover increased by 13.6% from £77.5m to £88.0m (2022 - increased by 23.6% from £62.7m to £77.5m). This generated a profit after tax of £6.4m (2022 - £2.9m) and cash and cash equivalents have increased by £7.2m (2022 - decreased by £1.0m) from £4.2m to £11.4m during the financial year.

Principal risks and uncertainties
 
There are certain risks and uncertainties in the business which could affect future performance.
                                                                                                                                                                                                                                                           These include:
Competitor activity - we operate in a fiercely competitive market environment and we aim to differentiate ourselves through innovation and we continue to invest in the latest processes and technology in order to produce premium quality baking products. We are committed to providing a quality service for all our customers.
Commodity price volatility - the Company manages fluctuations in raw material prices by purchasing physical stocks through contracts up to 12 months in advance to ensure continuity of supply and price. Wheat is purchased at different times in the year to even out peaks and troughs and therefore mitigate against price volatility.
Credit risk - policies are in place to ensure appropriate credit checks are undertaken on potential customers. A credit insurance facility is also in place. 
Liquidity - the Company maintains sufficient cash resources to meet day-to-day operating and investment requirements.

Financial key performance indicators
 
The company uses several key performance indicators to monitor performance. These include sales volumes, gross and net margins, cost per tonne and management of cost versus budget monthly departmental reporting.

Other key performance indicators
 
The Company views adherence to food hygiene standards and Health & Safety at work as key non-financial performance measures. Procedures are in place and monitored on an ongoing basis to ensure that the company adheres to the highest standards of food hygiene and that the risk to its workforce from accidents is minimised. We have several weekly and monthly KPIs in place to evaluate our productivity and the effectiveness of our manufacturing operation.

Page 1

 
G.R.WRIGHT & SONS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Directors' statement of compliance with duty to promote the success of the Group
 
The Board of directors of the Company consider that they have fulfilled their individual and collective duty under section 172(1) of the Companies Act 2006 to act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of shareholders as a whole and in doing so, have had regard to and recognised the importance of considering all stakeholders and other matters, as detailed below:
(a) Long-Term Sustainability
The long-term viability of the Company and business model is at the forefront of decision making. The Company continues to expand its client service offering, thus ensuring long-term sustainability for the business.
(b) Interests of Employees
The Company places considerable value on the health, safety and well-being of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the Company. This is achieved through formal and informal meetings and actively promoting equality and diversity. We are committed to ensuring that male and female employees are paid equally for equivalent work and to being an equal opportunity employer.
(c) Interests of Other Stakeholders (Suppliers, Customers, Other)
Clients
The directors ensure that stakeholder management plans are in place for key customers and that appropriate levels of management time is afforded to meet with customers and understand their needs. Customer service is extremely important to the Company and remains a top priority.
Suppliers
The Company is highly committed to maintaining strong relationships with all suppliers and we strive to manage these relationships as closely as possible to ensure core values are shared. The Company is committed to ensuring the highest standards of quality across our operations and we require our suppliers to operate to the same high standards. We continue to maintain long-standing relationships with all key suppliers.
Partners
The commercial partners of the Company remain as important as ever and we are pleased to have multi-year contracts in place with key partners.
(d) Impact on Community and Environment
The Company aims to be an important part of the community and to create value for all stakeholders. We are also committed to the ongoing ethical and sustainable treatment of the environment, and engage in a range of other environmentally mindful business practices.
(e) High Standards of Business Conduct
The Company maintains a framework of behaviours to deliver future success of the business. It is based on what our best performing people already do to produce outstanding results, and what is needed for the future.
The Company is committed to ensuring there is no modern slavery or human trafficking in our supply chain or in any part of the business. The Anti-Slavery Policy reflects the commitment to act ethically and with integrity in all business relationships. The Company is committed to paying the right amount of tax on a timely basis in accordance with tax law and practice in the UK. All tax and compliance obligations are strictly adhered to.
 
Page 2

 
G.R.WRIGHT & SONS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

(f) Act Fairly Between Members of the Company
The Board aims to understand the views of its shareholders and always to act in their best interests by ensuring operations, strategy and performance are aligned with the long-term objectives of the shareholders, while complying with the Articles of Association of the Company, and in line with the highest standards of conduct as laid out in Company policies. 

Going concern

In preparing these financial statements, the directors have assessed the Company's financial performance and position and believe that the Company has adequate resources to continue its operational existence and meet its liabilities as they fall due for a period of at least 12 months from the date of approval of the financial statements. Thus, we have adopted the going concern basis of accounting in preparing the financial statements. Further details are provided in note 2 to the financial statements. 


This report was approved by the board on 29 July 2024 and signed on its behalf.



D A Wright
Director

Page 3

 
G.R.WRIGHT & SONS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 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 for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £6,371,012 (2022 - £2,857,184).

Dividends of £80,000 (2022 - £60,000) were paid during the year. 

Directors

The directors who served during the year were:

D A Wright 
J A Wright 
L J Kaye 
J A Woodgate 
M P Robinson 

Future developments

The Company intends to continue its main activity of flour milling and associated activities and maximise its use of its new state of the art facility in Harlow.

Page 4

 
G.R.WRIGHT & SONS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Qualifying third party indemnity provisions

During the year and up to the date of this report, the Company maintained liability insurance and third-party indemnification provisions for its directors, under which the Company has agreed to indemnify the directors to the extent permitted by law in respect of all liabilities to third parties arising out of, or in connection with, the execution of their powers, duties and responsibilities as directors of the Company. 

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group's greenhouse gas emissions and energy consumption are as follows: 


2023
2022

Emissions resulting from activities for which the Group is responsible involving the combustion of gas or consumption of fuel for the purposes of transport (in tonnes of CO2 equivalent)
1334
1606

Emissions resulting from the purchase of the electricity by the Group for its own use, including the purposes of transport (in tonnes of CO2 equivalent)
7613
5979

Energy consumed from activities for which the Group is responsible involving the combustion of gas, or the consumption of fuel for the purposes of transport, and the annual quantity of energy consumed resulting from the purchase of electricity by the Group for its own use, including for the purposes of transport, in kWh
15.2 million
14.1 million

The emissions (in tonnes of CO2 equivalent) per tonne of output produced and per tonne of output hauled is 0.042 and 0.010 respectively.

The calculation of Carbon tonnage follows recognised principles:
Electricity
The site consumption is converted back to primary energy i.e. to include transmission losses from original generation. This is then converted to tonnes of CO2. CO2 per tonne of production is calculated by dividing the total annual tonnes of CO2 by the tonnes of wheat milled (i.e. total production).
Diesel
Diesel used is converted to CO2 tonnage and divided by the tonnage hauled to obtain the CO2 per tonne hauled for our fleet.

Matters covered in the Group Strategic Report

The directors consideration of the financial risk management objectives and policies of the Company are covered as part of the principal risk and uncertainties disclosed within the Strategic Report on page 1. The directors consideration of the Company's engagement with suppliers, customers and other stakeholders is covered as part of the director's statement of compliance with duty to promote the success of the Company within the Strategic Report on page 2.

Page 5

 
G.R.WRIGHT & SONS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsBarnes Roffe LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 29 July 2024 and signed on its behalf.
 





D A Wright
Director

Page 6

 
G.R.WRIGHT & SONS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF G.R.WRIGHT & SONS LIMITED
 

Opinion


We have audited the financial statements of G.R.Wright & Sons Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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's affairs as at 31 December 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 United Kingdom, including the Financial Reporting Council'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 or 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.


Page 7

 
G.R.WRIGHT & SONS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF G.R.WRIGHT & SONS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the 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 Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept 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.


Page 8

 
G.R.WRIGHT & SONS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF G.R.WRIGHT & SONS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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.


Page 9

 
G.R.WRIGHT & SONS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF G.R.WRIGHT & SONS LIMITED (CONTINUED)


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 an Auditors' 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 Group 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:

Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities we considered the following:
Obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the group and parent company operates in and how the group and parent company are complying with the legal and regulatory frameworks;
Enquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
Discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
 
All relevant laws and regulations identified at a Group level and areas susceptible to fraud that could have a material effect on the financial statements were communicated. Any instances of non-compliance with laws and regulations identified were considered in our audit approach. The most significant laws and regulations were determined as follows:
UK GAAP FRS 102 and Companies Act;
Tax compliance regulations.

Additional audit procedures performed by the audit engagement team included:
Review of the financial statement disclosures and testing to supporting documentation;
Completion of disclosure checklists to identify areas of non-compliance.

The areas that we identified as being susceptible to material misstatement due to fraud were:
Revenue Recognition;
Management Override
Economic Risk of Stock.

Page 10

 
G.R.WRIGHT & SONS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF G.R.WRIGHT & SONS LIMITED (CONTINUED)


Audit procedures in report to the identified areas above:
Obtaining an understanding of the processes and controls around revenue recognition and stock control;
Substantively testing revenue and stock via various testing including transactional, cut off and sequencing;
Evaluation of the appropriateness of the accounting policies;
Testing the appropriateness of journal entries and other adjustments;
Assessing whether the judgements made in making accounting estimates are indicative of a potential bias;
Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business; and 
Inspection of all recent reports and certification from the relevant bodies and general inspection around the factory.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


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 2006Our 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 Auditors' 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.




Stuart Moon (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Statutory auditor
Chartered Accountants
Leytonstone House
Leytonstone
London
E11 1GA

29 July 2024
Page 11

 
G.R.WRIGHT & SONS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
88,069,326
77,470,544

Cost of sales
  
(71,529,997)
(65,516,550)

Gross profit
  
16,539,329
11,953,994

Distribution costs
  
(4,470,832)
(4,306,060)

Administrative expenses
  
(3,024,798)
(3,106,928)

Other operating income
 5 
38,062
39,430

Operating profit
 6 
9,081,761
4,580,436

Interest receivable and similar income
 10 
297,024
45,277

Interest payable and similar expenses
 11 
(789,497)
(508,731)

Profit before tax
  
8,589,288
4,116,982

Tax on profit
 12 
(2,218,276)
(1,259,798)

Profit for the financial year
  
6,371,012
2,857,184

Other comprehensive income for the year
  

Actuarial gains/(losses) on defined benefit pension scheme
  
(171,000)
786,000

Movement of deferred tax relating to pension deficit
  
42,750
(196,500)

Other comprehensive income for the year
  
(128,250)
589,500

Total comprehensive income for the year
  
6,242,762
3,446,684

Profit for the year attributable to:
  

Owners of the parent company
  
6,371,012
2,857,184

The notes on pages 22 to 47 form part of these financial statements.

Page 12

 
G.R.WRIGHT & SONS LIMITED
REGISTERED NUMBER: 00129755

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
                                                                      Note
£
£

Fixed assets
  

Intangible assets
 13 
11,758
24,758

Tangible assets
 14 
56,803,235
57,410,753

  
56,814,993
57,435,511

Current assets
  

Stocks
 16 
6,176,819
8,192,298

Debtors: amounts falling due within one year
 17 
13,176,777
13,197,807

Cash at bank and in hand
 18 
11,406,939
4,235,503

  
30,760,535
25,625,608

Creditors: amounts falling due within one year
 19 
(9,878,207)
(9,069,485)

Net current assets
  
 
 
20,882,328
 
 
16,556,123

Total assets less current liabilities
  
77,697,321
73,991,634

Creditors: amounts falling due after more than one year
 20 
(8,836,167)
(11,806,565)

Provisions for liabilities
  

Deferred tax
 25 
(3,573,897)
(3,016,574)

Net assets excluding pension asset
  
65,287,257
59,168,495

Pension asset
  
56,000
12,000

Net assets
  
65,343,257
59,180,495


Capital and reserves
  

Called up share capital 
 26 
18,925
18,925

Capital redemption reserve
 27 
13,918
13,918

Profit and loss account
 27 
65,310,414
59,147,652

  
65,343,257
59,180,495


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 July 2024.



D A Wright
Director

The notes on pages 22 to 47 form part of these financial statements.
Page 13

 
G.R.WRIGHT & SONS LIMITED
REGISTERED NUMBER: 00129755
    
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023


Page 14

 
G.R.WRIGHT & SONS LIMITED
REGISTERED NUMBER: 00129755

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
11,758
24,758

Tangible assets
 14 
56,803,235
57,410,753

Investments
 15 
100
100

  
56,815,093
57,435,611

Current assets
  

Stocks
 16 
6,176,819
8,192,298

Debtors: amounts falling due within one year
 17 
12,713,534
13,197,807

Cash at bank and in hand
 18 
11,406,939
4,235,503

  
30,297,292
25,625,608

Creditors: amounts falling due within one year
 19 
(11,515,965)
(13,453,334)

Net current assets
  
 
 
18,781,327
 
 
12,172,274

Total assets less current liabilities
  
75,596,420
69,607,885

  

Creditors: amounts falling due after more than one year
 20 
(8,836,167)
(11,806,565)

Provisions for liabilities
  

Deferred taxation
 25 
(3,573,897)
(3,016,574)

Net assets excluding pension asset
  
63,186,356
54,784,746

Pension asset
  
56,000
12,000

Net assets
  
63,242,356
54,796,746


Capital and reserves
  

Called up share capital 
 26 
18,925
18,925

Capital redemption reserve
 27 
13,918
13,918

Profit and loss account brought forward
  
54,763,903
53,870,572

Profit for the year
  
8,653,860
363,831

Other changes in the profit and loss account

  

(208,250)
529,500

Profit and loss account carried forward
  
63,209,513
54,763,903


Page 15

 
G.R.WRIGHT & SONS LIMITED
REGISTERED NUMBER: 00129755
    
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 July 2024.


D A Wright
Director

The notes on pages 22 to 47 form part of these financial statements.

Page 16

 
G.R.WRIGHT & SONS LIMITED
 

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


Called up share capital
Capital redemption reserve
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£


At 1 January 2022
18,925
13,918
55,760,968
55,793,811
55,793,811


Comprehensive income for the year

Profit for the year
-
-
2,857,184
2,857,184
2,857,184

Actuarial gains on pension scheme
-
-
589,500
589,500
589,500
Total comprehensive income for the year
-
-
3,446,684
3,446,684
3,446,684

Dividends: Equity capital
-
-
(60,000)
(60,000)
(60,000)



At 1 January 2023
18,925
13,918
59,147,652
59,180,495
59,180,495


Comprehensive income for the year

Profit for the year
-
-
6,371,012
6,371,012
6,371,012

Actuarial losses on pension scheme
-
-
(128,250)
(128,250)
(128,250)
Total comprehensive income for the year
-
-
6,242,762
6,242,762
6,242,762

Dividends: Equity capital
-
-
(80,000)
(80,000)
(80,000)


At 31 December 2023
18,925
13,918
65,310,414
65,343,257
65,343,257


The notes on pages 22 to 47 form part of these financial statements.

Page 17

 
G.R.WRIGHT & SONS LIMITED
 

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


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
18,925
13,918
53,870,572
53,903,415



Profit for the year
-
-
363,831
363,831

Actuarial gains on pension scheme
-
-
589,500
589,500
Total comprehensive income for the year
-
-
953,331
953,331

Dividends: Equity capital
-
-
(60,000)
(60,000)



At 1 January 2023
18,925
13,918
54,763,903
54,796,746


Comprehensive income for the year

Profit for the year
-
-
8,653,860
8,653,860

Actuarial losses on pension scheme
-
-
(128,250)
(128,250)
Total comprehensive income for the year
-
-
8,525,610
8,525,610

Dividends: Equity capital
-
-
(80,000)
(80,000)


At 31 December 2023
18,925
13,918
63,209,513
63,242,356


The notes on pages 22 to 47 form part of these financial statements.

Page 18

 
G.R.WRIGHT & SONS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
6,371,012
2,857,184

Adjustments for:

Amortisation of intangible assets
13,000
13,000

Depreciation of tangible assets
2,076,483
2,060,740

Loss on disposal of tangible assets
(9,944)
(44,500)

Interest paid
789,497
508,731

Interest received
(297,024)
(45,277)

Taxation charge
2,218,276
1,259,798

Decrease/(increase) in stocks
2,015,479
(2,168,321)

Decrease/(increase) in debtors
206,559
(1,762,234)

Increase in creditors
429,060
71,488

(Decrease) in net pension assets/liabs
(215,000)
(194,000)

Corporation tax (paid)
(898,997)
(243,438)

Net cash generated from operating activities

12,698,401
2,313,171


Cash flows from investing activities

Purchase of tangible fixed assets
(1,473,021)
(1,255,810)

Sale of tangible fixed assets
14,000
44,500

Interest received
297,024
45,277

HP interest paid
(25,994)
(4,858)

Net cash from investing activities

(1,187,991)
(1,170,891)

Cash flows from financing activities

Repayment of loans
(3,350,000)
(1,800,000)

Repayment of finance leases
(145,471)
246,329

Dividends paid
(80,000)
(60,000)

Interest paid
(763,503)
(503,873)

Net cash used in financing activities
(4,338,974)
(2,117,544)

Net increase/(decrease) in cash and cash equivalents
7,171,436
(975,264)
Page 19

 
G.R.WRIGHT & SONS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Cash and cash equivalents at beginning of year
4,235,503
5,210,767

Cash and cash equivalents at the end of year
11,406,939
4,235,503


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
11,406,939
4,235,503


The notes on pages 22 to 47 form part of these financial statements.

Page 20

 
G.R.WRIGHT & SONS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023





At 1 January 2023
Cash flows
New finance leases
At 31 December 2023
£

£

£

£

Cash at bank and in hand

4,235,503

7,171,436

-

11,406,939

Debt due after 1 year

(11,550,000)

3,350,000

-

(8,200,000)

Debt due within 1 year

(1,800,000)

-

-

(1,800,000)

Finance leases

(343,717)

145,471

(648,080)

(846,326)


(9,458,214)
10,666,907
(648,080)
560,613

The notes on pages 22 to 47 form part of these financial statements.

Page 21

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

G.R.Wright & Sons Limited ("the Company") is a private company limited by shares, incorporated in England and Wales. The Company's registered office is Harlow Mill The Pinnacles, Roydon Road, Harlow, Essex, England, CM19 5GH.
The principal activity of the Company is milling of flour and associated activities.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The Company's business activities, together with the factors likely to affect its future development, performance and position, are set out in the strategic report. The strategic report further describes the financial position of the Company, its management of working capital and its exposure to credit risk.
The Company uses a bank loan facility to fund its capital investments. The Company prepares and reviews its financial forecast and projections regularly and these indicate that the Company will be able to operate within the covenants of this facility in relation to cashflow cover, loan to value of security and leverage. 
The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and meet its capital commitments and other liabilities as for at least 12 months from the date of approval of the financial statements. Accordingly we continue to adopt the going concern basis in preparing the financial statements.

Page 22

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Patents & trademarks
-
Over 5 years

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Land and building freehold
-
Over 50 years (on building element)
Plant and machinery
-
Over 4 to 30 years
Fixtures, fittings and equipment
-
Over 4 to 12 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 23

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.7

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.8

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Statement of financial position when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

Page 24

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.8
Financial instruments (continued)

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

From time to time, the Company enters into wheat purchase contracts to manage its exposure to wheat price volatility. Under FRS 102, these are not classified as financial instruments as the contracts are for delivery of the commodity that the Company uses for its primary production purpose. The contracts are obligations rather than options and the contracts cannot be settled in cash. The Company has applied the own use exemption in FRS 102 paragraph 12.5. 

Page 25

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.10

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

  
2.11

Share capital

Ordinary shares are classified as equity. Incremented costs directly attributable to the issue of new ordinary shares are shown in equity as a deduction, net of tax, from the proceeds.

Page 26

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

Defined benefit pension plan

The Group operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The liability recognised in the Statement of financial position in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the reporting date less the fair value of plan assets at the reporting date (if any) out of which the obligations are to be settled.

The defined benefit obligation is calculated using the projected unit credit method. Annually the Company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').

The fair value of plan assets is measured in accordance with the FRS102 fair value hierarchy and in accordance with the Group's policy for similarly held assets. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.

The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:

a) the increase in net pension benefit liability arising from employee service during the period; and

b) the cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.

Page 27

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.

 
2.14

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.15

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.17

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 28

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.18

Operating leases: the Group as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

 
2.19

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.20

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.21

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 29

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates. Items in the financial statements where these judgements and estimates have been made include:
(i) Defined benefit pension scheme
The measurement of obligations under defined benefit pension scheme arrangements is subject to a number of highly sensitive assumptions, details of which are given in note 29. Scheme liabilities are measured on an actuarial basis using the projected unit method and are discounted at appropriate high quality corporate bond rates. The net surplus or deficit, adjusted for deferred tax, is presented separately from other net assets on the balance sheet. 
(ii) Deferred tax
The Company is subject to UK corporation tax and judgement is required in determining the provision for corporation and deferred taxation. The Company recognises taxation assets and liabilities based upon estimates and assessments of many factors including judgements about the outcome of future events. Deferred tax assets are only 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.
(iii) Wheat purchase commitments  
From time to time, the Company enters into wheat purchase contracts to manage its exposure to wheat price volatility. Under FRS 102, these are not classified as financial instruments as the contracts are for delivery of the commodity that the Company uses for its primary production purpose. The contracts are obligations rather than options and the contracts cannot be settled in cash. The Company has applied the own use exemption in FRS 102 paragraph 12.5. 


4.


Turnover

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
87,543,222
76,781,339

Rest of Europe
526,104
689,205

88,069,326
77,470,544


The whole of the turnover is attributable to the sale of milled flours and a range of speciality cake and bread mixes.

Page 30

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Other operating income

2023
2022
£
£

Rental income
38,062
39,430



6.


Operating profit

The operating profit is stated after charging/(crediting):

2023
2022
£
£

Depreciation of tangible fixed assets
2,076,483
2,060,740

Amortisation of intangible assets
13,000
13,000

Directors remuneration
603,832
623,151

Foreign exchange loss/(profit
3,227
(9,113)

Other operating lease rentals for plant and machinery
264,378
268,943

Profit on disposal of fixed assets
(9,944)
(44,500)


7.


Auditors' remuneration

2023
2022
£
£

Fees payable to the Group's auditor and its associates for the audit of the Group's annual financial statements
27,000
25,000

Fees payable to the Group's auditor and its associates in respect of:

Taxation compliance services
5,500
5,500

All other services
9,000
4,000

Page 31

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
5,178,708
5,048,052
5,178,708
5,048,052

Social security costs
533,606
528,293
533,606
528,294

Other pension costs
240,549
246,501
240,549
246,501

5,952,863
5,822,846
5,952,863
5,822,847

The average monthly number of employees, including the directors, during the year was as follows:


2023
2022
£
£


Administration
15
13

Production
84
83

Sales and distribution
35
37

134
133


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
568,925
588,788

Group contributions to defined contribution pension schemes
34,907
34,362

603,832
623,150


During the year retirement benefits were accruing to 4 directors (2022 - 4) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £176,639 (2022 - £179,509).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2022 - £NIL).

Page 32

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Interest receivable and similar income

2023
2022
£
£


Net interest on net defined benefit liability
5,000
-

Other interest receivable
292,024
45,277

297,024
45,277


11.


Interest payable and similar charges

2023
2022
£
£


Bank interest payable
763,503
480,516

Net interest on net defined benefit liability
-
16,000

Finance leases and hire purchase contracts
25,994
4,858

Other interest payable
-
7,357

789,497
508,731


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
1,618,203
255,822


Deferred tax


Origination and reversal of timing differences
600,073
1,003,976


Taxation on profit on ordinary activities
2,218,276
1,259,798
Page 33

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
8,589,288
4,116,982


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
2,147,322
782,227

Effects of:


Expenses not deductible for tax purposes
71,764
236,019

Short term timing difference leading to an increase (decrease) in taxation
100,976
241,552

Effect of changes in tax rates
(101,786)
-

Total tax charge for the year
2,218,276
1,259,798


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 34

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Intangible assets

Group and Company





Patents and trademarks

£



Cost


At 1 January 2023
65,000



At 31 December 2023

65,000



Amortisation


At 1 January 2023
40,242


Charge for the year on owned assets
13,000



At 31 December 2023

53,242



Net book value



At 31 December 2023
11,758



At 31 December 2022
24,758



Page 35

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Tangible fixed assets

Group and Company






Freehold land and buildings
Plant and machinery
Fixtures, fittings and equipment
Total

£
£
£
£



Cost


At 1 January 2023
19,545,841
58,603,776
1,503,908
79,653,525


Additions
443,288
842,978
186,755
1,473,021


Disposals
-
(171,603)
(4,532)
(176,135)



At 31 December 2023

19,989,129
59,275,151
1,686,131
80,950,411



Depreciation


At 1 January 2023
2,825,160
18,329,453
1,088,159
22,242,772


Charge for the year on owned assets
603,701
1,249,171
141,708
1,994,580


Charge for the year on financed assets
-
81,903
-
81,903


Disposals
-
(171,360)
(719)
(172,079)



At 31 December 2023

3,428,861
19,489,167
1,229,148
24,147,176



Net book value



At 31 December 2023
16,560,268
39,785,984
456,983
56,803,235



At 31 December 2022
16,720,681
40,274,323
415,749
57,410,753

Page 36

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           14.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Motor vehicles (included in plant and machinery)
954,344
108,248


15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
100



At 31 December 2023
100





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Wright's Milling Limited
Harlow Mill The Pinnacles, Roydon Road, Harlow, United Kingdom, CM19 5GH
Ordinary
100%

Page 37

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Raw materials and consumables
4,627,158
6,302,205
4,627,158
6,302,205

Finished goods and goods for resale
1,549,661
1,890,093
1,549,661
1,890,093

6,176,819
8,192,298
6,176,819
8,192,298


The difference between purchase price or production cost of stocks and their replacement cost is not material.


17.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
11,074,271
11,908,349
11,074,271
11,908,349

Other debtors
1,160,730
715,974
697,487
715,974

Prepayments and accrued income
941,776
573,484
941,776
573,484

13,176,777
13,197,807
12,713,534
13,197,807



18.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
11,406,939
4,235,503
11,406,939
4,235,503


Page 38

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
1,800,000
1,800,000
1,800,000
1,800,000

Trade creditors
5,124,066
5,730,380
5,124,066
5,730,380

Amounts owed to group undertakings
-
-
1,637,758
4,639,671

Corporation tax
1,160,557
255,822
1,160,557
-

Other taxation and social security
144,835
130,320
144,835
130,320

Obligations under finance lease and hire purchase contracts
210,159
87,152
210,159
87,152

Other creditors
17,251
662
17,251
662

Accruals and deferred income
1,421,339
1,065,149
1,421,339
1,065,149

9,878,207
9,069,485
11,515,965
13,453,334



20.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
8,200,000
11,550,000
8,200,000
11,550,000

Net obligations under finance leases and hire purchase contracts
636,167
256,565
636,167
256,565

8,836,167
11,806,565
8,836,167
11,806,565




Page 39

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Bank loans
1,800,000
1,800,000
1,800,000
1,800,000

Amounts falling due 1-2 years

Bank loans
1,800,000
11,550,000
1,800,000
11,550,000

Amounts falling due 2-5 years

Bank loans
5,400,000
-
5,400,000
-

Amounts falling due after more than 5 years

Bank loans
1,000,000
-
1,000,000
-

10,000,000
13,350,000
10,000,000
13,350,000


The loan is secured over the assets of the business.
The fixed term comes to an end on 4 October 2024. However, the agreement enables the Company to extend this for a further term. The loan amortisation reflects the intention of the board to extend this facility.


22.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
210,159
87,151

Between 1-5 years
636,167
256,566

846,326
343,717

Page 40

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets that are debt instruments measured at amortised cost
11,135,678
11,975,895
11,135,678
11,975,895


Financial liabilities

Trade and other creditors measured at undiscounted amount payable
6,562,656
6,796,191
13,693,519
11,435,862

Bank loans and obligations under finance lease measured at amortised cost
10,846,326
13,693,717
10,846,326
13,693,717

4,283,670
6,897,526
(2,847,193)
2,257,855


24.


Financial risk management

The Company has exposure to a number of financial risks including:
Defined benefit pension scheme (note 28)
The Company operates a defined benefit pension scheme for the benefit of employees. A full actuarial valuation of the scheme was carried out on 6 April 2022. There is a risk that, as a result of poor market returns and adverse changes in other valuation assumptions that the scheme deficit will increase. The Company mitigates this risk by agreeing suitable investment policies with scheme trustees and by managing liquidity risk.
As explained in note 29 the scheme is closed to future accruals.
Wheat price exposure
The Company is exposed to wheat price volatility as it is the commodity used for its primary production purpose. This risk is mitigated by entering into wheat purchase contracts to manage its exposure to wheat price volatility. 
Liquidity risk
Liquidity risk is the risk that the Company will be unable to generate or borrow sufficient working capital for its needs. Liquidity risk is managed by short-term and medium-term cash flow forecasts. The Company regularly considers and maintains minimum cash levels that are considered to be prudent for the nature and size of its business. The Company has no current borrowing requirements and therefore has no borrowing facilities.

Page 41

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.


Deferred taxation


Group



2023


£






At beginning of year
(3,016,574)


Movement during the year
(600,073)


Charged to other comprehensive income
42,750



At end of year
(3,573,897)

Company


2023


£






At beginning of year
(3,016,574)


Charged to profit or loss
(600,073)


Charged to other comprehensive income
42,750



At end of year
(3,573,897)

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
3,559,897
3,013,574
3,559,897
3,013,574

Deferred tax on defined benefit scheme
14,000
3,000
14,000
3,000

3,573,897
3,016,574
3,573,897
3,016,574

Page 42

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

26.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



16,084 (2022 - 16,084) Ordinary shares shares of £1.00 each
16,084
16,084
2,841 (2022 - 2,841) A ordinary shares shares of £1.00 each
2,841
2,841

18,925

18,925


The Ordinary shares and Ordinary 'A' shares rank pari passu.


27.


Reserves

Capital redemption reserve

A distributable reserve following the redemption of the Company's own shares.

Profit and loss account

Profit and loss account represents all current and prior period comprehensive income as reported in the Statement of comprehensive income, reduced by the amounts of dividends declared. 


28.


Capital commitments


2023
2022
£
£


Contracted for but not provided in these financial statements
803,082
-

Page 43

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

29.


Pension commitments

The Group operates a defined benefit pension scheme, the G.R. Wright & Sons Limited Pension and Assurance Scheme.

The scheme's funds are administered by Trustees which are independent of the Company's finances. Contributions are paid to the scheme in accordance with recommendations of an independent adviser. The amount charged to the Income statement in respect of pension costs and other post retirement benefits is an estimated regular cost of providing the benefits accrued in the year, adjusted to reflect variations from that cost. The net interest cost is included within other finance costs.

A full actuarial valuation was carried out as at 6 April 2022, preliminary results of this were updated to 31 December 2023 by an independent qualified actuary in accordance with FRS 102 Section 28 'Employee Benefits'. 
The most recent actuarial valuation indicated the scheme had a shortfall. It was agreed with the Trustees that the Company will contribute £210,000 per annum to 31 August 2024.



Reconciliation of present value of plan liabilities:


2023
2022
£
£


At the beginning of the year
5,435,000
8,160,000

Interest cost
251,000
147,000

Actuarial gains
279,000
(2,037,000)

Benefits paid
(425,000)
(835,000)

At the end of the year
5,540,000
5,435,000


Composition of plan liabilities:


2023
2022
£
£


Deferred members
1,417,000
1,189,000

Unsecured pensioners
1,610,000
1,517,000

Secured pensioners
2,513,000
2,729,000

Total plan liabilities
5,540,000
5,435,000


Page 44

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
29.Pension commitments (continued)


Reconciliation of present value of plan assets:


2023
2022
£
£


At the beginning of the year
5,447,000
7,192,000

Interest income
256,000
131,000

Actuarial gains
108,000
(1,251,000)

Employer contributions
210,000
210,000

Benefits paid
(425,000)
(835,000)

At the end of the year
5,596,000
5,447,000


Composition of plan assets:


2023
2022
£
£


Equities
2,814,000
2,635,000

Cash and net current assets
269,000
83,000

Annuities
2,513,000
2,729,000

Total plan assets
5,596,000
5,447,000

2023
2022
£
£


Fair value of plan assets
5,596,000
5,447,000

Present value of plan liabilities
(5,540,000)
(5,435,000)

Net pension scheme asset
56,000
12,000


The amounts recognised in profit or loss are as follows:

2023
2022
£
£


Interest (on obligation)/ receivable
5,000
(16,000)




Page 45

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
29.Pension commitments (continued)


Principal actuarial assumptions at the reporting date (expressed as weighted averages):

2023
2022
%
%
Discount rate


4.4

4.8
 
Future pension increases


3.2

3.3
 
Retail price index (RPI)


3.0

3.0
 
Mortality rates



 
Current pensioners at 60 - male (life expectancy (years))


26.2

26.7
 
Current pensioners at 60 - female (life expectancy (years))


28.9

29.2
 
Future pensioners at 40 - male (life expectancy (years))


27.7

28.2
 
Future pensioners at 40 - female (life expectancy (years))


30.4

30.7
 

The post-retirement mortality is based on the mortality tables on the S3PXA published by the Bureau of Continuous Mortality Investigation (CMI). The mortality rates are projected by each member's year of birth in line with the CMI 2022 improvement table, subject to a long term improvement rate of 1.25% p.a. for both males and females.


The actual return on the scheme's invested assets over the year was a profit of £364,000 (2022 - £1,120,000 loss).
Defined contribution scheme
The Company operates a defined contribution scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £362,778 (2022 - £246,501). Contributions totalling £20,371 (2022 - £652) were payable to the fund at the balance sheet date.




Page 46

 
G.R.WRIGHT & SONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

30.


Commitments under operating leases

At 31 December 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
236,285
272,128
236,285
272,128

Later than 1 year and not later than 5 years
318,298
535,129
318,298
535,129

554,583
807,257
554,583
807,257


31.


Related party transactions

At the balance sheet date, amounts of £61,237 (2022 - £66,138) were due from a pension scheme operated by the Company.


32.


Controlling party

The group’s ultimate controlling party is The David Wright Family Settlement Trust. 

 
Page 47