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Registered number: 01554970









WELCH'S GROUP HOLDINGS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
COMPANY INFORMATION


DIRECTORS
Mr A G Welch 
Mr J N Welch 




COMPANY SECRETARY
Mr J N Welch



REGISTERED NUMBER
01554970



REGISTERED OFFICE
Moorfield Road
Duxford

Cambridge

CB22 4PS




INDEPENDENT AUDITOR
Peters Elworthy & Moore
Chartered Accountants & Statutory Auditor

Salisbury House

Station Road

Cambridge

CB1 2LA




BANKERS
Barclays Bank Plc
Abacus House

Castle Park

Castle Hill

Cambridge

CB3 0AN





 
WELCH'S GROUP HOLDINGS LIMITED
 

CONTENTS



Pages
Group Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditor's Report
 
5 - 8
Consolidated Profit and Loss Account
 
9
Consolidated Balance Sheet
 
10 - 11
Company Balance Sheet
 
12
Consolidated Statement of Changes in Equity
 
13
Company Statement of Changes in Equity
 
14
Consolidated Statement of Cash Flows
 
15 - 16
Notes to the Financial Statements
 
17 - 35


 
WELCH'S GROUP HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

INTRODUCTION
 
The Directors present their Strategic Report incorporating the business review, which includes the principal risks and uncertainties of the business and key performance indicators.

BUSINESS REVIEW
 
The Directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. The review is consistent with the size and nature of the business and is written in the context of risks and uncertainties faced.
Group turnover was £15,717,999 (2022 - £16,206,726) with overall operating profit at £1,123,388, an increase from the operating profit of £921,650 the previous year. Profit before tax of £1,172,674 compared to a profit before tax of £934,791 the previous year.
The Group's trading activities continue to be undertaken by Welch’s Transport Ltd.  The significant challenges brought about by the Covid pandemic and war breaking out in Eastern Europe faded during the year, which was much more business as usual albeit overall activity levels were flat. Inflation remained at painfully high levels, although moderating towards the end of the year, whilst interest rates remained well above what has been the norm for the last fifteen years. Against this backdrop storage and distribution operations saw a drop off in performance whilst our motor trade activities showed a significant improvement reflecting the lack of capacity in that market owing to the shortage of qualified technicians.  
Sales and business development activities became much tougher, and price returned as a topic of conversation with customers and prospective customers, many of whom were facing challenges in their own sectors.  Customer service levels, measured by objective KPI’s, remained consistently high all year and were a definite strength of the business. The businesses Traffic Management System, which controls all transport activities, was changed towards the end of the year as was the Warehouse Management System, earlier in the year. Both investments demonstrate the Group’s commitment to improving efficiencies and customer service levels by embracing the latest technologies.  
The business's 65% owned subsidiary, JPS Installs Ltd, had a much quieter year and failed to contribute materially to the consolidated Group’s results.
Conversely, TBM Fulfilment Solution UK Ltd, the Group’s 50% owned e-commerce and fulfilment business, again produced a good financial performance, which benefited the Group’s overall result.
Capital spend on vehicles and trailers was at a more normal level as lead times fell back although the 25/30% price increases seen in recent years showed no signs of being unwound. As a result of this increased pricing, the business has moved to keeping its rigid vehicle fleet, where mileage is limited, and its trailer fleet longer, with a formal refurbishment programme introduced for these assets at mid-life. The business also deployed its first fully electric 19 tonne LGV.
There was a high level of infrastructure investment during the year with the Cambridge site extending their warehouse, workshop and trailer park, boosting capacity, and the Bedford and St Ives depot both having a refresh of their facilities. The Cambridge Truck Centre also had a six-figure investment installing a solar array on its roof. This, and the first fully electric truck, were tangible examples of the business commencing its journey to net zero.
Whilst the Directors are aware that any plans for future development of the business may be subject to unforeseen events outside of their control, to a greater degree than ever currently, they view the coming year with guarded confidence.

Page 1

 
WELCH'S GROUP HOLDINGS LIMITED
 

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

PRINCIPAL RISKS AND UNCERTAINTIES
 
The Company has for many years believed that outright ownership of its asset base and avoiding any form of borrowing is in its best interests and, other than the occasional modest loan for the purchase of property, intends to continue with this policy. As such the Company has little exposure to financial, credit or interest rate risk. The industries that the business operates in can be dangerous, but the Group believes that its systems, processes and general culture limit these risks as far as possible. External consultants support the management team in continually promoting a proactive approach to Health and Safety in all areas of the business. The Company’s Quality and Environmental management system continue to be externally accredited to the ISO 9001 and 14001 standards. The transport depots support the voluntary Freight Operators Recognition Scheme (FORS) with the Cambridge location currently accredited to the silver standard whilst the St Ives depot is accredited to the gold standard..

FINANCIAL KEY PERFORMANCE INDICATORS
 
The directors consider that the key financial performance indicators are those that communicate the financial performance and strength of the Group as a whole, these being turnover, operating profit, cash balances and return on capital employed.

OTHER KEY PERFORMANCE INDICATORS
 
The Directors consider the main other key performance indicators are the delivery performance, compliance, utilisation and productivity of its transport operations, which are monitored daily, and a range of criteria on the motor trade side of the business, which are regularly reviewed by our franchise partners.


This report was approved by the Board of Directors and signed on its behalf.



Mr J N Welch
Director

Date: 2 May 2024

Page 2

 
WELCH'S GROUP HOLDINGS 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.

PRINCIPAL ACTIVITIES

The principal activities of the Group during the year was the provision of transport and motor trade related activities as well as crane hire services and furniture distribution and installation.
The principal activity of the Company was that of an investment holding company.

RESULTS AND DIVIDENDS

The profit for the year, after taxation and minority interests, amounted to £841,863 (2022 - £789,260).

An interim dividend of £6,000 (2022 - £6,000) was paid in the year on the Ordinary B shares.  The Directors do not recommend the payment of a final dividend (2022 - £Nil)

DIRECTORS

The Directors who served during the year and to the date of this report, were:

Mr R N Welch (resigned 5 April 2024)
Mr A G Welch 
Mr J N Welch 

The Group maintains insurance, as permitted by section 233 of the Companies Act 2006, for its Directors against liabilities incurred in relation to the companies within the Group.

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;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company and 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.

Page 3

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

FUTURE DEVELOPMENTS

The Directors intend to continue to grow all areas of the business in the foreseeable future.

DISCLOSURE OF INFORMATION TO AUDITOR

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's auditor is 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's auditor is aware of that information.

POST BALANCE SHEET EVENTS

There have been no significant events affecting the Group since the year end requiring disclosure.

This report was approved by the Board of Directors and signed on its behalf.
 





Mr J N Welch
Director

Date: 2 May 2024

Page 4

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WELCH'S GROUP HOLDINGS LIMITED
 

OPINION


We have audited the financial statements of Welch's Group Holdings Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise of the Consolidated Profit and Loss Account, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity,  the Consolidated Statement of Cash Flows 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 Auditor's 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 5

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WELCH'S GROUP HOLDINGS LIMITED (CONTINUED)


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 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.


RESPONSIBILITIES OF THE DIRECTORS
 

As explained more fully in the Directors' Responsibilities Statement, set out on page 3, 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.


Page 6

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WELCH'S GROUP HOLDINGS LIMITED (CONTINUED)


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.


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 consolidated finanical 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate, competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the Group through discussions with the Directors and other management, and from our knowledge and experience of the sector;
we obtained an understanding of the legal and regulatory framework applicable to the Group and how the Group is complying with that framework;
we obtained an understanding of the Group’s policies and procedures on compliance with laws and regulations, including documentation of any instances of non-compliance;
we identified which laws and regulations were significant in the context of the Group.  The laws and regulations we considered in this context were Companies Act 2006 and taxation legislation. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items;
in addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the Group’s ability to operate or to avoid material penalty; and
ensured laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the Group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

Page 7

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WELCH'S GROUP HOLDINGS LIMITED (CONTINUED)


To address the risk of fraud through management bias and override of controls, we:

tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation; and
enquiring of management as to actual and potential litigation and claims.
 
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the consolidated financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the consolidated financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditor's 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 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.





Adam Smith (Senior Statutory Auditor)
  
for and on behalf of
Peters Elworthy & Moore
 
Chartered Accountants
Statutory Auditor
  
Salisbury House
Station Road
Cambridge
CB1 2LA

3 May 2024
Page 8

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022
Notes
£
£

TURNOVER
  

Group and share of joint ventures' turnover
  
16,248,717
16,687,099

Less: share of joint ventures' turnover
  
(530,718)
(480,373)

GROUP TURNOVER
  
15,717,999
16,206,726

Cost of sales
  
(12,449,473)
(12,752,302)

GROSS PROFIT
  
3,268,526
3,454,424

Administrative expenses
  
(3,226,301)
(2,992,021)

Other operating income
 5 
352,163
459,247

Fair value movements
 18 
729,000
-

OPERATING PROFIT
 6 
1,123,388
921,650

Share of profit of joint ventures
  
18,816
21,458

TOTAL OPERATING PROFIT
  
1,142,204
943,108

Income from other fixed asset investments
 10 
2,781
-

Interest receivable and similar income
 11 
54,086
31,037

Interest payable and similar expenses
 12 
(26,397)
(39,354)

PROFIT BEFORE TAX
  
1,172,674
934,791

Tax on profit
 13 
(342,049)
(124,437)

PROFIT FOR THE FINANCIAL YEAR
  
830,625
810,354

PROFIT FOR THE YEAR ATTRIBUTABLE TO:
  

Non-controlling interests
  
(11,238)
21,094

Owners of the Parent Company
  
841,863
789,260

  
830,625
810,354

There are no items of Other Comprehensive Income for 2023 or 2022 other than the profit for the yearAs a result, no separate Statement of Comprehensive Income has been presented.

The notes on pages 17 to 35 form part of these financial statements.

Page 9

 
WELCH'S GROUP HOLDINGS LIMITED
REGISTERED NUMBER: 01554970

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2023
2022
2022
Notes
£
£
£
£

FIXED ASSETS
  

Tangible assets
 16 
13,445,952
12,983,897

Investments
 17 
429,022
329,111

Investment property
 18 
3,254,000
2,525,000

  
17,128,974
15,838,008

CURRENT ASSETS
  

Stocks
 19 
312,053
280,927

Debtors: amounts falling due within one year
 20 
2,432,068
2,595,719

Cash at bank and in hand
 21 
2,668,193
4,162,602

  
5,412,314
7,039,248

Creditors: amounts falling due within one year
 22 
(1,789,275)
(2,506,168)

NET CURRENT ASSETS
  
 
 
3,623,039
 
 
4,533,080

TOTAL ASSETS LESS CURRENT LIABILITIES
  
20,752,013
20,371,088

Creditors: amounts falling due after more than one year
 23 
-
(762,351)

PROVISION FOR LIABILITIES
  

Deferred taxation
 25 
(2,206,677)
(1,893,026)

NET ASSETS
  
18,545,336
17,715,711


CAPITAL AND RESERVES
  

Called up share capital 
 26 
16,221
16,221

Share premium account
 27 
487,751
487,751

Capital redemption reserve
 27 
500
500

Profit and loss account
 27 
17,986,003
17,151,485

EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY
  
18,490,475
17,655,957

Non-controlling interests
  
54,861
59,754

TOTAL EQUITY
  
18,545,336
17,715,711


Page 10

 
WELCH'S GROUP HOLDINGS LIMITED
REGISTERED NUMBER: 01554970
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

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




Mr J N Welch
Director

Date: 2 May 2024

The notes on pages 17 to 35 form part of these financial statements.

Page 11

 
WELCH'S GROUP HOLDINGS LIMITED
REGISTERED NUMBER: 01554970

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2023
2022
2022
Notes
£
£
£
£

FIXED ASSETS
  

Tangible assets
 16 
12,813,897
12,623,488

Investments
 17 
1,189,001
1,189,001

Investment Property
 18 
3,254,000
2,525,000

  
17,256,898
16,337,489

CURRENT ASSETS
  

Debtors: amounts falling due within one year
 20 
62,939
50,820

Cash at bank and in hand
 21 
1,628,311
2,835,993

  
1,691,250
2,886,813

Creditors: amounts falling due within one year
 22 
(279,847)
(872,857)

NET CURRENT ASSETS
  
 
 
1,411,403
 
 
2,013,956

TOTAL ASSETS LESS CURRENT LIABILITIES
  
18,668,301
18,351,445

  

Creditors: amounts falling due after more than one year
 23 
-
(762,351)

PROVISION FOR LIABILITIES
  

Deferred taxation
 25 
(2,065,261)
(1,819,982)

NET ASSETS
  
16,603,040
15,769,112


CAPITAL AND RESERVES
  

Called up share capital 
 26 
16,221
16,221

Share premium account
 27 
487,751
487,751

Capital redemption reserve
 27 
500
500

Profit and loss account
 27 
16,098,568
15,264,640

SHAREHOLDERS' FUNDS
  
16,603,040
15,769,112


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


Mr J N Welch
Director

Date: 2 May 2024

The notes on pages 17 to 35 form part of these financial statements.

Page 12

 

 
WELCH'S GROUP HOLDINGS LIMITED


 

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



Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Equity attributable to owners of Parent Company
Non-controlling interests
Total equity


£
£
£
£
£
£
£



At 1 JANUARY 2022
16,221
487,751
500
16,368,225
16,872,697
38,660
16,911,357



COMPREHENSIVE INCOME FOR THE YEAR


Profit for the year
-
-
-
789,260
789,260
21,094
810,354



CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS


Dividends paid
-
-
-
(6,000)
(6,000)
-
(6,000)





At 1 JANUARY 2023
16,221
487,751
500
17,151,485
17,655,957
59,754
17,715,711



COMPREHENSIVE INCOME FOR THE YEAR


Profit for the year
-
-
-
841,863
841,863
(11,238)
830,625



CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS


Dividends paid
-
-
-
(6,000)
(6,000)
-
(6,000)


Part disposal of subsidiary
-
-
-
(1,345)
(1,345)
6,345
5,000



AT 31 DECEMBER 2023
16,221
487,751
500
17,986,003
18,490,475
54,861
18,545,336



The notes on pages 17 to 35 form part of these financial statements.

Page 13

 

 
WELCH'S GROUP HOLDINGS LIMITED


 

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



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


£
£
£
£
£



At 1 JANUARY 2022
16,221
487,751
500
14,682,342
15,186,814



COMPREHENSIVE INCOME FOR THE YEAR


Profit for the year
-
-
-
588,298
588,298



CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS


Dividends paid
-
-
-
(6,000)
(6,000)





At 1 JANUARY 2023
16,221
487,751
500
15,264,640
15,769,112





Profit for the year
-
-
-
839,928
839,928



CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS


Dividends paid
-
-
-
(6,000)
(6,000)



AT 31 DECEMBER 2023
16,221
487,751
500
16,098,568
16,603,040



The notes on pages 17 to 35 form part of these financial statements.

Page 14

 
WELCH'S GROUP HOLDINGS 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
830,625
810,354

ADJUSTMENTS FOR:

Depreciation of tangible fixed assets
1,295,449
1,089,383

(Profit) on disposal of tangible assets
(60,025)
(26,769)

Interest payable and similar expenses
26,397
39,354

Interest receiveable and similar income
(56,867)
(31,037)

Taxation charge
342,049
124,437

(Increase) in stocks
(31,126)
(19,490)

Decrease/(increase) in debtors
119,124
(75,347)

Decrease/(increase) in amounts owed by joint ventures
49,156
(112,885)

(Decrease)/increase in creditors
(332,551)
236,212

Fair value (gains) recognised in Profit and Loss
(729,000)
-

Share of operating (profit) in joint venture
(18,816)
(21,458)

Corporation tax (paid)
(96,544)
(14,735)

NET CASH GENERATED FROM OPERATING ACTIVITIES

1,337,871
1,998,019


CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of tangible fixed assets
(1,771,632)
(1,799,157)

Proceeds from disposal of tangible fixed assets
74,153
48,227

Purchase of shares in unlisted investment
(84,758)
-

Proceeds from part disposal of subsidiary
5,000
-

Purchase of share in joint venture
-
(50)

Interest received
54,086
31,037

HP interest paid
-
(470)

Dividends received
2,781
-

NET CASH FROM INVESTING ACTIVITIES

(1,720,370)
(1,720,413)
Page 15

 
WELCH'S GROUP HOLDINGS LIMITED
 

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


2023
2022

£
£



CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of loans
(818,200)
(117,888)

Repayment of other loans
(261,313)
(254,692)

Repayment of finance leases
-
(47,290)

Dividends paid
(6,000)
(6,000)

Interest paid
(26,397)
(38,884)

NET CASH USED IN FINANCING ACTIVITIES
(1,111,910)
(464,754)

(DECREASE) IN CASH AND CASH EQUIVALENTS
(1,494,409)
(187,148)

Cash and cash equivalents at beginning of year
4,162,602
4,349,750

CASH AND CASH EQUIVALENTS AT THE END OF YEAR
2,668,193
4,162,602


CASH AND CASH EQUIVALENTS AT THE END OF YEAR COMPRISE:

Cash at bank and in hand
2,668,193
4,162,602


Page 16

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


GENERAL INFORMATION

Welch's Group Holdings Limited (the "Company") is a private company limited by shares and incorporated in England and Wales. Its registered office is Moorfield Road, Duxford, Cambridge, CB22 4PS.
The Group's presentational currency is Sterling.  The Company's functional and presentational currency is Sterling.

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 Profit and Loss Account 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 Balance Sheet, 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 Profit and Loss Account from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

GOING CONCERN

Whilst the impact of COVID-19 and the war in Europe have fallen away, the UK economy remains in a fragile state. Global supply issues keep re-surfacing and the prices of many goods and services remain elevated. The Directors continually monitor this situation, assessing the impact that a period of interrupted trading would bring, planning measures to reduce the Group's cost base if there was a significant reduction in revenues and sourcing alternative suppliers where needed. Accordingly the directors continue to adopt the going concern basis of accounting in preparing these financial statements.

 
2.4

TURNOVER

Turnover comprises revenue recognised by the Group for goods and services supplied during the year in respect of transport, motor trade, crane hire and office furniture supply and installation activities, exclusive of Value Added Tax and trade discounts. Turnover is recognised as the fair value of the consideration received or receivable and is recognised when the goods have been transported or the services supplied.

Page 17

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.5

GOVERNMENT GRANTS

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated Profit and Loss Account in the same period as the related expenditure.

 
2.6

DEFINED CONTRIBUTION PENSION SCHEMES

The Group operates defined contribution pension schemes for its employees. A defined contribution pension scheme is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.7

INTEREST INCOME

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

 
2.8

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 balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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 balance sheet date

Page 18

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.9

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as detailed below.

Depreciation is provided on the following basis:

Freehold property
-
2% straight line
Plant and machinery
-
10%/33% straight line
Motor vehicles and cranes
-
1% - 3% monthly reducing balance
Office equipment
-
33% straight line

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.

 
2.10

INVESTMENT PROPERTIES

Investment properties are carried at fair value determined by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.11

INVESTMENTS

The Company's investments in its subsidiary undertakings are measured at cost less accumulated impairment charges.
Investments held in unlisted shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the year. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment charges.

 
2.12

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 weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet 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.

Page 19

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.13

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.15

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.16

FOREIGN CURRENCY TRANSLATION

Functional and presentation currency

The Company's functional and presentational currency is Sterling.

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.

 
2.17

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 

Page 20

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.18

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

 
2.19

JOINT VENTURE

An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control.
In the consolidated accounts, interests in joint ventures are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the joint venture. The Consolidated Profit and Loss Account includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Balance Sheet, the interests in joint ventures are shown as the Group's share of the identifiable net assets.


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. The items in the financial statements where these judgements and estimates have been made include:
Investment valuation
At 31 December 2023, the Group holds an investment in an unlisted Company.  The Group recognises the investment at fair value in the balance sheet as the Directors believe that this can be estimated with reasonable certainty.  The fair value is estimated using a net assets valuation method as laid out in the articles of association of that company. Management review this valuation method at each year end for reasonableness and therefore considers the carrying value of the investment.
Investment property valuations
Investment properties are recognised at fair value in the accounts.  External valuers are used periodically to obtain formal valuations of the properties and at each year end management consider the carrying values and judge whether there has been a material change based on market conditions. 
Stock
Stock provisions are recognised for slow moving and obsolete stock and are reviewed on a monthly basis.  Management review all old and slow moving items and consider whether a provision is required.

Page 21

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


TURNOVER

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Road haulage and warehousing
12,520,084
13,389,872

Garage activities
1,982,104
1,593,272

Crane hire
197,985
125,019

Office furniture sales and installation
1,017,826
1,098,563

15,717,999
16,206,726


All turnover arose within the United Kingdom.


5.


OTHER OPERATING INCOME

2023
2022
£
£

Net rents receivable
352,163
319,633

Government grants receivable
-
139,614

352,163
459,247


Government grants receivable represents amounts receivable under the business rates relief scheme of £Nil (2022 - £139,614).


6.


OPERATING PROFIT

The operating profit is stated after charging:

2023
2022
£
£

Net foreign exchange losses
-
8

Depreciation of tangible fixed assets
1,295,449
1,089,382

(Profit) on disposal of tangible fixed assets
(60,025)
(26,769)

Page 22

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


AUDITOR'S REMUNERATION

During the year, the Group obtained the following services from the Company's auditor:


2023
2022
£
£

Fees payable to the Company's auditor for the audit of the consolidated and Parent Company's financial statements
28,300
26,300


Fees payable to the Group's auditor in respect of other services relating to taxation amounted to £2,800 (2022 - £2,600).





8.


EMPLOYEES

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


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


Wages and salaries
5,601,927
5,342,318
140,500
205,505

Social security costs
582,370
557,449
20,180
28,060

Cost of defined contribution pension scheme
153,256
145,297
-
-

6,337,553
6,045,064
160,680
233,565


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



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Office and management
40
38
3
3



Drivers, fitters and salesmen
109
111
-
-

149
149
3
3

Page 23

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


DIRECTORS' REMUNERATION

2023
2022
£
£

Directors' emoluments
160,237
223,634


During the year retirement benefits were accruing to none of the Directors (2022 - NIL) in respect of the defined contribution pension scheme.

The highest paid Director received remuneration of £64,856 (2022 - £131,367).


10.


INCOME FROM INVESTMENTS

2023
2022
£
£





Dividends received from unlisted investment
2,781
-



11.


INTEREST RECEIVABLE AND SIMILAR INCOME

2023
2022
£
£


Bank interest receivable
54,086
31,037

54,086
31,037


12.


INTEREST PAYABLE AND SIMILAR EXPENSES

2023
2022
£
£


Bank loan interest payable
20,317
26,905

Other loan interest payable
5,357
11,979

Finance leases and hire purchase contracts
-
470

Interest payable on Corporation Tax
723
-

26,397
39,354

Page 24

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


TAXATION


2023
2022
£
£

CURRENT TAX


UK Corporation Tax on profit for the year
29,364
79,748

Adjustments in respect of prior years
(4,629)
16,796


Joint venture taxation
3,663
4,077

TOTAL CURRENT TAX
28,398
100,621

DEFERRED TAX


Origination and reversal of timing differences
66,342
140,688

Capital gains
247,309
(116,872)

TOTAL DEFERRED TAX
313,651
23,816


TAXATION ON PROFIT ON ORDINARY ACTIVITIES
342,049
124,437

FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is higher than (2022 - lower than) the standard rate of Corporation Tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,172,674
934,791


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
275,813
177,610

EFFECTS OF:


Expenses not deductible for tax purposes
67,301
(63,710)

Adjustments in respect of prior years
(4,629)
10,537

Non taxable income
(654)
-

Unrelieved tax losses carried forward
4,218
-

TOTAL TAX CHARGE FOR THE YEAR
342,049
124,437

Page 25

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
13.TAXATION (CONTINUED)


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There are no factors that may affect the future tax charge.


14.


DIVIDENDS

2023
2022
£
£


Dividends paid on Ordinary B shares
6,000
6,000


15.


PARENT COMPANY PROFIT FOR THE YEAR

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements. The profit after tax of the parent Company for the year was £839,928 (2022 - £588,298).

Page 26

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


TANGIBLE FIXED ASSETS

Group






Freehold property
Plant and machinery
Motor vehicles and cranes
Office equipment
Total

£
£
£
£
£



COST OR VALUATION


At 1 January 2023
10,769,589
759,664
9,953,512
286,457
21,769,222


Additions
176,421
182,522
1,387,153
25,536
1,771,632


Disposals
-
-
(482,568)
-
(482,568)



At 31 December 2023

10,946,010
942,186
10,858,097
311,993
23,058,286



DEPRECIATION


At 1 January 2023
1,101,504
517,820
6,931,749
234,252
8,785,325


Charge for the year on owned assets
160,520
109,139
993,408
32,382
1,295,449


Disposals
-
-
(468,440)
-
(468,440)



At 31 December 2023

1,262,024
626,959
7,456,717
266,634
9,612,334



NET BOOK VALUE



At 31 December 2023
9,683,986
315,227
3,401,380
45,359
13,445,952



At 31 December 2022
9,668,085
241,844
3,021,763
52,205
12,983,897

Page 27

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           16.TANGIBLE FIXED ASSETS (CONTINUED)


Company






Freehold property
Motor vehicles
Other fixed assets
Total

£
£
£
£

COST OR VALUATION


At 1 January 2023
10,769,589
7,364,897
1,188,051
19,322,537


Additions
176,421
708,525
405,068
1,290,014


Disposals
-
(482,568)
-
(482,568)



At 31 December 2023

10,946,010
7,590,854
1,593,119
20,129,983



DEPRECIATION


At 1 January 2023
1,101,504
4,772,556
824,989
6,699,049


Charge for the year on owned assets
160,520
836,017
88,940
1,085,477


Disposals
-
(468,440)
-
(468,440)



At 31 December 2023

1,262,024
5,140,133
913,929
7,316,086



NET BOOK VALUE



At 31 December 2023
9,683,986
2,450,721
679,190
12,813,897



At 31 December 2022
9,668,085
2,592,341
363,062
12,623,488

Included in freehold property is land with a cost of £2,920,022 (2022 - £2,920,022) which is not depreciated.
The historic cost of the freehold property included in the above valuation is £7,951,812 (2021 - £7,755,267) and the accumulated depreciation thereon is £1,269,773 (2022 - £1,110,737).






Page 28

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


FIXED ASSET INVESTMENTS

Group





Unlisted investments
Investment in joint ventures
Total

£
£
£



COST AND NET BOOK VALUE


At 1 January 2023
311,680
17,431
329,111


Additions
84,758
-
84,758


Share of profit
-
15,153
15,153



At 31 December 2023
396,438
32,584
429,022




Company





Investment in subsidiary undertaking

£



COST AND NET BOOK VALUE


At 1 January 2023
1,189,001



At 31 December 2023
1,189,001





SUBSIDIARY UNDERTAKINGS


As at 31 December 2023 the following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Welch's Transport Limited
Ordinary
100%
JPS Installs Limited
Ordinary
65%
Welch Group Garages Limited
Ordinary
100%
Welch's Crane Hire Limited
Ordinary
100%

During the year, the subsidiary Welch's Transport Limited sold 500 Ordinary shares of £1 each of its investment in JPS Installs Limited for a consideration of £5,000, resulting in the shareholding reducing from 70% to 65%.

Page 29

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

JOINT VENTURE


As at 31 December 2023 the following was a joint venture of the subsidiary Welch's Transport Limited:


Name

Registered office

Holding

TBM Fulfillment Solution UK Ltd
Moorfiled Road, Duxford, Cambridge, CB22 4PS
50%


18.


INVESTMENT PROPERTY

Group and Company


Investment property

£



VALUATION


At 1 January 2023
2,525,000


Revaluation
729,000



AT 31 DECEMBER 2023
3,254,000

The 2023 valuations are based on guidance from Carter Jonas, qualified surveyors, on an open market value for existing use basis.





19.


STOCKS

Group
2023
Group
2022
£
£

Finished goods and goods for resale
312,053
280,927


Page 30

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


DEBTORS

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


Trade debtors
2,110,915
2,210,966
-
-

Amounts owed by fellow group undertakings
-
-
47,038
-

Amounts owed by joint venture
63,729
112,885
-
-

Other debtors
7,370
41,405
-
35,711

Prepayments and accrued income
250,054
230,463
15,901
15,109

2,432,068
2,595,719
62,939
50,820



21.


CASH AND CASH EQUIVALENTS

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

Cash at bank and in hand
2,668,193
4,162,602
1,628,311
2,835,993



22.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

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

Bank loan
-
122,274
-
122,274

Other loan
66,425
261,313
66,425
261,313

Trade creditors
819,884
1,170,187
31,085
118,767

Amounts owed to fellow group undertakings
-
-
14,000
218,620

Corporation tax payable
29,364
96,544
27,210
-

Other taxation and social security
572,033
475,401
75,479
11,810

Other creditors
96,200
86,524
17,500
17,500

Accruals and deferred income
205,369
293,925
48,148
122,573

1,789,275
2,506,168
279,847
872,857


Page 31

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

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

Bank loan
-
695,926
-
695,926

Other loan
-
66,425
-
66,425

-
762,351
-
762,351




24.


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 loan
-
122,274
-
122,274

Other loan
66,425
261,313
66,425
261,313


66,425
383,587
66,425
383,587

AMOUNTS FALLING DUE 1-2 YEARS

Bank loan
-
695,926
-
695,926

Other loan
-
66,425
-
66,425


-
762,351
-
762,351


66,425
1,145,938
66,425
1,145,938


Page 32

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.


DEFERRED TAXATION


Group



2023
2022


£

£






At beginning of year
1,893,026
1,869,210


Charge to profit or loss
313,651
23,816



AT END OF YEAR
2,206,677
1,893,026

Company


2023
2022


£

£






At beginning of year
1,819,982
1,806,023


Charge to profit or loss
245,279
13,959



AT END OF YEAR
2,065,261
1,819,982

The deferred tax liabilty comprises of:

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

Accelerated capital allowances
843,106
726,233
725,248
677,937

Tax losses carried forward
(49,341)
-
(49,341)
-

Other short term timing differences
(1,190)
-
-
-

Capital gains
1,414,102
1,166,793
1,389,354
1,142,045

2,206,677
1,893,026
2,065,261
1,819,982

Page 33

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

26.


SHARE CAPITAL

2023
2022
£
£
ALLOTTED, CALLED UP AND FULLY PAID



14,721 (2022 - 14,721) Ordinary A shares of £1 each
14,721
14,721
1,500 (2022 - 1,500) Ordinary B shares of £1 each
1,500
1,500

16,221

16,221

The Oridnary A shares have full rights.  The Ordinary B shares have no voting rights attached to them therefore have no right to receive notices of any general meetings, nor the right to attend at such general meetings. 



27.


RESERVES

Share premium account

Includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from the share premium

Capital redemption reserve

Includes the nominal value of shares repurchased by the company.

Profit and loss account

Includes all current and prior year retained profit and losses. The consolidated profit and loss account balance of £17,986,003 (2022 - £17,151,485) includes £2,894,973 (2022 - £2,413,282) that is not distributable. The Company balance of £16,098,568 (2022 - £15,264,640) includes £1,382,655 (2022 - £806,984) that is not distributable.


28.


CAPITAL COMMITMENTS




At 31 December 2023 the Group and Company had capital commitments as follows:


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

Contracted for but not provided in these financial statements
953,000
830,000
953,000
830,000

953,000
830,000
953,000
830,000

Page 34

 
WELCH'S GROUP HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

29.


PENSION COMMITMENTS

The Group's pension obligations are covered by two defined contribution schemes. The assets of the schemes are held separately from those of the group in independently administered funds. Contributions payable to the schemes by the group during the year amounted to £153,256 (2022 - £145,297). Contributions amounting to £28,445 (2022 - £21,588) were payable at the balance sheet date and are included in other creditors


30.


RELATED PARTY TRANSACTIONS

The Group has traded on commercial terms with its 65% owned subsidiary. Sales/recharges amounted to £181,858 (2022 - £171,119).  At the year end £34,814 (2022 - £56,829) was owed to the Group.
 
The Group has traded on commercial terms with its joint venture during the year. Sales/recharges amounted to £254,767 (2022 - £201,288).  At the year end £63,729 (2022 - £112,885) was owed to the Group.
 
All other related party transactions have taken place between wholly owned members of the Group, therefore these transactions are not disclosed under the exemption provided by paragraph 33.1A of FRS102.


31.


CONTROLLING PARTY

The shares of the holding company are owned by several members of the Welch family, none of whom have control of the Company by virtue of the number of shares held.

32.


ANALYSIS OF NET DEBT




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

4,162,602

(1,494,409)

2,668,193

Debt due after 1 year

(762,351)

762,351

-

Debt due within 1 year

(383,587)

317,162

(66,425)



3,016,664
(414,896)
2,601,768

 
Page 35