Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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G.R.WRIGHT & SONS LIMITED
COMPANY INFORMATION
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G.R.WRIGHT & SONS LIMITED
CONTENTS
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G.R.WRIGHT & SONS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present the Strategic report and financial statements for the year ended 31 December 2023.
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.
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.
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.
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.
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G.R.WRIGHT & SONS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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.
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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.
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.
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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.
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.
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 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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.
The directors who served during the year were:
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.
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G.R.WRIGHT & SONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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.
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.
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G.R.WRIGHT & SONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
There have been no significant events affecting the Company since the year end.
The auditors, Barnes Roffe LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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G.R.WRIGHT & SONS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF G.R.WRIGHT & SONS LIMITED
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 policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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.
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.
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G.R.WRIGHT & SONS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF G.R.WRIGHT & SONS LIMITED (CONTINUED)
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 Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.
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.
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.
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G.R.WRIGHT & SONS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF G.R.WRIGHT & SONS LIMITED (CONTINUED)
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G.R.WRIGHT & SONS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF G.R.WRIGHT & SONS LIMITED (CONTINUED)
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.
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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.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.
for and on behalf of
Statutory auditor
Chartered Accountants
Leytonstone House
London
E11 1GA
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G.R.WRIGHT & SONS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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G.R.WRIGHT & SONS LIMITED
REGISTERED NUMBER: 00129755
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
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.
The notes on pages 22 to 47 form part of these financial statements.
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G.R.WRIGHT & SONS LIMITED
REGISTERED NUMBER: 00129755
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023
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G.R.WRIGHT & SONS LIMITED
REGISTERED NUMBER: 00129755
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
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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
The notes on pages 22 to 47 form part of these financial statements.
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G.R.WRIGHT & SONS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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G.R.WRIGHT & SONS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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G.R.WRIGHT & SONS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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G.R.WRIGHT & SONS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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G.R.WRIGHT & SONS LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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
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:
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.
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.
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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:
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:
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.
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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.
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (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.
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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.
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Defined benefit pension plan
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Page 28
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Page 29
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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.
Analysis of turnover by country of destination:
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 31
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 32
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 33
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
12.Taxation (continued)
There were no factors that may affect future tax charges.
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 35
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 36
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
14.Tangible fixed assets (continued)
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 38
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 39
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 40
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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.
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 42
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Capital redemption reserve
Profit and loss account
Page 43
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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.
Page 44
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
29.Pension commitments (continued)
Page 45
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
29.Pension commitments (continued)
Page 46
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G.R.WRIGHT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The group’s ultimate controlling party is The David Wright Family Settlement Trust.
Page 47
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