Company registration number 00323812 (England and Wales)
ARCHBOLD HOLDINGS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ARCHBOLD HOLDINGS LTD
COMPANY INFORMATION
Directors
D S Archbold OBE
Y Archbold
A Maher
B I C Hart
X M Archbold
D C K Pitman
Secretary
J Holmes
Company number
00323812
Registered office
Albert Road
Morley
Leeds
West Yorkshire
LS27 8TT
Auditor
Pierce C A Limited
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
Business address
Albert Road
Morley
Leeds
West Yorkshire
LS27 8TT
ARCHBOLD HOLDINGS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9 - 10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 36
ARCHBOLD HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Fair review of the business

In recent years, the group has successfully streamlined its operations and invested in buildings, equipment, systems, and processes to deliver exceptional customer service. The group plans to further increase revenues and profits in the coming years through similar strategic initiatives. Additionally, the group remains committed to its environmental responsibilities and plans to invest in energy-efficient methods to minimise the impact of its growth.

 

During the year, the group completed the acquisition of Puffin Packaging Limited, whose principal activity is the manufacture and sale of packaging products.

 

The reports of the Company’s wholly-owned subsidiaries, Archbold Carshop Limited and Archbold Logistics Limited, follow here:

Archbold Carshop Limited

 

Principal activities

 

The company’s primary activity remains operating as a franchise service provider for private cars and light commercial vehicles and accident damage repairs.

 

Business review

 

The directors are pleased to report a net profit before tax of £166,275 (2022: £33,731) on a turnover of £4.6 million (2022: £3.3 million).

 

The company has seen positive outcomes from investing in the recruitment, training, and development of technicians and the customer service team. This investment has resulted in increased sales, improved operating margins, and enhanced customer service levels. Additionally, the company continues to maintain its Kite Mark accreditation.

 

Future developments

 

The directors intend to maintain their commitment to exceptional customer service while expanding the Service, Parts, and Accident Repair divisions through ongoing investments in systems, workforce, and facilities.

ARCHBOLD HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Archbold Logistics Limited

 

Principal activities

 

The principal activities of the company continue to be that of providing logistics and warehousing.

 

Business review

 

The directors are pleased to report a net profit before tax of £1,379,631 (2022: £1,372,474) on a turnover of £28.6 million (2022: £28.6 million).

 

The company continues to strive to improve efficiencies against a backdrop of increasing costs. As part of the company’s commitment to minimising the environmental impact of growth, it has invested in the acquisition of several longer semi-trailers to reduce the number of trips over time.

 

We would like to once again congratulate the team for their sustained efforts throughout the year, without which these results would not have been possible.

 

Principal risks and uncertainties

 

The main risks and uncertainties facing the business, similar to others in the sector, stem from the broader economic downturn, sector competition, and rising inflationary costs. To mitigate these risks, the directors continue to maintain strong reserves within the group.

 

Future developments

 

The directors plan to continue moving the business forward towards its long-term objectives and generate profitable sales growth over the coming years. Archbold Logistics will continue to focus on markets where it has leadership, success, and experience. A challenge moving forward is to continue the growth of the business in an environmentally friendly and sustainable manner.

 

Key performance indicators

 

The key performance indicators used by the company include turnover, gross profit, operating profit, operating cash flows, and monitoring of fuel and labour costs. These performance indicators are monitored on a weekly basis.

On behalf of the board

..............................
Y Archbold
Director
.........................
ARCHBOLD HOLDINGS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company continued to be that of a holding company of the operating businesses owned by the company. The principal activity of the group continued to be that of a logistics and warehousing provider, and a provider of vehicle repairs and servicing.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £149,999. The directors do not recommend payment of a further dividend.

Preference dividends were paid amounting to £10,000. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

D S Archbold OBE
Y Archbold
A Maher
B I C Hart
X M Archbold
D C K Pitman
Auditor

In accordance with the company's articles, a resolution proposing that Pierce C A Limited be reappointed as auditor of the group will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ARCHBOLD HOLDINGS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Y Archbold
Director
8 August 2024
ARCHBOLD HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARCHBOLD HOLDINGS LTD
- 5 -
Opinion

We have audited the financial statements of Archbold Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The 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 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

ARCHBOLD HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARCHBOLD HOLDINGS LTD
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the 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:

Responsibilities of directors

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

In identifying and assessing risks of material misstatement in respect of irregularities we considered the following:

We are also required to perform specific procedures to respond to the risk of management override.

As a result of our audit procedures we did not identify a material risk of fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

ARCHBOLD HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARCHBOLD HOLDINGS LTD
- 7 -

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

James King (Senior Statutory Auditor)
For and on behalf of Pierce C A Limited
8 August 2024
Statutory Auditor
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
ARCHBOLD HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
33,682,595
31,884,081
Cost of sales
(26,250,403)
(24,885,570)
Gross profit
7,432,192
6,998,511
Administrative expenses
(6,116,609)
(5,864,483)
Other operating income
388,552
362,029
Operating profit
4
1,704,135
1,496,057
Interest receivable and similar income
8
4,708
500
Interest payable and similar expenses
9
(138,454)
(92,864)
Amounts written off investments
10
-
150,000
Profit before taxation
1,570,389
1,553,693
Tax on profit
11
(353,836)
(239,773)
Profit for the financial year
1,216,553
1,313,920
Other comprehensive income
Actuarial (loss)/gain on defined benefit pension schemes
(17,000)
906,000
Tax relating to other comprehensive income
4,750
(240,250)
Total comprehensive income for the year
1,204,303
1,979,670
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ARCHBOLD HOLDINGS LTD
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
1,216,254
-
0
Tangible assets
14
7,515,306
6,476,167
8,731,560
6,476,167
Current assets
Stocks
17
445,439
198,644
Debtors
18
8,875,880
8,401,824
Cash at bank and in hand
1,612,223
1,401,964
10,933,542
10,002,432
Creditors: amounts falling due within one year
19
(7,352,955)
(6,696,795)
Net current assets
3,580,587
3,305,637
Total assets less current liabilities
12,312,147
9,781,804
Creditors: amounts falling due after more than one year
20
(2,401,340)
(1,262,138)
Provisions for liabilities
Deferred tax liability
23
797,455
469,618
(797,455)
(469,618)
Net assets excluding pension surplus
9,113,352
8,050,048
Defined benefit pension surplus
24
482,000
501,000
Net assets
9,595,352
8,551,048
Capital and reserves
Called up share capital
25
195,996
195,996
Revaluation reserve
1,566,254
1,566,254
Capital redemption reserve
175,192
175,192
Profit and loss reserves
7,657,910
6,613,606
Total equity
9,595,352
8,551,048
ARCHBOLD HOLDINGS LTD
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 8 August 2024 and are signed on its behalf by:
08 August 2024
Y Archbold
Director
Company registration number 00323812 (England and Wales)
ARCHBOLD HOLDINGS LTD
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
2,761,836
2,772,289
Investments
15
1,538,000
38,000
4,299,836
2,810,289
Current assets
Debtors
18
768,042
558,600
Cash at bank and in hand
178,381
214,190
946,423
772,790
Creditors: amounts falling due within one year
19
(392,007)
(578,601)
Net current assets
554,416
194,189
Total assets less current liabilities
4,854,252
3,004,478
Creditors: amounts falling due after more than one year
20
(1,500,000)
(541,599)
Provisions for liabilities
Deferred tax liability
23
70,034
77,395
(70,034)
(77,395)
Net assets
3,284,218
2,385,484
Capital and reserves
Called up share capital
25
195,996
195,996
Revaluation reserve
1,392,991
1,392,991
Capital redemption reserve
175,192
175,192
Profit and loss reserves
1,520,039
621,305
Total equity
3,284,218
2,385,484

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,058,734 (2022 - £145,775 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 8 August 2024 and are signed on its behalf by:
08 August 2024
Y Archbold
Director
Company registration number 00323812 (England and Wales)
ARCHBOLD HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
195,996
1,566,254
175,192
4,743,937
6,681,379
Year ended 31 December 2022:
Profit for the year
-
-
-
1,313,920
1,313,920
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
906,000
906,000
Tax relating to other comprehensive income
-
-
0
-
(240,250)
(240,250)
Total comprehensive income
-
-
-
1,979,670
1,979,670
Dividends
12
-
-
-
(110,001)
(110,001)
Balance at 31 December 2022
195,996
1,566,254
175,192
6,613,606
8,551,048
Year ended 31 December 2023:
Profit for the year
-
-
-
1,216,553
1,216,553
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
(17,000)
(17,000)
Tax relating to other comprehensive income
-
-
0
-
4,750
4,750
Total comprehensive income
-
-
-
1,204,303
1,204,303
Dividends
12
-
-
-
(159,999)
(159,999)
Balance at 31 December 2023
195,996
1,566,254
175,192
7,657,910
9,595,352
ARCHBOLD HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
195,996
1,392,991
175,192
585,531
2,349,710
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
145,775
145,775
Dividends
12
-
-
-
(110,001)
(110,001)
Balance at 31 December 2022
195,996
1,392,991
175,192
621,305
2,385,484
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
1,058,733
1,058,733
Dividends
12
-
-
-
(159,999)
(159,999)
Balance at 31 December 2023
195,996
1,392,991
175,192
1,520,039
3,284,218
ARCHBOLD HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
2,250,676
935,931
Interest paid
(136,454)
(84,864)
Income taxes paid
(192,044)
(305,691)
Net cash inflow from operating activities
1,922,178
545,376
Investing activities
Purchase of tangible fixed assets
(1,157,289)
(597,292)
Proceeds from disposal of tangible fixed assets
120,014
210,700
Purchase of subsidiaries, net of cash acquired
278,740
-
Repayment of loans
-
150,000
Interest received
4,709
500
Net cash used in investing activities
(753,826)
(236,092)
Financing activities
Repayment of bank loans
(645,826)
(65,222)
Payment of finance leases obligations
(746,341)
(413,913)
Dividends paid to equity shareholders
(159,999)
(110,001)
Net cash used in financing activities
(1,552,166)
(589,136)
Net decrease in cash and cash equivalents
(383,814)
(279,852)
Cash and cash equivalents at beginning of year
839,576
1,119,428
Cash and cash equivalents at end of year
455,762
839,576
Relating to:
Cash at bank and in hand
1,612,223
1,401,964
Bank overdrafts included in creditors payable within one year
(1,156,461)
(562,388)
ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Archbold Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Albert Road, Morley, Leeds, West Yorkshire, LS27 8TT.

 

The group consists of Archbold Holdings Ltd and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include freehold properties at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Archbold Holdings Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.4
Going concern

The group finances its operations by means of invoice financing facilities and hire purchase agreements. The directors are not aware of any reason why these facilities will not be maintained at their current level. As a result the directors have continued to adopt the going concern basis in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost less accumulated depreciation.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
No depreciation charged or 10 - 50 years
Leasehold land and buildings
Duration of lease
Plant and equipment
3 - 10 years
Fixtures and fittings
3 - 10 years
Computers
3 - 5 years
Vehicles and trailers
5 years with 20% residual value (tractor units) and 10 years with 10% residual value (trailers)

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks are valued at the lower of cost and net realisable value.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Logistics and warehousing
28,568,410
28,627,760
Vehicle servicing and repairs
4,651,602
3,256,321
Manufacture of eco-friendly packaging
462,583
-
33,682,595
31,884,081
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
25,112,072
23,868,308
Rest of the World
8,570,523
8,015,773
33,682,595
31,884,081
2023
2022
£
£
Other revenue
Interest income
4,708
500
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
128,872
153,156
Depreciation of owned tangible fixed assets
379,707
480,398
Depreciation of tangible fixed assets held under finance leases
653,398
419,246
Profit on disposal of tangible fixed assets
(70,109)
(108,388)
Amortisation of intangible assets
31,186
-
Operating lease charges
494,977
306,520
ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,410
4,200
Audit of the financial statements of the company's subsidiaries
25,085
23,890
29,495
28,090
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
9
7
6
6
Staff
188
167
2
1
Total
197
174
8
7

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
9,501,650
9,505,248
447,680
429,500
Pension costs
472,846
232,696
46,550
29,897
9,974,496
9,737,944
494,230
459,397
ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
572,239
612,508
Company pension contributions to defined contribution schemes
118,972
125,323
691,211
737,831
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
222,852
249,776
Company pension contributions to defined contribution schemes
11,458
12,500

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 8 (2022 - 8).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
-
0
500
Other interest income
4,708
-
Total income
4,708
500
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
72,169
36,332
Interest on finance leases and hire purchase contracts
59,133
44,449
Net interest on the net defined benefit liability
2,000
8,000
Other interest
5,152
4,083
Total finance costs
138,454
92,864
10
Amounts written off investments
2023
2022
£
£
Amounts written back to current loans
-
150,000
ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
40,000
260,795
Deferred tax
Origination and reversal of timing differences
313,836
(21,022)
Total tax charge
353,836
239,773

In 2021, an increase in the corporation tax rate to 25% with effect from 1 April 2023 was substantively enacted. The 23.52% rate used below reflects 9 months at this new rate and 3 months of the previous rate of 19%. The 25% rate is used to measure UK deferred taxes in 2023 (and in 2022 to the extent the related timing differences were expected to reverse after 1 April 2023).

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,570,389
1,553,693
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
369,364
295,202
Tax effect of expenses that are not deductible in determining taxable profit
17,152
10,176
Tax effect of income not taxable in determining taxable profit
-
0
(30,342)
Tax effect of utilisation of tax losses not previously recognised
(18,869)
-
0
Unutilised tax losses carried forward
-
0
7,900
Effect of change in corporation tax rate
27,325
-
Permanent capital allowances in excess of depreciation
(33,737)
(28,293)
Other
(7,399)
(14,870)
Taxation charge
353,836
239,773

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
(4,750)
240,250
ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
159,999
110,001
13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023
-
0
Additions - business combinations
1,247,440
At 31 December 2023
1,247,440
Amortisation and impairment
At 1 January 2023
-
0
Amortisation charged for the year
31,186
At 31 December 2023
31,186
Carrying amount
At 31 December 2023
1,216,254
At 31 December 2022
-
0
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
14
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Vehicles and trailers
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
3,143,845
624,156
1,221,966
1,545,257
1,725,163
5,596,312
13,856,699
Additions
8,207
-
0
81,401
10,833
18,057
1,931,153
2,049,651
Business combinations
-
0
-
0
62,009
10,489
-
0
-
0
72,498
Disposals
-
0
-
0
(13,844)
-
0
-
0
(504,730)
(518,574)
At 31 December 2023
3,152,052
624,156
1,351,532
1,566,579
1,743,220
7,022,735
15,460,274
Depreciation and impairment
At 1 January 2023
77,517
401,168
1,055,499
1,246,170
1,674,522
2,925,656
7,380,532
Depreciation charged in the year
15,799
11,803
52,332
65,714
23,935
863,522
1,033,105
Eliminated in respect of disposals
-
0
-
0
(12,719)
-
0
-
0
(455,950)
(468,669)
At 31 December 2023
93,316
412,971
1,095,112
1,311,884
1,698,457
3,333,228
7,944,968
Carrying amount
At 31 December 2023
3,058,736
211,185
256,420
254,695
44,763
3,689,507
7,515,306
At 31 December 2022
3,066,328
222,988
166,467
299,087
50,641
2,670,656
6,476,167
ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
Company
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 January 2023
2,605,613
53,739
442,855
10,848
3,113,055
Additions
8,207
-
0
295
1,232
9,734
At 31 December 2023
2,613,820
53,739
443,150
12,080
3,122,789
Depreciation and impairment
At 1 January 2023
-
0
33,467
299,916
7,383
340,766
Depreciation charged in the year
-
0
2,431
16,216
1,540
20,187
At 31 December 2023
-
0
35,898
316,132
8,923
360,953
Carrying amount
At 31 December 2023
2,613,820
17,841
127,018
3,157
2,761,836
At 31 December 2022
2,605,613
20,272
142,939
3,465
2,772,289

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Vehicles and trailers
2,664,932
1,792,715
-
0
-
0

On a historical cost basis the carrying value of the freehold property is £532,157.

ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
1,538,000
38,000

During the year the company acquired Puffin Packaging Limited for a total consideration of £1,500,000. The consideration was settled by the issue of 1,500,000 £1 preference shares in the company.

Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
38,000
Additions
1,500,000
At 31 December 2023
1,538,000
Carrying amount
At 31 December 2023
1,538,000
At 31 December 2022
38,000
16
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Archbold Logistics Limited
Birch Business Park, Whittle Lane, Heywood, OL10 2SX
Ordinary
100.00
-
Archbold Carshop Limited
Prospect Garage, Church Street, Morley, Leeds, LS27 8LY
Ordinary
100.00
-
Archbold Logistics (Manchester) Limited
Birch Business Park, Whittle Lane, Heywood, OL10 2SX
Ordinary
-
100.00
Puffin Packaging Limited
Archbold House, Albert Road, Leeds, West Yorkshire, United Kingdom, LS27 8TT
Ordinary
100.00
-

The following subsidiaries are exempt from audit under section 479A of the Companies Act 2006 as the parent company has given a guarantee in respect of all outstanding liabilities at the financial year end:

ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
322,004
67,252
-
-
Finished goods and goods for resale
123,435
131,392
-
0
-
0
445,439
198,644
-
-
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,744,910
7,766,588
12,120
151,687
Corporation tax recoverable
49,863
-
0
-
0
-
0
Amounts owed by group undertakings
-
-
739,287
52,589
Other debtors
3,458
401,435
-
0
346,999
Prepayments and accrued income
1,077,649
233,801
16,635
7,325
8,875,880
8,401,824
768,042
558,600
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
1,161,190
633,374
-
0
36,862
Obligations under finance leases
22
566,500
566,752
-
0
-
0
Trade creditors
2,904,371
2,473,113
24,185
23,858
Amounts owed to group undertakings
-
0
-
0
184,184
375,112
Corporation tax payable
40,000
160,932
-
0
-
0
Other taxation and social security
767,722
1,529,997
28,825
28,984
Other creditors
172,171
164,454
19,185
6,429
Accruals and deferred income
1,741,001
1,168,173
135,628
107,356
7,352,955
6,696,795
392,007
578,601

The bank overdraft and invoice discounting facility are secured by a debenture in favour of the company's bankers. The debenture is in respect of all monies due or to become due from the company to the chargee and is secured against all present and future assets of the company.

ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
32,771
612,340
-
0
541,599
Obligations under finance leases
22
868,569
649,798
-
0
-
0
Other borrowings
21
1,500,000
-
0
1,500,000
-
0
2,401,340
1,262,138
1,500,000
541,599

During the year the company issued 1,500,000 £1 non-redeemable preference shares. The preference shares carry a fixed coupon of 9% per annum, payable in July of each year.

Amounts included above which fall due after five years are as follows:
Payable by instalments
12,342
381,542
-
381,542
21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
37,500
683,326
-
0
578,461
Bank overdrafts
1,156,461
562,388
-
0
-
0
Preference shares
1,500,000
-
0
1,500,000
-
0
2,693,961
1,245,714
1,500,000
578,461
Payable within one year
1,161,190
633,374
-
0
36,862
Payable after one year
1,532,771
612,340
1,500,000
541,599
22
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
566,500
566,752
-
0
-
0
In two to five years
868,569
649,798
-
0
-
0
1,435,069
1,216,550
-
-

Hire purchase obligations represent amounts payable by the company or group for certain items of plant and machinery. Contracts include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
23
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
805,034
466,528
Tax losses
(45,397)
-
Retirement benefit obligations
120,476
125,250
Freehold property
40,859
38,330
Other
(123,517)
(160,490)
797,455
469,618
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
34,779
39,065
Retirement benefit obligations
(24)
-
Freehold property
36,279
38,330
Other
(1,000)
-
70,034
77,395
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
469,618
77,395
Charge/(credit) to profit or loss
313,838
(7,361)
Credit to other comprehensive income
(4,750)
-
Other
18,749
-
Liability at 31 December 2023
797,455
70,034
ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
78,113
51,638

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Defined benefit schemes

The employer operates a defined benefit scheme in the UK. This is a separate trustee administered fund holding the pension scheme assets to meet long term pension liabilities. The last full actuarial valuation was as at 6 April 2022, and the results were updated to 31 December 2023 by a qualified actuary, independent of the scheme's sponsoring employer. The major assumptions used by the actuary are shown below.

 

The most recent completed actuarial valuation as at 6 April 2022 showed a deficit of £0.66m, but an update as at 28 February 2023 showed that the scheme had moved into a surplus of £0.15m. The employer agreed with the trustees that no deficit reducing contributions are payable going forward but this will be revised at the next funding valuation. It was also agreed that the employer will pay the PPF and Pension Regulator levies but the scheme will cover other scheme expenses. The Company expects to pay £0 to the Scheme during the accounting year commencing 1 January 2024.

 

2023
2022
Key assumptions
%
%
Discount rate
4.5
4.8
Expected rate of increase of pensions in payment
2.6
2.6
Expected rate of salary increases
2.6
2.6
Inflation (CPI)
2.6
2.6
Inflation (RPI)
3.0
3.1
Mortality assumptions
2023
2022

Assumed life expectations on retirement at age 65:

Years
Years
Retiring today
- Males
21.0
21.6
- Females
23.6
24.1
Retiring in 20 years
- Males
22.3
22.8
- Females
24.9
25.5
ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
24
Retirement benefit schemes
(Continued)
- 33 -

The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:

2023
2022
Group
£
£
Present value of defined benefit obligations
2,876,000
2,880,000
Fair value of plan assets
(3,358,000)
(3,381,000)
Deficit in scheme
(482,000)
(501,000)
The company had no post employment benefits at 31 December 2023 or 1 January 2023.
Group
2023
2022
Amounts recognised in the profit and loss account
£
£
Costs/(income):
Current service cost
26,000
-
Net interest on net defined benefit liability/(asset)
133,000
80,000
Other costs and income
(157,000)
(72,000)
Total costs
2,000
8,000
Group
2023
2022
Amounts recognised in other comprehensive income
£
£
Costs/(income):
Actual return on scheme assets
(24,000)
439,000
Less: calculated interest element
-
-
Return on scheme assets excluding interest income
(24,000)
439,000
Actuarial changes related to obligations
41,000
(1,345,000)
Total costs/(income)
17,000
(906,000)
Group
2023
Movements in the present value of defined benefit obligations
Liabilities at 1 January 2023
2,880,000
Current service cost
26,000
Benefits paid
(204,000)
Actuarial gains and losses
41,000
Interest cost
133,000
At 31 December 2023
2,876,000

The defined benefit obligations arise from plans which are wholly or partly funded.

ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
24
Retirement benefit schemes
(Continued)
- 34 -
Group
2023
Movements in the fair value of plan assets
£
Fair value of assets at 1 January 2023
3,381,000
Return on plan assets (excluding amounts included in net interest)
24,000
Benefits paid
(204,000)
Other
157,000
At 31 December 2023
3,358,000

The actual return on plan assets was positive £181,000 (2022 - negative £367,000).

Group
2023
2022
Fair value of plan assets
£
£
Bonds
3,085,037
2,958,337
Other
272,963
422,663
3,358,000
3,381,000

None of the fair values of the assets shown above include any direct investments in the employer's own financial instruments or any property occupied by, or other assets used by, the employer.

 

The best estimate of contributions to be paid by the employer to the scheme in 2023 is £0.

25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
195,796
195,796
195,796
195,796
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
200
200
200
200
Preference shares classified as equity
200
200
Total equity share capital
195,996
195,996
ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
26
Non-distributable profits reserve

The profit and loss reserves include £670,510 (2022 - £670,510) of non-distributable profits.

 

27
Acquisition of a business

On 29 September 2023 the group acquired 100 percent of the issued capital of Puffin Packaging Limited.

The consideration was satisfied by:
£
Issue of shares
1,500,000
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
462,583
Loss after tax
(112,075)
28
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
819,088
504,165
-
-
Between two and five years
1,598,978
1,831,214
-
-
In over five years
1,558,670
2,601,672
-
-
3,976,736
4,937,051
-
-
29
Related party transactions

During the year the company acquired Puffin Packaging Limited for £1,500,000, at market value, from some of the directors of the company.

30
Controlling party

The ultimate controlling parties are Mr D S Archbold, Mr X M Archbold, Mrs B Archbold, Mrs D Archbold, Mr Y Archbold and Mrs C C L Archbold by virtue of their shareholdings in the company.

ARCHBOLD HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
31
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,216,553
1,313,920
Adjustments for:
Taxation charged
353,836
239,773
Finance costs
138,454
92,864
Investment income
(4,708)
(500)
Gain on disposal of tangible fixed assets
(70,109)
(108,388)
Amortisation and impairment of intangible assets
31,186
-
Depreciation and impairment of tangible fixed assets
1,006,924
899,644
Other gains and losses
-
(150,000)
Pension scheme non-cash movement
-
(63,000)
Movements in working capital:
Increase in stocks
(246,795)
(63,018)
Increase in debtors
(424,193)
(1,119,783)
Increase/(decrease) in creditors
249,528
(105,581)
Cash generated from operations
2,250,676
935,931
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