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Company registration number: 04189746
William Mellard & Sons Limited
Financial statements
31 March 2024
William Mellard & Sons Limited
Contents
Directors and other information
Strategic report
Directors report
Independent auditor's report to the members
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
William Mellard & Sons Limited
Directors and other information
Directors Mr Simon Mellard
Mrs Julie Ann Mellard
Secretary Mrs Julie Ann Mellard
Company number 04189746
Registered office River Works
Campbell Road
Stoke On Trent
Staffordshire
ST4 4RN
Business address River Works
Campbell Road
Stoke On Trent
Staffordshire
ST4 4RN
Auditor Hardings
6 Marsh Parade
Newcastle Under Lyme
Staffordshire
ST5 1DU
Accountants Hardings
6 Marsh Parade
Newcastle Under Lyme
Staffordshire
ST5 1DU
Bankers National Westminster Bank
75 High Street
Newcastle Under Lyme
Staffordshire
Barclays Bank
High Street
Newcastle Under Lyme
Staffordshire
William Mellard & Sons Limited
Strategic report
Year ended 31st March 2024
Background
William Mellard & Sons Ltd are an independent Steel Stockholder & Processor based at Riverworks, Campbell Road, Stoke on Trent.
Activities
Utilising our own delivery vehicles we distribute across the Staffordshire and South Cheshire area.
Whilst stocking a full range of steel in standard sizes, we now place more emphasis on processing material. To this end we have continued to invest over the last ten years and this year saw our latest acquisition, a 200 tonne Break Press.
Review of the year
Market conditions this year have been a lot more challenging than the previous two, as steel prices fell to a more sustainable level.
Future outlook
The company expects to see a reduction in interest rates in the third quarter, along with a new government. Hopefully this will stabilise things and we can move towards growth.
Environmental matters
During the last twelve months the company has moved towards adopting a 'greener' stance with the implementation of ISO14001 environmental controls across our systems, co-ordinated with doubling the size of the solar array on our roof.
This report was approved by the board of directors on 2nd August 2024 and signed on behalf of the board by:
Mr Simon Mellard
Director
William Mellard & Sons Limited
Directors report
Year ended 31st March 2024
The directors present their report and the financial statements of the company for the year ended 31st March 2024.
Directors
The directors who served the company during the year were as follows:
Mr Simon Mellard
Mrs Julie Ann Mellard
Dividends
Particulars of recommended dividends are detailed in note 13 to the financial statements.
Directors responsibilities statement
The directors are responsible for preparing the strategic report, directors 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 company and the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 02 August 2024 and signed on behalf of the board by:
Mr Simon Mellard
Director
William Mellard & Sons Limited
Independent auditor's report to the members of
William Mellard & Sons Limited
Year ended 31st March 2024
Opinion
We have audited the financial statements of William Mellard & Sons Limited (the 'company') for the year ended 31st March 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the company's affairs as at 31st March 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and the returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of 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 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 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. 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: In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: - enquiring of management including obtaining and reviewing supporting documentation concerning the company's policies and procedures relating to: - identifying, evaluation and complying with laws and regulations and whether they were aware of any instances of non compliance; - detecting and responding to the risks of fraud and whether they have any knowledge of any actual, suspected or alleged fraud; - the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. - obtaining an understanding of the legal and regulatory framework in which the company operates, focusing on those laws and regulations that had a direct effect on the financial statement or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the Companies Act 2006, Pension legislation and Tax legislation. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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.
T R McNeal FCA (Senior Statutory Auditor)
For and on behalf of
Hardings
Chartered Accountants and Registered auditors
6 Marsh Parade
Newcastle Under Lyme
Staffordshire
ST5 1DU
02 August 2024
William Mellard & Sons Limited
Statement of comprehensive income
Year ended 31st March 2024
2024 2023
Note £ £
Turnover 4 9,505,883 11,613,917
Cost of sales ( 5,760,277) ( 7,119,601)
_______ _______
Gross profit 3,745,606 4,494,316
Administrative expenses ( 3,325,303) ( 3,383,810)
Other operating income 5 7,740 7,740
_______ _______
Operating profit 6 428,043 1,118,246
Income from other fixed asset investments 9 - 24,626
Interest payable and similar expenses 10 ( 34,095) ( 60,136)
Profit before taxation 393,948 1,082,736
Tax on profit 11 ( 79,470) ( 299,850)
_______ _______
Profit for the financial year and total comprehensive income 314,478 782,886
_______ _______
All the activities of the company are from continuing operations.
William Mellard & Sons Limited
Statement of financial position
31st March 2024
2024 2023
Note £ £ £ £
Fixed assets
Intangible assets 14 - -
Tangible assets 15 2,375,423 2,596,807
_______ _______
2,375,423 2,596,807
Current assets
Stocks 16 698,247 995,398
Debtors 17 2,025,391 2,279,924
Cash at bank and in hand 1,060,677 758,954
_______ _______
3,784,315 4,034,276
Creditors: amounts falling due
within one year 18 ( 2,177,818) ( 2,537,967)
_______ _______
Net current assets 1,606,497 1,496,309
_______ _______
Total assets less current liabilities 3,981,920 4,093,116
Creditors: amounts falling due
after more than one year 19 ( 456,751) ( 610,281)
Provisions for liabilities 21 ( 249,472) ( 321,616)
_______ _______
Net assets 3,275,697 3,161,219
_______ _______
Capital and reserves
Called up share capital 24 425,830 425,830
Profit and loss account 2,849,867 2,735,389
_______ _______
Shareholders funds 3,275,697 3,161,219
_______ _______
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
These financial statements were approved by the board of directors and authorised for issue on 02 August 2024 , and are signed on behalf of the board by:
Mr Simon Mellard
Director
Company registration number: 04189746
William Mellard & Sons Limited
Statement of changes in equity
Year ended 31st March 2024
Called up share capital Profit and loss account Total
£ £ £
At 1st April 2022 425,830 2,167,503 2,593,333
Profit for the year 782,886 782,886
_______ _______ _______
Total comprehensive income for the year - 782,886 782,886
Dividends paid and payable ( 215,000) ( 215,000)
_______ _______ _______
Total investments by and distributions to owners - ( 215,000) ( 215,000)
_______ _______ _______
At 31st March 2023 and 1st April 2023 425,830 2,735,389 3,161,219
Profit for the year 314,478 314,478
_______ _______ _______
Total comprehensive income for the year - 314,478 314,478
Dividends paid and payable ( 200,000) ( 200,000)
_______ _______ _______
Total investments by and distributions to owners - ( 200,000) ( 200,000)
_______ _______ _______
At 31st March 2024 425,830 2,849,867 3,275,697
_______ _______ _______
William Mellard & Sons Limited
Statement of cash flows
Year ended 31st March 2024
2024 2023
£ £
Cash flows from operating activities
Profit for the financial year 314,478 782,886
Adjustments for:
Depreciation of tangible assets 409,764 357,998
Income from other fixed asset investments - ( 24,626)
Interest payable and similar expenses 34,095 60,136
Gain/(loss) on disposal of tangible assets - 6,235
Tax on profit 79,470 299,850
Accrued expenses/(income) ( 24,166) 5,002
Changes in:
Stocks 297,151 201,393
Trade and other debtors 254,533 251,921
Trade and other creditors ( 318,592) ( 394,408)
_______ _______
Cash generated from operations 1,046,733 1,546,387
Interest paid ( 34,095) ( 60,136)
Tax paid ( 176,083) ( 205,275)
_______ _______
Net cash from operating activities 836,555 1,280,976
_______ _______
Cash flows from investing activities
Purchase of tangible assets ( 188,380) ( 502,001)
Proceeds from sale of tangible assets - 16,100
Purchase of other investments - 135,908
Proceeds from sale of other investments - 24,626
_______ _______
Net cash used in investing activities ( 188,380) ( 325,367)
_______ _______
Cash flows from financing activities
Payment of finance lease liabilities ( 146,452) ( 139,708)
Equity dividends paid ( 200,000) ( 215,000)
_______ _______
Net cash used in financing activities ( 346,452) ( 354,708)
_______ _______
Net increase/(decrease) in cash and cash equivalents 301,723 600,901
Cash and cash equivalents at beginning of year 758,954 158,052
_______ _______
Cash and cash equivalents at end of year 1,060,677 758,953
_______ _______
William Mellard & Sons Limited
Notes to the financial statements
Year ended 31st March 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is William Mellard & Sons Limited, River Works, Campbell Road, Stoke On Trent, Staffordshire, ST4 4RN.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill - 20 years straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property - Straight line over 50 years
Plant and machinery - 15% on net book value
Fittings fixtures and equipment - 15% on net book value
Motor vehicles - 25% on net book value
Computers - 20%/25% straight line
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Hire purchase and finance leases
Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4. Turnover
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2024 2023
£ £
Rental income 7,740 7,740
_______ _______
6. Operating profit
Operating profit is stated after charging/(crediting):
2024 2023
£ £
Depreciation of tangible assets 409,764 357,998
(Gain)/loss on disposal of tangible assets - 6,235
Impairment of trade debtors (2,178) 14,165
Operating lease rentals 140,312 94,427
_______ _______
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024 2023
Employees 42 40
_______ _______
The aggregate payroll costs incurred during the year were:
2024 2023
£ £
Wages and salaries 1,632,390 1,809,603
Social security costs 169,898 204,521
Other pension costs 159,650 112,853
_______ _______
1,961,938 2,126,977
_______ _______
8. Directors remuneration
The directors aggregate remuneration in respect of qualifying services was:
2024 2023
£ £
Remuneration 27,226 25,918
Company contributions to pension schemes in respect of qualifying services 120,000 80,000
_______ _______
147,226 105,918
_______ _______
9. Income from other fixed asset investments
2024 2023
£ £
Gain/loss on disposal of other FA investments (-) 24,626
_______ _______
10. Interest payable and similar expenses
2024 2023
£ £
Bank loans and overdrafts ( 2,137) 17,159
Other loans made to the company:
Finance leases and hire purchase contracts 36,232 42,977
_______ _______
34,095 60,136
_______ _______
11. Tax on profit
Major components of tax expense
2024 2023
£ £
Current tax:
UK current tax expense 151,614 176,082
_______ _______
Deferred tax:
Origination and reversal of timing differences ( 72,144) 123,768
_______ _______
Tax on profit 79,470 299,850
_______ _______
Reconciliation of tax expense
The tax assessed on the profit for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK of 25.00 % (2023: 19.00%).
2024 2023
£ £
Profit before taxation 393,948 1,082,736
_______ _______
Profit multiplied by rate of tax 98,487 205,720
Effect of expenses not deductible for tax purposes 7,891 7,426
Effect of capital allowances and depreciation ( 26,898) 86,704
_______ _______
Tax on profit 79,480 299,850
_______ _______
12. Earnings per share
Basic earnings/(loss) per share
The earnings/(loss) and weighted average number of shares used in the calculation of basic earnings/(loss) per share are as follows:
2024 2023
£ £
Profit for the year attributable to the owners of the company 314,478 782,886
_______ _______
Diluted earnings/(loss) per share
The earnings/(loss) and weighted average number of shares used in the calculation of diluted earnings/(loss) per share are as follows:
2024 2023
£ £
Earnings/(loss) used in calculation of basic earnings/(loss) per share 314,478 782,886
_______ _______
13. Dividends
Equity dividends
2024 2023
£ £
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year) 130,000 215,000
_______ _______
14. Intangible assets
Goodwill Total
£ £
Cost
At 1st April 2023 and 31st March 2024 150,750 150,750
_______ _______
Amortisation
At 1st April 2023 and 31st March 2024 150,750 150,750
_______ _______
Carrying amount
At 31st March 2024 - -
_______ _______
At 31st March 2023 - -
_______ _______
15. Tangible assets
Freehold property Plant and machinery Fixtures, fittings and equipment Motor vehicles Computers Total
£ £ £ £ £ £
Cost
At 1st April 2023 1,634,494 2,311,641 99,234 129,660 218,784 4,393,813
Additions - 172,252 3,070 - 13,058 188,380
_______ _______ _______ _______ _______ _______
At 31st March 2024 1,634,494 2,483,893 102,304 129,660 231,842 4,582,193
_______ _______ _______ _______ _______ _______
Depreciation
At 1st April 2023 453,121 1,107,400 67,050 45,787 123,648 1,797,006
Charge for the year 32,690 313,466 5,243 20,969 37,396 409,764
_______ _______ _______ _______ _______ _______
At 31st March 2024 485,811 1,420,866 72,293 66,756 161,044 2,206,770
_______ _______ _______ _______ _______ _______
Carrying amount
At 31st March 2024 1,148,683 1,063,027 30,011 62,904 70,798 2,375,423
_______ _______ _______ _______ _______ _______
At 31st March 2023 1,181,373 1,204,241 32,184 83,873 95,136 2,596,807
_______ _______ _______ _______ _______ _______
16. Stocks
2024 2023
£ £
Finished goods and goods for resale 698,247 995,398
_______ _______
17. Debtors
2024 2023
£ £
Trade debtors 1,728,630 1,960,775
Prepayments and accrued income 83,042 76,443
Other debtors 213,719 242,706
_______ _______
2,025,391 2,279,924
_______ _______
18. Creditors: amounts falling due within one year
2024 2023
£ £
Trade creditors 1,601,448 1,949,487
Accruals and deferred income 51,693 75,859
Corporation tax 152,410 176,879
Social security and other taxes 204,403 168,776
Obligations under finance leases 153,530 146,452
Other creditors 14,334 20,514
_______ _______
2,177,818 2,537,967
_______ _______
The invoice discounting account is secured on the trade debtors and a fixed and floating charge over the property and assets. The Natwest overdraft and loans are secured by both a freehold legal charge over the land at Campbell Road and its associated assets, and the store and premises off Campbell Road and its associated assets, a debenture and a charge over both the Phoenix Life and Friends Provident Life life policies on S.D.Mellard.
19. Creditors: amounts falling due after more than one year
2024 2023
£ £
Obligations under finance leases 456,751 610,281
_______ _______
20. Obligations under finance leases
Company lessee
The total future minimum lease payments under finance lease agreements are as follows:
2024 2023
£ £
Not later than 1 year 153,530 146,452
Later than 1 year and not later than 5 years 456,751 610,281
_______ _______
610,281 756,733
_______ _______
Present value of minimum lease payments 610,281 756,733
_______ _______
21. Provisions
Deferred tax (note 22) Total
£ £
At 1st April 2023 321,616 321,616
Additions ( 72,144) ( 72,144)
_______ _______
At 31st March 2024 249,472 249,472
_______ _______
22. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024 2023
£ £
Included in provisions (note 21) 249,472 321,616
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of:
2024 2023
£ £
Accelerated capital allowances 249,472 321,616
_______ _______
23. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £ 159,650 (2023: £ 112,853 ).
24. Called up share capital
Issued, called up and fully paid
2024 2023
No £ No £
Ordinary shares of £ 1.00 each 425,830 425,830 425,830 425,830
_______ _______ _______ _______
25. Analysis of changes in net debt
At 1 April 2023 Cash flows At 31 March 2024
£ £ £
Cash and cash equivalents 758,954 301,723 1,060,677
Debt due within one year (146,452) (7,078) (153,530)
Debt due after one year (610,281) 153,530 (456,751)
_______ _______ _______
2,221 448,175 450,396
_______ _______ _______
26. Capital commitments
Capital expenditure contracted for but not provided for in the financial statements is as follows:
2024 2023
£ £
Tangible assets 77,000 130,500
_______ _______
27. Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Not later than 1 year 133,014 8,797
Later than 1 year and not later than 5 years 277,159 198,663
Later than 5 years 13,000 -
_______ _______
423,173 207,460
_______ _______
28. Directors advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2024
Balance brought forward Advances /(credits) to the directors Amounts repaid Balance o/standing
£ £ £ £
Mr Simon Mellard 165,111 57,754 ( 49,000) 173,865
Mrs Julie Ann Mellard 47,434 - ( 36,793) 10,641
_______ _______ _______ _______
212,545 57,754 ( 85,793) 184,506
_______ _______ _______ _______
2023
Balance brought forward Advances /(credits) to the directors Amounts repaid Balance o/standing
£ £ £ £
Mr Simon Mellard 142,495 82,116 ( 59,500) 165,111
Mrs Julie Ann Mellard 82,246 ( 9,312) ( 25,500) 47,434
_______ _______ _______ _______
224,741 72,804 ( 85,000) 212,545
_______ _______ _______ _______