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Registered number: 08812633









Qualtex Global Limited









Annual Report and Consolidated Financial Statements

For the Year Ended 31 December 2023

 
Qualtex Global Limited
 
 
Company Information


Directors
P Hulme 
C Hulme 
C Gibbons 




Company secretary
C Gibbons



Registered number
08812633



Registered office
Unit 1 Denton Hall Farm Road
Denton

Manchester

M34 2SX




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

3 Stockport Exchange

Stockport

Cheshire

SK1 3GG




Bankers
HSBC
4 Hardman Square

Spinningfields

Manchester

M3 3EB





 
Qualtex Global Limited
 

Contents



Page
Group Strategic Report
 
1 - 3
Directors' Report
 
4 - 5
Independent Auditors' Report
 
6 - 9
Consolidated Statement of Comprehensive Income
 
10
Consolidated Balance Sheet
 
11
Company Balance Sheet
 
12
Consolidated Statement of Changes in Equity
 
13
Company Statement of Changes in Equity
 
14
Consolidated Statement of Cash Flows
 
15 - 16
Consolidated Analysis of Net Debt
 
16
Notes to the Financial Statements
 
17 - 40


 
Qualtex Global Limited
 
 
Group Strategic Report
For the Year Ended 31 December 2023

Introduction
 
The directors present their Group Strategic Report and financial statements for the 12 months ended 31 December 2023. The principal activity of the Group is the provision of home appliance spare parts which are available for distribution worldwide.

Business review
 
The Board are very pleased to report another strong year, with growth seen across all sales channels achieving Turnover of £28.5m (2022: £26.9m). 
Trading margins remained strong within the year, however gross profit margin reduced to 21.0% (
2022: £22.7%). This was driven by a new stock provision policy (£226k increase) and adverse movements on foreign exchange differences (£583k) in the UK business.
Whilst sales still remain challenging for the US entity, it made a small profit in 2023. 
The Group has a robust balance sheet and has strong backing from its lender, HSBC. A revolving credit facility of £3 million was renewed in 2022, and is now in place until June 2025.

Page 1

 
Qualtex Global Limited
 

Group Strategic Report (continued)
For the Year Ended 31 December 2023

Principal risks and uncertainties
 
The Group operates in a competitive market place, and maintains advantage through stock availability, customer service and product quality. Customer demands are typically met through next day delivery. The Group has a broad range of customers with whom it maintains strong relationships.
The Group purchases significant amount of stock, in line with customer demand. Stock is acquired usually with bank loan facilities and often in foreign currencies to alleviate currency movement on transactions with foreign suppliers.
The Group uses various financial instruments. These include loans, cash and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations.
The existence of these financial instruments exposes the Group to a number of financial risks, which are described in more detail below.
The main risks arising from the Group's financial instruments are market risk, currency risk, cash flow interest rate risk, credit risk and liquidity risk. The directors review and agree policies for managing each of these risks and they are summarised below.
Market risk
Market risk encompasses three types of risk, being currency risk, fair value interest rate risk and price risk. The Group's policies for managing fair value interest rate risk are considered along with those for managing cash flow interest rate risk and are set out in the subsection entitled "interest rate risk" below.
Currency risk
The Group is exposed to translation and transaction foreign exchange risk. In relation to translation risk, this is not considered material to the business. Transaction risk arises on the Group's sales and purchases. The Group operates a policy of "self-hedging" as it holds US$'s and €'s in separate bank accounts and pays suppliers from funds within these bank accounts to minimise the impact of exchange gains and losses arising on individual transactions. 
Interest rate risk
The Group finances its operations through a mixture of retained profits, cash and external loans. The Group's exposure to interest rate fluctuations on its borrowings is not considered material.
Liquidity risk
The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs.
Credit risk
The Group's principal financial assets are cash and trade debtors. The credit risk associated with cash is limited as the counterparty is a UK clearing bank with a high credit rating. Credit risk associated with the Group's trade debtors is not considered material.

Page 2

 
Qualtex Global Limited
 

Group Strategic Report (continued)
For the Year Ended 31 December 2023

Financial key performance indicators
 
The directors consider the following KPIs to be the main focus for the Group: sales, gross profit margin and profit before tax.
Sales:
2023: £28,505,310
2022: £26,923,139
Gross profit margin:
2023: 21.0%
2022: 22.7%
Profit before tax:
2023: £1,503,518
2022: £1,164,195

Future developments
The Business will continue to develop new, high quality pattern parts, whilst continuing to supply a wide range of OEM parts, to offer our customers the best products at competitive prices. Further focus will be placed on returning sales to the EU to pre-Brexit levels in the UK business. The US business will follow the UK in implementing a new ERP system in 2024, as this was delayed in 2023.


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



................................................
C Gibbons
Director

Date: 30 July 2024

Page 3

 
Qualtex Global Limited
 
 
 
Directors' Report
For the Year Ended 31 December 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

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

Results and dividends

The profit for the year, after taxation, amounted to £1,333,792 (2022:  £866,453).

The dividend for the year is £1,004,551 (2022: £1,294,968). The directors do not recommend the payment of a final dividend.

Directors

The directors who served during the year were:

P Hulme 
C Hulme 
C Gibbons 

Future developments

The future developments of the Group are disclosed in the Strategic Report.

Page 4

 
Qualtex Global Limited
 
 
 
Directors' Report (continued)
For the Year Ended 31 December 2023

Disclosure of information to auditors

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

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

Post balance sheet events

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

Auditors

The auditorsHurst Accountants Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





................................................
C Gibbons
Director

Date: 30 July 2024

Page 5

 
Qualtex Global Limited
 
 
 
Independent Auditors' Report to the Members of Qualtex Global Limited
 

Opinion


We have audited the financial statements of Qualtex Global Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 6

 
Qualtex Global Limited
 
 
 
Independent Auditors' Report to the Members of Qualtex Global Limited (continued)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

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


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
Qualtex Global Limited
 
 
 
Independent Auditors' Report to the Members of Qualtex Global Limited (continued)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
• The nature of the industry and sector in which the company operates; the control environment and business     performance including key drivers for directors' remuneration, bonus levels and performance targets.
• The outcome of enquiries of local management and parent company management, including whether management    was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge   of any actual, suspected, or alleged fraud. 
• Supporting documentation relating to the Company's policies and procedures for:
    - Identifying, evaluating, and complying with laws and regulations
    - Detecting and responding to the risks of fraud
• The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
• The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the    financial statements and any potential indicators of fraud.
• The legal and regulatory framework in which the Company operates, particularly those laws and regulations which    have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or    which had a fundamental effect on the operations of the Company, including General Data Protection requirements,   and Anti-bribery and Corruption.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
• Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with    the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
• Discussions with management, including consideration of known or suspected instances of non-compliance with        laws and regulations and fraud.
• Evaluation of the operating effectiveness of management’s controls designed to prevent and detect        irregularities.
• Enquiring of management about any actual and potential litigation and claims.
• Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of    material misstatement due to fraud.




 
Page 8

 
Qualtex Global Limited
 
 
 
Independent Auditors' Report to the Members of Qualtex Global Limited (continued)


We have also considered the risk of fraud through management override of controls by:
• Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to    identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or   error.
• Challenging assumptions made by management in their significant accounting estimates, and assessing whether the    judgements made in making accounting estimates are indicative of a potential bias; and
• Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of    business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them.  Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.


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


Use of our report
 

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





John Glover (Senior Statutory Auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
Stockport
Cheshire
SK1 3GG

31 July 2024
Page 9

 
Qualtex Global Limited
 
 
Consolidated Statement of Comprehensive Income
For the Year Ended 31 December 2023

2023
2022
Note
£
£

  

Turnover
 4 
28,505,310
26,923,139

Cost of sales
  
(22,515,446)
(20,805,709)

Gross profit
  
5,989,864
6,117,430

Administrative expenses
  
(4,227,765)
(4,718,949)

Exceptional administrative expenses
 14 
-
(63,892)

Other operating income
 5 
74,367
70,809

Operating profit
 6 
1,836,466
1,405,398

Interest receivable and similar income
 10 
48
-

Interest payable and similar expenses
 11 
(332,996)
(241,203)

Profit before taxation
  
1,503,518
1,164,195

Tax on profit
 12 
(169,726)
(297,742)

Profit for the financial year
  
1,333,792
866,453

  

Unrealised surplus on revaluation of tangible fixed assets
  
-
250,000

Currency translation differences
  
50,457
(26,333)

Deferred tax impact of revaluation
  
-
(62,500)

Other comprehensive income for the year
  
50,457
161,167

Total comprehensive income for the year
  
1,384,249
1,027,620

Profit for the year attributable to:
  

Owners of the parent Company
  
1,333,792
866,453

The notes on pages 17 to 40 form part of these financial statements.

Page 10

 
Qualtex Global Limited
Registered number: 08812633

Consolidated Balance Sheet
As at 31 December 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 15 
323,568
445,782

Tangible assets
 16 
12,079,658
12,233,409

Investments
 17 
10
10

  
12,403,236
12,679,201

Current assets
  

Stocks
 18 
9,054,478
10,419,411

Debtors: amounts falling due within one year
 19 
3,479,851
2,640,115

Cash at bank and in hand
 20 
530,247
655,918

  
13,064,576
13,715,444

Creditors: amounts falling due within one year
 21 
(13,303,185)
(14,564,992)

Net current liabilities
  
 
 
(238,609)
 
 
(849,548)

Total assets less current liabilities
  
12,164,627
11,829,653

Creditors: amounts falling due after more than one year
 22 
(15,769)
-

Provisions for liabilities
  

Deferred taxation
 24 
(2,266,507)
(2,327,000)

Net assets
  
9,882,351
9,502,653


Capital and reserves
  

Called up share capital 
 25 
100
100

Revaluation reserve
 26 
6,360,275
6,520,529

Capital redemption reserve
 26 
2,006,960
2,006,960

Foreign exchange reserve
 26 
24,124
(26,333)

Profit and loss account
 26 
1,490,892
1,001,397

  
9,882,351
9,502,653


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


................................................
C Gibbons
Director

Date: 30 July 2024

The notes on pages 17 to 40 form part of these financial statements.

Page 11

 
Qualtex Global Limited
Registered number: 08812633

Company Balance Sheet
As at 31 December 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 16 
11,427,649
11,723,926

Investments
 17 
4,133,567
4,133,567

  
15,561,216
15,857,493

Current assets
  

Debtors: amounts falling due within one year
 19 
4,188,397
4,100,437

Cash at bank and in hand
 20 
1,597
10,069

  
4,189,994
4,110,506

Creditors: amounts falling due within one year
 21 
(8,464,343)
(8,463,849)

Net current liabilities
  
 
 
(4,274,349)
 
 
(4,353,343)

Total assets less current liabilities
  
11,286,867
11,504,150

  

Provisions for liabilities
  

Deferred taxation
 24 
(2,202,307)
(2,203,171)

Net assets
  
9,084,560
9,300,979


Capital and reserves
  

Called up share capital 
 25 
100
100

Revaluation reserve
 26 
6,249,900
6,410,154

Capital redemption reserve
 26 
2,006,960
2,006,960

Profit and loss account brought forward
  
883,765
1,033,684

Profit for the year
  
788,132
984,795

Dividends paid

  

(844,297)
(1,134,714)

Profit and loss account carried forward
  
827,600
883,765

  
9,084,560
9,300,979


The Company had taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has presented its own Statement of Comprehensive Income in these financial statements.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


................................................
C Gibbons
Director

Date: 30 July 2024

The notes on pages 17 to 40 form part of these financial statements.

Page 12

 
Qualtex Global Limited
 

Consolidated Statement of Changes in Equity
For the Year Ended 31 December 2023


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

£
£
£
£
£
£


At 1 January 2022
100
2,006,960
6,493,283
-
1,269,658
9,770,001


Comprehensive income for the year

Profit for the year
-
-
-
-
866,453
866,453

Currency translation differences
-
-
-
(26,333)
-
(26,333)

Surplus on revaluation of freehold property
-
-
250,000
-
-
250,000

Deferred tax impact of revaluation
-
-
(62,500)
-
-
(62,500)

Dividends: Equity capital
-
-
-
-
(1,294,968)
(1,294,968)

Revaluation reserve transfer
-
-
(160,254)
-
160,254
-



At 1 January 2023
100
2,006,960
6,520,529
(26,333)
1,001,397
9,502,653


Comprehensive income for the year

Profit for the year
-
-
-
-
1,333,792
1,333,792

Currency translation differences
-
-
-
50,457
-
50,457

Dividends: Equity capital
-
-
-
-
(1,004,551)
(1,004,551)

Revaluation reserve transfer
-
-
(160,254)
-
160,254
-


At 31 December 2023
100
2,006,960
6,360,275
24,124
1,490,892
9,882,351


The notes on pages 17 to 40 form part of these financial statements.

Page 13

 
Qualtex Global Limited
 

Company Statement of Changes in Equity
For the Year Ended 31 December 2023


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

£
£
£
£
£


At 1 January 2022
100
2,006,960
6,382,908
1,033,684
9,423,652


Comprehensive income for the year

Profit for the year
-
-
-
984,795
984,795

Surplus on revaluation of freehold property
-
-
250,000
-
250,000

Deferred tax impact of revaluation
-
-
(62,500)
-
(62,500)

Dividends: Equity capital
-
-
-
(1,294,968)
(1,294,968)

Revaluation reserve transfer
-
-
(160,254)
160,254
-



At 1 January 2023
100
2,006,960
6,410,154
883,765
9,300,979


Comprehensive income for the year

Profit for the year
-
-
-
788,132
788,132

Dividends: Equity capital
-
-
-
(1,004,551)
(1,004,551)

Revaluation reserve transfer
-
-
(160,254)
160,254
-


At 31 December 2023
100
2,006,960
6,249,900
827,600
9,084,560


The notes on pages 17 to 40 form part of these financial statements.

Page 14

 
Qualtex Global Limited
 

Consolidated Statement of Cash Flows
For the Year Ended 31 December 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,333,792
866,453

Adjustments for:

Amortisation of intangible assets
126,165
134,955

Depreciation of tangible assets
592,962
612,295

(Profit)/loss on disposal of tangible assets
37,385
(26,556)

Interest paid
332,996
241,203

Interest received
(48)
-

Taxation charge
169,726
297,742

Decrease/(increase) in stocks
1,364,933
(697,602)

(Increase)/decrease in debtors
(903,384)
432,209

Decrease in amounts owed by associated undertakings
80,877
114,843

Decrease in creditors
(705,286)
(101,993)

Corporation tax paid
(288,425)
(235,198)

Foreign exchange movements
50,457
(26,333)

Net cash generated from operating activities

2,192,150
1,612,018


Cash flows from investing activities

Purchase of intangible fixed assets
(3,951)
(17,390)

Purchase of tangible fixed assets
(479,976)
(115,935)

Sale of tangible fixed assets
33,778
34,530

Interest received
48
-

HP interest paid
(114)
(2,772)

Net cash from investing activities

(450,215)
(101,567)
Page 15

 
Qualtex Global Limited
 

Consolidated Statement of Cash Flows (continued)
For the Year Ended 31 December 2023


2023
2022

£
£



Cash flows from financing activities

Repayment of finance leases
(4,209)
(18,520)

Dividends paid
(1,004,551)
(1,294,968)

Interest paid
(332,882)
(238,431)

Invoice discounting net reductions
(506,965)
(146,972)

Net cash used in financing activities
(1,848,607)
(1,698,891)

Net (decrease) in cash and cash equivalents
(106,672)
(188,440)

Cash and cash equivalents at beginning of year
618,296
806,736

Cash and cash equivalents at the end of year
511,624
618,296


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
530,247
655,918

Bank overdrafts
(18,623)
(37,622)

511,624
618,296



Consolidated Analysis of Net Debt
For the Year Ended 31 December 2023





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

£

£

£

Cash at bank and in hand

655,918

(125,671)

-

530,247

Bank overdrafts

(37,622)

18,999

-

(18,623)

Debt due within 1 year

(10,907,841)

-

-

(10,907,841)

Finance leases

-

4,209

(30,398)

(26,189)

Invoice discounting facility

557,767

(506,965)

-

50,802


(9,731,778)
(609,428)
(30,398)
(10,371,604)

The notes on pages 17 to 40 form part of these financial statements.

Page 16

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

1.


General information

Qualtex Global Limited is a private company limited by shares, incorporated in England and Wales and its registered office is Unit 1, Denton Hall Farm Road, Denton, Manchester M34 2SX. The principal activity of the group is the provision of home appliance spare parts which are distributed worldwide. The principal activity of the company is that of a holding company which also holds the property from which the Group trades. The company's registered number is 08812633.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

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



 
2.2

Basis of consolidation

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

  
2.3

Financial reporting standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
- The requirement of Section 7 Statement of Cash Flows;
- The requirement of Section 3 Financial Statement Presentation paragraph 3.17 (d).
The company's information is included in the consolidated financial statements.

Page 17

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.4

Going concern

The financial statements have been prepared on a going concern basis. The following paragraphs set out the basis on which the directors have reached their conclusion.
At 31 December 2023 the Group has net current liabilities of £238,609 (
2022: £849,548), this is due to a liability of £8,407,841 (2022: £8,407,841) related to share capital treated as debt being included within creditors due within 1 year. These are redeemable at the Group's discretion and therefore this is not considered to cause a significant going concern issue.
The directors have prepared forecasts which show that the Group is expected to continue to be profitable and be able to meet its day-to-day working capital requirements from positive operating cash flows.
The directors believe it is appropriate, therefore, to prepare the financial statements to 31 December 2023 on a going concern basis.

 
2.5

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

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

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

Page 18

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.6

Revenue

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

Sale of goods

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

Revenue is recognised upon despatch of goods.

 
2.7

Operating leases: the Group as lessee

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

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

 
2.8

Interest income

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

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Pensions

Defined contribution pension plan

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

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

Page 19

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

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

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

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

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

 
2.12

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

Page 20

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.13

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

Other intangible assets

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

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

 The estimated useful lives range as follows:

Software
-
Up to 10 years or the term of the licence
Negative goodwill
-
Straight line over the life of the assets to which it relates.
Goodwill and other intangibles
-
3-5 years
Trademarks
-
5 years

 
2.14

Tangible fixed assets

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

The group values its' freehold property at a valuation based on the latest revalued amount, less any depreciation and accumulated impairment losses. The property is owned by the parent company and rented to another group entity. Under the provisions of FRS 102, such a property should be accounted for either as an investment property or under the cost model in the company accounts. 
Management have elected to adopt a true and fair over-ride and have not transferred the property to investment property, instead adopting the same approach as that applied by the group, which is felt is a fairer reflection of the fair value of the property and more accurately reflects its usage as an operating base for the group's principal activity. If the property were to be transferred to investment property, no depreciation would be charged, which would increase the net assets of the company by £582,926 (
2022: £291,463). There is no impact on the net assets as reported in the consolidated balance sheet in either the current or prior year.

Page 21

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)


2.14
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
50 years
Plant and machinery
-
5 years
Motor vehicles
-
5 years
Fixtures and fittings and office equipment
-
3-5 years

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

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

Assets under construction are only subject to depreciation at the point that they are brought into use. The carrying value is reviewed periodically and if any assets are unlikely to generate future economic benefit they are subject to impairment accordingly.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.16

Stocks

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

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

 
2.17

Debtors

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

Page 22

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.18

Cash and cash equivalents

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

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

 
2.19

Creditors

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

 
2.20

Provisions for liabilities

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

 
2.21

Financial instruments

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

Basic financial assets

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

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

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
 

Page 23

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)


2.21
Financial instruments (continued)

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

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

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

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

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

 
2.22

Dividends

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

Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

Page 24

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported revenues and expenses during the year. However, the nature of estimation means that the actual outcomes could differ from those estimates. The following judgement has had the most significant effect on amounts recognised in the financial statements: 
Measurement of provision for obsolete stock
The stock provision is determined by ageing the stock in conjunction with management's knowledge and experience of stock movements. The provision applied reduces the carrying value to its selling price less costs to sell. Accordingly, provision for impairment is made where the net realisable value is less than the cost based on best estimates by management. The value of stock held at the year end totalled £9,054,478 (2022: £10,419,411), which included impairments of £705,711 (2022: £602,233).


4.


Turnover

The whole of the turnover is attributable to the distribution of home appliance spare parts.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
21,791,603
20,118,128

Rest of Europe
1,002,874
1,035,954

Rest of the world
5,710,833
5,769,057

28,505,310
26,923,139



5.


Other operating income

2023
2022
£
£

Net rents receivable
74,367
70,809



6.


Operating profit

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

2023
2022
£
£

Exchange differences
29,365
(154,489)

Other operating lease rentals
262,576
364,110

(Profit)/loss on disposal of tangible fixed assets
35,166
(26,556)

Page 25

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
7,650
7,285


Fees payable to the Company's auditors in respect of:


The auditing of accounts of associates of the Group pursuant to legislation
21,700
20,705

Taxation compliance services
3,550
3,390

Other non-audit services not included above
4,000
2,800

29,250
26,895


8.


Employees

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


Group
Group
2023
2022
£
£


Wages and salaries
1,769,606
1,813,742

Social security costs
127,350
154,179

Cost of defined contribution scheme
28,164
29,331

1,925,120
1,997,252


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


        2023
        2022
            No.
            No.







Office and management
30
27



Other
37
44

67
71

Page 26

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

8.Employees (continued)

Key Management Personnel
Key management personnel are defined as the directors and the senior management team of the Group. Directors remuneration is disclosed below.
The total emoluments of key management personnel were £242,720 (
2022: £223,998).
The Company has no employees other than the director, who did not receive any remuneration (
2022: £Nil)


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
90,200
90,200

Group contributions to defined contribution pension schemes
1,321
1,321

91,521
91,521


During the year retirement benefits were accruing to 1 director (2022 -1) in respect of defined contribution pension schemes.


10.


Interest receivable

2023
2022
£
£


Bank interest receivable
48
-


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
196,896
116,392

Preference share dividends
122,039
122,039

Finance leases and hire purchase contracts
114
2,772

Other interest payable
13,947
-

332,996
241,203

Page 27

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
259,520
325,279

Adjustments in respect of previous periods
(64,729)
(32,580)


194,791
292,699

Foreign tax


Foreign tax on income for the year
35,428
28,350

Total current tax
230,219
321,049

Deferred tax


Origination and reversal of timing differences
(60,493)
(23,307)

Total deferred tax
(60,493)
(23,307)


Taxation on profit on ordinary activities
169,726
297,742
Page 28

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

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

2023
2022
£
£


Profit on ordinary activities before tax
1,503,518
1,164,195


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
353,649
221,197

Effects of:


Non-tax deductible amortisation of goodwill and impairment
14,286
14,571

Fixed asset differences
84,634
-

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
278
44,704

Adjustments to tax charge in respect of prior periods
(57,895)
(32,580)

Double taxation relief
-
4,343

Loss relief utilised
(257,637)
(29,930)

Other differences leading to an increase (decrease) in the tax charge
(3,017)
47,087

Overseas tax
35,428
28,350

Total tax charge for the year
169,726
297,742


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Dividends

2023
2022
£
£


Dividends paid on equity capital
1,004,551
1,294,968


Preference share dividends
122,039
122,039

1,126,590
1,417,007

Page 29

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

14.


Exceptional items

2023
2022
£
£


Restructuring costs
-
63,892

Restructuring costs comprise business reorganisation and restructuring undertaken by management during the prior period.


15.


Intangible assets

Group





Trademarks
Computer software
Goodwill
Negative goodwill
Total

£
£
£
£
£



Cost


At 1 January 2023
119,264
483,044
679,762
(863,344)
418,726


Additions
-
3,951
-
-
3,951


Disposals
-
(13,346)
-
-
(13,346)



At 31 December 2023

119,264
473,649
679,762
(863,344)
409,331



Amortisation


At 1 January 2023
119,263
99,425
617,600
(863,344)
(27,056)


Charge for the year
1
64,002
62,162
-
126,165


On disposals
-
(13,346)
-
-
(13,346)



At 31 December 2023

119,264
150,081
679,762
(863,344)
85,763



Net book value



At 31 December 2023
-
323,568
-
-
323,568



At 31 December 2022
1
383,619
62,162
-
445,782



Page 30

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

16.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Office equipment
Assets under construction
Total

£
£
£
£
£
£



Cost or valuation


At 1 January 2023
11,950,000
1,324,683
199,637
1,766,005
18,815
15,259,140


Additions
-
57,953
119,815
186,136
146,830
510,734


Disposals
-
-
(108,305)
(12,000)
(60,557)
(180,862)


Transfers between classes
-
80,672
-
-
(80,672)
-


Exchange adjustments
-
1,230
5,119
6,077
-
12,426



At 31 December 2023

11,950,000
1,464,538
216,266
1,946,218
24,416
15,601,438



Depreciation


At 1 January 2023
291,463
1,083,451
154,371
1,496,446
-
3,025,731


Charge for the year
291,463
114,458
28,275
158,766
-
592,962


Disposals
-
-
(108,305)
(2,000)
-
(110,305)


Exchange adjustments
-
4,231
1,967
7,194
-
13,392



At 31 December 2023

582,926
1,202,140
76,308
1,660,406
-
3,521,780



Net book value



At 31 December 2023
11,367,074
262,398
139,958
285,812
24,416
12,079,658



At 31 December 2022
11,658,537
241,232
45,266
269,559
18,815
12,233,409

The property valuation was carried out at 27 April 2022 by Impey & Company. 

Cost or valuation of freehold property at 31 December 2023 is as follows:

Land and buildings
£


At cost
6,500,000
At valuation:

Market value on existing use as valued on 27 April 2022
5,450,000



11,950,000

Page 31

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

           16.Tangible fixed assets (continued)

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2023
2022
£
£

Group


Cost
6,500,000
6,500,000

Accumulated depreciation
(650,000)
(520,000)

Net book value
5,850,000
5,980,000


Company






Freehold property
Office equipment
Total

£
£
£

Cost or valuation


At 1 January 2023
11,950,000
96,279
12,046,279



At 31 December 2023

11,950,000
96,279
12,046,279



Depreciation


At 1 January 2023
291,463
30,890
322,353


Charge for the year on owned assets
291,463
4,814
296,277



At 31 December 2023

582,926
35,704
618,630



Net book value



At 31 December 2023
11,367,074
60,575
11,427,649



At 31 December 2022
11,658,537
65,389
11,723,926

The property valuation was carried out at 27 April 2022 by Impey & Company. 
The cost or valuation of freehold property at 31 December 2023 is consistent with that of the Group as seen above.






Page 32

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

17.


Fixed asset investments

Group





Investments in subsidiary companies
Investment in joint ventures
Total

£
£
£



Cost or valuation


At 1 January 2023
10
68,549
68,559



At 31 December 2023

10
68,549
68,559



Impairment


At 1 January 2023
-
68,549
68,549



At 31 December 2023

-
68,549
68,549



Net book value



At 31 December 2023
10
-
10



At 31 December 2022
10
-
10



Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
4,133,567



At 31 December 2023
4,133,567






Net book value



At 31 December 2023
4,133,567



At 31 December 2022
4,133,567

Page 33

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

Direct subsidiary undertaking


The following was a direct subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Qualtex UK Limited
   Unit 1,
Denton Hall Farm Road, 
Denton, 
Manchester, 
M34 2SX
  World wide distribution of home appliance spare parts
Ordinary
100%


Indirect subsidiary undertakings


The following were indirect subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Qualtex USA Inc
Suites B, C and D,
5275 Westgate Drive SW,
Atlanta,
GA 30336
  World wide distribution of home appliance spare parts
Ordinary
100%
JEGS Electrical Limited
   Unit 1,
Denton Hall Farm Road, 
Denton, 
Manchester, 
M34 2SX
  Dormant
Ordinary
 100%


18.


Stocks

Group
Group
2023
2022
£
£

Finished goods and goods for resale
9,054,478
10,419,411


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

The carrying value of stocks are stated net of impairment losses totalling £705,711 (2022: £602,233). Impairment losses totalling  £103,478 (2022: £66,408) were recognised in profit and loss.

Page 34

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

19.


Debtors

Group

Group
As restated
Company

Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
1,936,563
1,710,095
-
-

Amounts owed by group undertakings
-
-
4,188,397
4,100,437

Amounts owed by associated undertakings
73,191
136,839
-
-

Other debtors
1,198,226
352,045
-
-

Prepayments and accrued income
271,871
441,136
-
-

3,479,851
2,640,115
4,188,397
4,100,437



20.


Cash and cash equivalents

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

Cash at bank and in hand
530,247
655,918
1,597
10,069

Less: bank overdrafts
(18,623)
(37,622)
-
-

511,624
618,296
1,597
10,069


Page 35

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

21.


Creditors: Amounts falling due within one year

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

Revolving credit facility
2,500,000
2,500,000
-
-

Bank overdrafts
18,623
37,622
-
-

Invoice discounting facility
50,802
557,767
-
-

Trade creditors
1,186,909
2,041,564
-
-

Amounts owed to other participating interests
17,229
-
-
-

Corporation tax
273,768
331,974
35,481
34,987

Other taxation and social security
511,509
405,334
-
-

Obligations under finance lease and hire purchase contracts
10,420
-
-
-

Other creditors
342
55,618
-
-

Accruals and deferred income
325,742
227,272
21,021
21,021

Share capital treated as debt
8,407,841
8,407,841
8,407,841
8,407,841

13,303,185
14,564,992
8,464,343
8,463,849


Disclosure of the terms and conditions attached to the non-equity shares is made in note 25.
Invoice financing facilities are secured on the debtor balance of Qualtex UK Limited.
The bank overdraft and the revolving credit facility ("RCF") are secured by way of a debenture including a fixed and floating charge over the Group's assets.
The RCF, a £3million facility, attracts interest based on SONIA plus a margin of 2.1% per annum when utilised.
Net obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.


22.


Creditors: Amounts falling due after more than one year

Group
Group
2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
15,769
-


Net obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.

Page 36

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within one year
10,420
-

Between 1-5 years
15,769
-

26,189
-


24.


Deferred taxation


Group



2023
2022


£

£






Liability at beginning of year
2,327,000
2,287,807


Credited to profit or loss
(60,493)
(23,307)


Charged to other comprehensive income
-
62,500



Liability at end of year
2,266,507
2,327,000

Company


2023
2022


£

£






Liability beginning of year
2,203,171
2,127,357


Charged to profit or loss
(864)
13,314


Charged to other comprehensive income
-
62,500



Liability at end of year
2,202,307
2,203,171

Group

Group
Company

Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
76,650
137,143
12,450
13,314

On revaluations
2,189,857
2,189,857
2,189,857
2,189,857

2,266,507
2,327,000
2,202,307
2,203,171

Page 37

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

25.


Share capital

2023
2022
£
£
Shares classified as equity

Allotted, called up and fully paid



90 (2022 -90) Ordinary shares of £1.00 each
90
90
5 (2022 -5) Ordinary A shares of £1.00 each
5
5
5 (2022 -5) Ordinary B shares of £1.00 each
5
5

100

100

2023
2022
£
£
Shares classified as debt

Allotted, called up and fully paid



7,067,840 (2022 -7,067,840) Preference A shares of £1.00 each
7,067,840
7,067,840
1,340,000 (2022 -1,340,000) Preference B shares of £1.00 each
1,340,000
1,340,000
1 (2022 -1) Preference C share of £1.00
1
1

8,407,841

8,407,841


The A ordinary and B ordinary shares carry one vote per share and rank pari passu. Dividends are declared at the discretion of the directors.
The redemption of preference shares shall be solely at the discretion of the Company acting by the directors and the holders of the preference shares shall have no right to require redemption at any time, other than in the event of a change in ownership. No premium is payable on redemption. The preference shares carry no voting rights. The dividend rights are as follows:
-  A preference - a dividend of 0.5% per annum, accruing daily and payable on 30 June annually.
-  B preference - as with A preference shares, but after A regarding distribution.
-  C preference - a discretionary dividend of £80,000 per annum, accruing daily and payable on 31 March    annually. Cumulative if unpaid..

Page 38

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

26.


Reserves

Revaluation reserve
The revaluation reserve represents the surplus created on the revaluation of certain categories of fixed assets during the year.
Capital redemption reserve
The capital redemption reserve relates to preference share buy backs.
Foreign exchange reserve
The foreign exchange reserve relates to retranslation gains or losses on the consolidation of foreign subsidiaries.
Profit and loss account
The profit and loss account includes all current and prior period retained profits and losses.


27.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £28,164 (2022: £29,221). Contributions totaling £6,967 (2022: £5,760) were payable to the fund at the balance sheet date and are included in creditors.


28.


Commitments under operating leases

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


Group
Group
2023
2022
£
£

Not later than 1 year
209,546
193,646

Later than 1 year and not later than 5 years
841,560
-

1,051,106
193,646
Page 39

 
Qualtex Global Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

29.


Related party transactions

The company has taken advantage of the exemption in FRS 102 not to disclose transactions entered into between two or more members of a group whereby the subsidiary that is a party to the transaction is wholly owned by a member.
Directors' advances
Included within other debtors is a balance due from directors of the Company, amounting to £928,196 (2022: £314,871). There are no terms and conditions associated with this balance. The maximum amount outstanding during the year was £1,235,772 (2022: £981,096).
Related company - commissions, recharges and loans  
The group was charged commissions, net of recharges of costs, of £746,265 (
2022: £659,324) from a company under common control by virtue of common controlling shareholders. 
Amounts of £Nil (
2022: £24,964) were repaid by that company in respect of loans and costs paid on the related party's behalf. 
At the year end, the group owed £17,229 (
2022: was owed £11,929) to that company in respect of all of these transactions. 
Related company - sales transactions   
The group made sales of £551,171 (
2022: £930,836) to a company under common control by virtue of common controlling shareholders. At the year end, that company owed the group £73,191 (2022: £53,322).


30.


Controlling party

The Group is controlled by P Hulme by virtue of his majority ordinary share holding in Qualtex Global Limited.

 
Page 40