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Sage Accounts Production Advanced 2023 - FRS102_2023
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63,505
1,772
20,882
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COMPANY REGISTRATION NUMBER:
SC058605
Year ended 31 December 2023
Officers and professional advisers |
1 |
|
|
Independent auditor's report to the members |
6 |
|
|
Statement of income and retained earnings |
10 |
|
|
Statement of financial position |
11 |
|
|
Notes to the financial statements |
12 |
|
|
Officers and Professional Advisers |
|
The board of directors |
C N Kegg |
|
L M Kegg |
|
|
Company secretary |
L M Kegg |
|
|
Registered office |
2 Ashley Drive |
|
Bothwell Industrial Estate |
|
Uddingston |
|
Glasgow |
|
G71 8BS |
|
|
Auditor |
Nelson Gilmour Smith |
|
Chartered accountants & statutory auditor |
|
Mercantile Chambers |
|
53 Bothwell Street |
|
Glasgow |
|
G2 6TB |
|
|
Bankers |
Bank of Scotland |
|
Park House Branch |
|
Park Circus Place |
|
Glasgow |
|
G3 6AN |
|
|
Solicitors |
Ness Gallagher |
|
95 Stewarton Street |
|
Wishaw |
|
Lanarkshire |
|
ML2 8AG |
|
|
Year ended 31 December 2023
The Directors in preparing this report, have complied with s414C of the Companies Act 2006.
The company's principal activity during the year was the d
istribution of tools and other equipment to the trades and direct to consumers through internet sales, mail order and the trade counter
.
During the year the company focused towards higher margin sales. However, turnover decreased from £25.7m to £17.6m from sales within the UK and fell from £6.0m to £4.3m from sales outwith the UK amid challenging market conditions arising from Brexit and onging inflationary pressures within the local and EU economy.
The company's loss before taxation amounted to £(326,439) (2022: profit of £53,897) and after taxation £(307,330) (2022: profit of £16,980). An operating loss of £(333,797) arose in the year (2022: profit of £173,987). Both the level of business and year-end statement of financial position were satisfactory in light of economic conditions, and the Directors remain confident about the future prospects for the business as the economy adjusts despite the year's losses in the Statement of Income and Retained Earnings.
One of the key business risks and uncertainties affecting the company is the high volume of stock required to meet the level of product demand, which can be impacted through shifts in consumer demand and also through the wider economic situation through fluctuations in exchange rates. Other key business risks and uncertainties are presented by the ongoing trade negotiations between the UK and EU and by the ongoing inflationary pressures within the local and wider economy. It is likely that these factors will negatively impact turnover in the year to 31 December 2024 and beyond.
The company's operations expose it to a variety of financial risks which include credit risk and foreign currency risk. Credit risk is the risk that a counterparty will be unable to pay amounts when they fall due. The company has implemented policies that ensure appropriate credit checks for all third party debts, including credit insurance for all account customers. The exposure of any individual account is low and the Directors are satisfied that the appropriate controls are in place to minimise credit risk. The company is exposed to foreign currency risk on its purchases of inventory, and sale of goods, denominated in foreign currencies, principally Euros. The risk is managed through the Directors closely monitoring movements in the Euro on a daily basis. The Directors are satisfied that the application of these policies has minimised such exposure for the company.
This report was approved by the board of directors on 10 June 2024 and signed on behalf of the board by:
Registered office: |
2 Ashley Drive |
Bothwell Industrial Estate |
Uddingston |
Glasgow |
G71 8BS |
|
Year ended 31 December 2023
The directors present their report and the financial statements of the company for the year ended
31 December 2023
.
Directors
The directors who served the company during the year were as follows:
C N Kegg |
|
N Bruce |
|
L M Kegg |
|
|
|
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Future developments
The company remains focused on competitive pricing and in developing further operating efficiencies across the business.
Financial instruments
The company did not hold any non-basic financial instruments in the year.
Directors' responsibilities statement
The directors are responsible for preparing the 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, comprising FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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; - 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.
This report was approved by the board of directors on
10 June 2024
and signed on behalf of the board by:
Registered office: |
2 Ashley Drive |
Bothwell Industrial Estate |
Uddingston |
Glasgow |
G71 8BS |
|
Independent Auditor's Report to the Members of
Toolstop Limited |
|
Year ended 31 December 2023
Opinion
We have audited the financial statements of Toolstop Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, statement of financial position and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 31 December 2023 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 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 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 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 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, 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 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: 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: Based on our understanding of the company, we identified the principal risks of non-compliance with laws and regulations and the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated managements incentives and opportunities for the fraudulent manipulation of the financial statements, including the risk of of override of controls. Based on our assessment we adopted a substantive approach to our audit testing. Audit procedures performed included: Testing a sample of transactions to source documentation. We select sample sizes having regard to the inherent risk (specific and general), the quality of the internal controls and the risk that our testing might not detect possible misstatements. Making enquiries of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims. Identifying legislation of particular relevance to the entity and obtaining audit evidence regarding compliance with that legislation. Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. There are inherent limitations in the audit procedures described above. 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 concealment. 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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Andrew Wilson BA CA |
(Senior Statutory Auditor) |
|
For and on behalf of |
Nelson Gilmour Smith |
Chartered accountants & statutory auditor |
Mercantile Chambers |
53 Bothwell Street |
Glasgow |
G2 6TB |
|
11 June 2024
Statement of Income and Retained Earnings |
|
Year ended 31 December 2023
|
2023 |
2022 |
Note |
£ |
£ |
Turnover |
4 |
21,933,476 |
31,646,266 |
|
|
|
|
Cost of sales |
19,104,704 |
27,825,249 |
|
------------- |
------------- |
Gross profit |
2,828,772 |
3,821,017 |
|
|
|
Administrative expenses |
3,162,569 |
3,647,030 |
|
|
------------ |
------------ |
Operating (loss)/profit |
5 |
(
333,797) |
173,987 |
|
|
|
|
Other interest receivable and similar income |
9 |
10,329 |
6 |
Interest payable and similar expenses |
10 |
2,971 |
120,096 |
|
------------ |
------------ |
(Loss)/profit before taxation |
(
326,439) |
53,897 |
|
|
|
|
Tax on (loss)/profit |
11 |
(
19,109) |
36,917 |
|
--------- |
-------- |
(Loss)/profit for the financial year and total comprehensive income |
(
307,330) |
16,980 |
|
--------- |
-------- |
|
|
|
|
Dividends paid and payable |
12 |
(
188,000) |
(
642,500) |
|
|
|
|
Retained earnings at the start of the year |
5,513,169 |
6,138,689 |
|
------------ |
------------ |
Retained earnings at the end of the year |
5,017,839 |
5,513,169 |
|
------------ |
------------ |
|
|
|
All the activities of the company are from continuing operations.
Statement of Financial Position |
|
31 December 2023
Fixed assets
Tangible assets |
13 |
393,388 |
512,291 |
|
|
|
|
Current assets
Stocks |
14 |
4,797,126 |
5,378,306 |
Debtors |
15 |
1,928,862 |
2,446,030 |
Cash at bank and in hand |
567,803 |
102,735 |
|
------------ |
------------ |
|
7,293,791 |
7,927,071 |
|
|
|
|
Creditors: amounts falling due within one year |
16 |
2,594,744 |
2,832,487 |
|
------------ |
------------ |
Net current assets |
4,699,047 |
5,094,584 |
|
------------ |
------------ |
Total assets less current liabilities |
5,092,435 |
5,606,875 |
|
|
|
|
Provisions
Taxation including deferred tax |
17 |
44,395 |
63,505 |
|
------------ |
------------ |
Net assets |
5,048,040 |
5,543,370 |
|
------------ |
------------ |
|
|
|
|
Capital and reserves
Called up share capital |
20 |
30,201 |
30,201 |
Profit and loss account |
21 |
5,017,839 |
5,513,169 |
|
------------ |
------------ |
Shareholders funds |
5,048,040 |
5,543,370 |
|
------------ |
------------ |
|
|
|
|
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the
board of directors
and authorised for issue on
10 June 2024
, and are signed on behalf of the board by:
Company registration number:
SC058605
Notes to the Financial Statements |
|
Year ended 31 December 2023
1.
General information
The company is a private company limited by shares, registered in Scotland and with the registration number
SC058605
. The address of the registered office is 2 Ashley Drive, Bothwell Industrial Estate, Uddingston, Glasgow, G71 8BS.
2.
Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', and the Companies Act 2006.
3.
Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern The accounts have been prepared on a going concern basis.
Disclosure exemptions The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Noel Kegg Limited (SC318609), it's ultimate parent entity
. Noel Kegg Limited's accounts cover the largest and smallest group of undertakings for which group accounts are drawn up and can be obtained from Nelson Gilmour Smith, Mercantile Chambers, 53 Bothwell Street, Glasgow, G2 6TB. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) No disclosure has been given for the aggregate remuneration of key management personnel. Judgements 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. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There were no judgements (apart from those involving estimations) that management made in the process of applying the entity's accounting policies that are of material effect. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. Key assumptions and estimates affecting the company's financial statements are limited to the consideration of rates of depreciation. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are limited to the determination of depreciation methodologies.
At the balance sheet date the carrying amount of fixed assets was £393,388 (2022: £512,291), while the depreciation charged in the year amounted to £127,399 (2022: £139,196).
Revenue recognition 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. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, 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.
Foreign currencies Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
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.
Tangible assets Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
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:
|
Leasehold improvements |
- |
10% straight line |
|
Plant and machinery |
- |
10% straight line |
|
Equipment |
- |
25% reducing balance |
|
Motor vehicles |
- |
25% reducing balance |
|
|
|
|
Leasehold improvements includes expenditure on integral features and other enhancements to the leasehold property. Notwithstanding the fact that the lease expires in less than 10 years, the Directors consider that depreciating leasehold improvements over 10 years is the most appropriate basis.
Impairment of fixed assets 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. For the purposes of impairment testing, 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 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 stock to its present location and condition.
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 as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity 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. Basic financial instruments include Cash and cash equivalents, trade debtors, and trade creditors. Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or loss and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. Short term trade 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. Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured subsequently at amortised cost using the effective interest method. 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. 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. Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
The company operates a defined contribution pension scheme for Directors and key employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.
4.
Turnover
Turnover arises from:
|
2023 |
2022 |
|
£ |
£ |
Sale of goods |
21,933,476 |
31,644,166 |
Rendering of services |
– |
2,100 |
|
------------- |
------------- |
|
21,933,476 |
31,646,266 |
|
------------- |
------------- |
|
|
|
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
|
2023 |
2022 |
|
£ |
£ |
United Kingdom |
17,602,891 |
25,687,940 |
Outwith UK sales |
4,330,585 |
5,958,326 |
|
------------- |
------------- |
|
21,933,476 |
31,646,266 |
|
------------- |
------------- |
|
|
|
5.
Operating (loss)/profit
Operating profit or loss is stated after charging/crediting:
|
2023 |
2022 |
|
£ |
£ |
Depreciation of tangible assets |
127,399 |
139,196 |
Gains on disposal of tangible assets |
(
16,165) |
(
21,747) |
Impairment of trade debtors |
17,420 |
59,299 |
Foreign exchange differences |
(
10,870) |
(
29,087) |
|
--------- |
--------- |
|
|
|
6.
Auditor's remuneration
|
2023 |
2022 |
|
£ |
£ |
Fees payable for the audit of the financial statements |
7,400 |
6,350 |
|
------- |
------- |
|
|
|
Fees payable to the company's auditor and its associates for other services:
Other non-audit services |
8,800 |
9,200 |
|
------- |
------- |
|
|
|
7.
Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
|
2023 |
2022 |
|
No. |
No. |
Administrative staff |
48 |
59 |
Management staff |
4 |
7 |
|
---- |
---- |
|
52 |
66 |
|
---- |
---- |
|
|
|
The aggregate payroll costs incurred during the year, relating to the above, were:
|
2023 |
2022 |
|
£ |
£ |
Wages and salaries |
1,862,628 |
2,259,152 |
Social security costs |
179,013 |
238,744 |
Other pension costs |
65,457 |
74,648 |
|
------------ |
------------ |
|
2,107,098 |
2,572,544 |
|
------------ |
------------ |
|
|
|
8.
Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
|
2023 |
2022 |
|
£ |
£ |
Remuneration |
8,000 |
24,707 |
Company contributions to defined contribution pension plans |
79 |
323 |
|
------- |
-------- |
|
8,079 |
25,030 |
|
------- |
-------- |
|
|
|
The number of directors who accrued benefits under company pension plans was as follows:
|
2023 |
2022 |
|
No. |
No. |
Defined contribution plans |
1 |
3 |
|
---- |
---- |
|
|
|
9.
Other interest receivable and similar income
|
2023 |
2022 |
|
£ |
£ |
Interest on loans and receivables |
769 |
– |
Interest on cash and cash equivalents |
9,560 |
6 |
|
-------- |
---- |
|
10,329 |
6 |
|
-------- |
---- |
|
|
|
10.
Interest payable and similar expenses
|
2023 |
2022 |
|
£ |
£ |
Interest due to group undertakings |
– |
120,096 |
Other interest payable and similar charges |
2,971 |
– |
|
------- |
--------- |
|
2,971 |
120,096 |
|
------- |
--------- |
|
|
|
11.
Tax on (loss)/profit
Major components of tax (income)/expense
Current tax:
UK current tax expense |
– |
37,975 |
|
|
|
Deferred tax:
Origination and reversal of timing differences |
(
19,109) |
(
1,058) |
|
-------- |
-------- |
Tax on (loss)/profit |
(
19,109) |
36,917 |
|
-------- |
-------- |
|
|
|
Reconciliation of tax (income)/expense
The tax assessed on the (loss)/profit on ordinary activities for the year is higher than (2022: higher than) the
standard rate of corporation tax in the UK
of
25
% (2022:
19
%).
|
2023 |
2022 |
|
£ |
£ |
(Loss)/profit on ordinary activities before taxation |
(
326,439) |
53,897 |
|
--------- |
-------- |
(Loss)/profit on ordinary activities by rate of tax |
(
81,610) |
10,240 |
Effect of expenses not deductible for tax purposes |
1,220 |
580 |
Effect of capital allowances and depreciation |
11,675 |
26,097 |
Unused tax losses |
37,855 |
– |
Surrender of tax losses to group companies |
11,751 |
– |
|
--------- |
-------- |
Tax on (loss)/profit |
(
19,109) |
36,917 |
|
--------- |
-------- |
|
|
|
12.
Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
|
2023 |
2022 |
|
£ |
£ |
Dividends on equity shares - Ordinary B |
– |
450,000 |
Dividends on equity shares - Ordinary C |
188,000 |
192,500 |
|
--------- |
--------- |
|
188,000 |
642,500 |
|
--------- |
--------- |
|
|
|
13.
Tangible assets
|
Leasehold improvements |
Plant and machinery |
Equipment |
Motor vehicles |
Total |
|
£ |
£ |
£ |
£ |
£ |
Cost |
|
|
|
|
|
At 1 January 2023 |
1,017,931 |
226,086 |
436,926 |
69,295 |
1,750,238 |
Additions |
3,400 |
1,885 |
6,227 |
– |
11,512 |
Disposals |
– |
(
30,157) |
– |
– |
(
30,157) |
|
------------ |
--------- |
--------- |
-------- |
------------ |
At 31 December 2023 |
1,021,331 |
197,814 |
443,153 |
69,295 |
1,731,593 |
|
------------ |
--------- |
--------- |
-------- |
------------ |
Depreciation |
|
|
|
|
|
At 1 January 2023 |
667,513 |
177,803 |
366,984 |
25,647 |
1,237,947 |
Charge for the year |
81,838 |
16,617 |
18,032 |
10,912 |
127,399 |
Disposals |
– |
(
27,141) |
– |
– |
(
27,141) |
|
------------ |
--------- |
--------- |
-------- |
------------ |
At 31 December 2023 |
749,351 |
167,279 |
385,016 |
36,559 |
1,338,205 |
|
------------ |
--------- |
--------- |
-------- |
------------ |
Carrying amount |
|
|
|
|
|
At 31 December 2023 |
271,980 |
30,535 |
58,137 |
32,736 |
393,388 |
|
------------ |
--------- |
--------- |
-------- |
------------ |
At 31 December 2022 |
350,418 |
48,283 |
69,942 |
43,648 |
512,291 |
|
------------ |
--------- |
--------- |
-------- |
------------ |
|
|
|
|
|
|
14.
Stocks
|
2023 |
2022 |
|
£ |
£ |
Finished goods and goods for resale |
4,797,126 |
5,378,306 |
|
------------ |
------------ |
|
|
|
15.
Debtors
|
2023 |
2022 |
|
£ |
£ |
Trade debtors |
1,723,410 |
2,343,794 |
Prepayments and accrued income |
158,219 |
62,582 |
Other debtors |
47,233 |
39,654 |
|
------------ |
------------ |
|
1,928,862 |
2,446,030 |
|
------------ |
------------ |
|
|
|
16.
Creditors:
amounts falling due within one year
|
2023 |
2022 |
|
£ |
£ |
Payments received on account |
38,750 |
– |
Trade creditors |
635,737 |
1,750,460 |
Amounts owed to group undertakings |
1,563,874 |
427,592 |
Accruals and deferred income |
67,186 |
44,217 |
Corporation tax |
2,971 |
37,975 |
Social security and other taxes |
285,895 |
570,912 |
Director loan accounts |
331 |
1,331 |
|
------------ |
------------ |
|
2,594,744 |
2,832,487 |
|
------------ |
------------ |
|
|
|
In respect of overdraft facilities, Lloyds Bank Commercial Finance Limited has been granted a bond and floating charge over the whole of the company's assets. This ranks behind Bank of Scotland PLC's standard security and floating charge over the the whole of the company's assets, together with a bond and floating charge over the whole of the company's parent Noel Kegg Limited's assets. No sums were due to Lloyds Banking Group or Bank of Scotland at the year end (2022: £Nil).
Amounts owed to group undertakings are interest free (2022: interest bearing at 6%), are unsecured, and repayable on demand. Amounts owed to related parties are unsecured, interest-free, and repayable on demand. Amounts owed to trade creditors are payable in accordance with terms agreed with the supplier
.
17.
Provisions
|
Deferred tax (note 18) |
|
£ |
At 1 January 2023 |
63,505 |
Additions |
1,772 |
Unused amounts reversed |
(
20,882) |
|
-------- |
At 31 December 2023 |
44,395 |
|
-------- |
|
|
18.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
|
2023 |
2022 |
|
£ |
£ |
Included in provisions (note 17) |
44,395 |
63,505 |
|
-------- |
-------- |
|
|
|
The deferred tax account consists of the tax effect of timing differences in respect of:
|
2023 |
2022 |
|
£ |
£ |
Accelerated capital allowances |
44,395 |
63,505 |
|
-------- |
-------- |
|
|
|
In the absence of any assets sales or purchases, it is expected that deferred tax liabilities of £
16,097
will be reversed in the year to 31 December 2024. This reversal is expected due to the anticipated rate of depreciation of the relevant assets being greater than the relevant Corporation Tax Writing Down Allowances on the same.
Deferred tax has been calculated on the basis of a 25% Rate of Corporation Tax (2022: 25%).
19.
Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £
65,457
(2022: £
74,648
).
20.
Called up share capital
Issued, called up and fully paid
|
2023 |
2022 |
|
No. |
£ |
No. |
£ |
Ordinary shares of £ 1 each |
30,001 |
30,001 |
30,001 |
30,001 |
Ordinary B shares of £ 1 each |
100 |
100 |
100 |
100 |
Ordinary C shares of £ 1 each |
100 |
100 |
100 |
100 |
|
-------- |
-------- |
-------- |
-------- |
|
30,201 |
30,201 |
30,201 |
30,201 |
|
-------- |
-------- |
-------- |
-------- |
|
|
|
|
|
Ordinary shares are entitled to one vote per share in any circumstances, have equal rights to capital in the event of winding up and equal rights to dividend distributions. Ordinary B shares and Ordinary C shares have no rights attached to them in terms of voting and no rights to participate in a capital distribution in the event of winding up. Shares have rights to dividend distributions as determined by the Directors.
21.
Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses
.
22.
Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
|
2023 |
2022 |
|
£ |
£ |
|
Not later than 1 year |
97,586 |
172,586 |
|
Later than 1 year and not later than 5 years |
5,082 |
91,939 |
|
|
--------- |
--------- |
|
|
102,668 |
264,525 |
|
|
--------- |
--------- |
|
|
|
|
The company leased 2 Ashley Drive in the year, the property from which it trades, for £150,000 (2022: £150,000), and a secondary depot for £22,021 (2022: £22,587).
23.
Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
|
2023 |
|
|
Balance brought forward |
Advances/ (credits) to the directors |
Amounts repaid |
Balance outstanding |
|
|
£ |
£ |
£ |
£ |
|
N Bruce |
(
1,331) |
189,000 |
(
188,000) |
(
331) |
|
|
------- |
--------- |
--------- |
---- |
|
|
|
|
|
|
|
2022 |
|
|
Balance brought forward |
Advances/ (credits) to the directors |
Amounts repaid |
Balance outstanding |
|
|
£ |
£ |
£ |
£ |
|
N Bruce |
(
1,331) |
192,500 |
(
192,500) |
(
1,331) |
|
|
------- |
--------- |
--------- |
------- |
|
|
|
|
|
|
Loans to and from directors are interest free, unsecured and are repayable on demand.
24.
Related party transactions
During the year
Ashley Ventures SSAS
, a Post-Employment Benefit Plan operated for the benefit of the company's Directors, charged the company rent
for use of the property Toolstop Limited
trades from of £ 150,000
(2022: £ 150,000
). The balance owed to Noel Kegg Limited
at the statement of financial position date amounted to £ 1,563,874
(2022: £ 427,592
). The loan bears interest at 0% per annum (2022: 6% per annum), is unsecured, and is repayable on demand. Dividends of £nil were paid to Noel Kegg Limited in the year (2022: £ 450,000
). During the year the company made purchases from Toolporters Limited
, a company under the common control of Noel Kegg Limited, of £ 743,424
(2022: £nil). During the year the Directors
, who constitute the entirety the key management personnel of the company, received aggregate dividends of £ 94,000
(2022: £ 96,250
). Other remuneration received by the directors is disclosed in Note 9 to the Financial Statements. During the year other related parties
received aggregate salaries
of £ 33,835
(2022: £ 20,532
), aggregate dividends of £ 94,000
(2022: £ 96,250
), and aggregate pension contributions
of £ 965
(2022: £ 358
).
25.
Controlling party
During the year, the company operated under the control of parent entity
Noel Kegg Limited
, a company registered in Scotland (SC318609). The ultimate controlling party of Toolstop Limited is Director C. Kegg
, by virtue of his shareholdings in Noel Kegg Limited.