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Registration number: 00214637

A.E.Spink Limited

Annual Report and Financial Statements

for the Year Ended 30 November 2023

 

A.E.Spink Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 25

 

A.E.Spink Limited

Company Information

Directors

Mr Matthew Harrison

Mr Nicholas Harrison

Mrs Pamela Harrison

Mr Christopher Meek

Mr Simon Biltcliffe

Mr Paul Irwin

Company secretary

Mr Nicholas Harrison

Registered office

Kelham Street
Doncaster
South Yorkshire
DN1 3RA

Auditors

Hawsons Chartered Accountants
Statutory Auditor
5 Sidings Court
White Rose Way
Doncaster
South Yorkshire
DN4 5NU

 

A.E.Spink Limited

Strategic Report for the Year Ended 30 November 2023

The directors present their strategic report for the year ended 30 November 2023.

Fair review of the business and Key performance indicators

The directors consider the level of activity and the year end financial position to be satisfactory.

2023 saw an increase in the level of operating activity with turnover increasing 3.8% from £60,800,409 to £63,080,656. All areas of the business continued to perform well despite an increase in competitor activity.

Operating margins have remained consistent at 25%.

Non financial KPI's are the number of employees 163 in 2023 (150 in 2022), this is used to measure staff retention.

Principal risks and uncertainties

Despite its increase in turnover confidence in the economy continues to ebb and flow. The directors remain cautiously optimistic and are continuing with expansion plans.

The flexibility of our Company means we are able to make the most of every opportunity.

Section 172 Companies Act 2006

The board of directors consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1) Companies Act 2006) in the decisions taken during the year ended 30 November 2023.

A.E Spink Limited are committed to being a responsible business. The core values that underpin our strategy and objectives are to do the right thing, aim high, care about the environment and treat people fairly. This is demonstrated and actively encouraged in dealings with A.E Spink Limited staff, customers, suppliers and stakeholders in the wider community. Internal communications play a key part in keeping the company staff engaged and aligned to the overall strategy, the Managing Directors provides regular updates to employees to ensure that timely and consistent messages are provided to all employees.

As the Board of Directors, our intention is to behave responsibly and ensure that management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours and in doing so, will contribute to the delivery of our plan. The intention is to nurture our reputation, through both the construction and delivery of our plan, that reflects our responsible behaviour.

As the Board of Directors, our intention is to behave responsibly toward our stakeholders and treat them fairly and equally, so they too may benefit from the successful delivery of our plan.

These items are given as examples of the Directors’ application of the principles of s172 Companies Act across the year, and is not an exhaustive list.

Approved by the Board on 30 July 2024 and signed on its behalf by:

Mr Nicholas Harrison
Company secretary and director

   
     
 

A.E.Spink Limited

Directors' Report for the Year Ended 30 November 2023

The directors present their report and the financial statements for the year ended 30 November 2023.

Directors of the company

The directors who held office during the year were as follows:

Mr Matthew Harrison

Mr Nicholas Harrison - Company secretary and director

Mrs Pamela Harrison

Mr Christopher Meek

Mr Simon Biltcliffe

Mr Paul Irwin

Principal activity

The principal activity of the company is builders' and plumbers' merchants.

Information included in the Strategic Report

Detailed information in respect of fair review of the business, KPIs and principal risks and uncertainties can be found in the strategic report and form part of this report by cross-reference.

Employment of disabled persons

Disabled persons are employed by the company when they appear to be suited to a particular vacancy and every effort is made to ensure they are given full and fair consideration when such vacancies arise. Training will be given so that employees, who have been injured or become disabled in the course of their employment, can where possible, continue employment with the company.

Employee involvement

The company undertakes to keep employees abreast of major strategic developments within the company.

CO2E Emissions Disclosure

A.E. Spink Limited continue to measure scope 1 and 2 emissions in order to calculate the carbon footprint. This includes the following:
- Office, electricity & gas
- Fuel used by the fleet (operational team vehicles)

A.E. Spink Limited use the government published conversion factors to convert energy units into tonnes of carbon dioxide equivalent (C02e) which is a widely recognised indicator of an organisation's performance.

A.E. Spink Limited's target is to achieve a year-on-year reduction of CO2 emissions driving to zero.

Category

FY2022/23 CO2e

FY2021/22 CO2e

Office electricity & gas

98

102

Fuel used by fleet (operational team vehicles)

1,148

1,014

Total

1,246

1,116

 

A.E.Spink Limited

Directors' Report for the Year Ended 30 November 2023

Going concern

After due consideration of all relevant factors, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Directors' liabilities

The company has granted an indemnity to one or more of its directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in section 234 of the Companies Act 2006. Such qualifying third party indemnity provision remains in force as at the date of approving the directors’ report.

Disclosure of information to the auditors

Each director of the company who held office at the date of the approval of this Annual Report as set out above, each confirms that:

• so far as they are aware, there is no relevant audit information (information needed by the company's auditors in connection with preparing their report) of which the company's auditors are unaware, and

• they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Reappointment of auditors

The auditors Hawsons Charted Accountants are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved by the Board on 30 July 2024 and signed on its behalf by:

.........................................
Mr Nicholas Harrison
Company secretary and director

 

A.E.Spink Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

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

 

A.E.Spink Limited

Independent Auditor's Report to the Members of A.E.Spink Limited

Opinion

We have audited the financial statements of A.E.Spink Limited (the 'company') for the year ended 30 November 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows, and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the company's affairs as at 30 November 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor 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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

 

A.E.Spink Limited

Independent Auditor's Report to the Members of A.E.Spink Limited

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our 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 Statement of Directors' Responsibilities set out on page 5, 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.

Irrgularities, 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:
 

 

A.E.Spink Limited

Independent Auditor's Report to the Members of A.E.Spink Limited

The company is subject to laws and regulations that directly and indirectly affect the financial statements. Based on our understanding of the company and the environment it operates within, we determined that the laws and regulations which were most significant included FRS 102, Companies Act 2006 and Health and Safety regulations. We considered the extent to which non-compliance with these laws and regulations might have a material effect on the financial statements, including how fraud might occur. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries to improve the company’s result for the period, and management bias in key accounting estimates.

Audit procedures performed by the engagement team included:

Discussions with management and those responsible for legal compliance procedures within the company to obtain an understanding of the legal and regulatory framework applicable to the company and how the company complies with that framework, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud and non-compliance with laws and regulations;

Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to bad debts;

Identifying and testing journal entries, in particular, journal entries posted with unusual account combinations or posted by senior management.

There are inherent limitations in the audit procedures described above and the more removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-fi/description- of-the-auditor’s-responsibilities-for. This description forms part of our auditor’s report.

 

A.E.Spink Limited

Independent Auditor's Report to the Members of A.E.Spink Limited

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.

......................................
Daniel Wood (Senior Statutory Auditor)
For and on behalf of Hawsons Chartered Accountants, Statutory Auditor

5 Sidings Court
White Rose Way
Doncaster
South Yorkshire
DN4 5NU

1 August 2024

 

A.E.Spink Limited

Statement of Comprehensive Income for the Year Ended 30 November 2023

Note

2023
 £

2022
 £

Turnover

63,080,656

60,800,409

Cost of sales

 

(47,031,695)

(45,648,021)

Gross profit

 

16,048,961

15,152,388

Administrative expenses

 

(11,935,705)

(10,272,557)

Other operating income

2

-

8,532

Operating profit

 

4,113,256

4,888,363

Other interest receivable and similar income

4

307,011

49,601

Interest payable and similar charges

5

(3,091)

-

Profit before tax

 

4,417,176

4,937,964

Taxation

9

(1,064,681)

(924,228)

Profit for the financial year

 

3,352,495

4,013,736

Total comprehensive profit for the year

 

3,352,495

4,013,736

The above results were derived from continuing operations.

 

A.E.Spink Limited

(Registration number: 00214637)

Balance Sheet as at 30 November 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

10

5,559,619

5,659,028

Investments

11

352

352

 

5,559,971

5,659,380

Current assets

 

Stocks

12

8,078,386

9,054,292

Debtors

13

12,238,825

11,722,851

Cash at bank and in hand

14

9,444,358

5,669,825

 

29,761,569

26,446,968

Creditors: Amounts falling due within one year

15

(10,669,094)

(10,627,286)

Net current assets

 

19,092,475

15,819,682

Total assets less current liabilities

 

24,652,446

21,479,062

Creditors: Amounts falling due after more than one year

15

-

(98,339)

Provisions for liabilities

17

(545,746)

(561,780)

Net assets

 

24,106,700

20,818,943

Capital and reserves

 

Called up share capital

19

12,950

12,950

Share premium reserve

400

400

Capital redemption reserve

13,650

13,650

Profit and loss account

24,079,700

20,791,943

Total equity

 

24,106,700

20,818,943

These financial statements were approved and authorised for issue by the Board on 30 July 2024 and signed on its behalf by:
 

.........................................

Mr Nicholas Harrison

Company secretary and director

 

A.E.Spink Limited

Statement of Changes in Equity for the Year Ended 30 November 2023

Share capital
£

Share premium
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 December 2022

12,950

400

13,650

20,791,943

20,818,943

Profit for the year

-

-

-

3,352,495

3,352,495

Total comprehensive income

-

-

-

3,352,495

3,352,495

Dividends

-

-

-

(64,738)

(64,738)

At 30 November 2023

12,950

400

13,650

24,079,700

24,106,700

Share capital
£

Share premium
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 December 2021

12,950

400

13,650

16,829,259

16,856,259

Profit for the year

-

-

-

4,013,736

4,013,736

Total comprehensive income

-

-

-

4,013,736

4,013,736

Dividends

-

-

-

(51,052)

(51,052)

At 30 November 2022

12,950

400

13,650

20,791,943

20,818,943

 

A.E.Spink Limited

Statement of Cash Flows for the Year Ended 30 November 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

3,352,495

4,013,736

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

3

737,536

656,883

Profit/(loss) on disposal of tangible fixed assets - operating expense

 

(5,747)

(70,419)

Finance income

4

(307,011)

(49,601)

Finance costs

5

3,091

-

Income tax expense

9

1,064,681

924,228

 

4,845,045

5,474,827

Working capital adjustments

 

Decrease/(increase) in stocks

12

975,906

(2,144,276)

Increase in debtors

13

(515,974)

(1,366,829)

Increase in creditors

15

85,984

1,739,717

Cash generated from operations

 

5,390,961

3,703,439

Income taxes paid

9

(1,117,073)

(892,202)

Net cash flow from operating activities

 

4,273,888

2,811,237

Cash flows from investing activities

 

Interest received

4

307,011

49,601

Acquisitions of tangible assets

(713,418)

(1,131,359)

Proceeds from sale of tangible assets

 

81,038

127,290

Net cash flows from investing activities

 

(325,369)

(954,468)

Cash flows from financing activities

 

Interest paid

5

(3,091)

-

Payments to finance lease creditors

 

(106,157)

(207,466)

Dividends paid

(64,738)

(51,052)

Net cash flows from financing activities

 

(173,986)

(258,518)

Net increase in cash and cash equivalents

 

3,774,533

1,598,251

Cash and cash equivalents at 1 December

 

5,669,825

4,071,574

Cash and cash equivalents at 30 November

14

9,444,358

5,669,825

 

A.E.Spink Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

1

Accounting policies

A.E.Spink Limited is a private company, limited by shares, domiciled in England and Wales, company number 00214637. The registered office is at Kelham Street, Doncaster, South Yorkshire, DN1 3RA.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that, as disclosed in the accounting policies, certain items are shown at fair value.

Group accounts have not been prepared as the company's subsidiary is permitted to be excluded from group accounts by virtue of sections 402 and 405 of the Companies Act 2006. These financial statements therefore present information about the company as an individual undertaking and not about its group.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Going concern

After due consideration of all relevant factors, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Judgements

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

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

Government grants

Grants that do not impose specified future performance-related conditions are recognised in income when the grant proceeds are received or receivable. Grants that impose specified future performance-related conditions are recognised in income only when the performance-related conditions are met. Grants received before the revenue recognition criteria are satisfied are recognised as a liability.

 

A.E.Spink Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

Tax

The tax expense for the period comprises current and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from the profit as reported in the statement of comprehensive income because of items of income or expense that are deductible in other years and items that are never taxable or deductible.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax shall be recognised in respect of all timing differences at the reporting date, except as otherwise required by FRS102. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Unrelieved tax losses and other deferred tax assets shall be recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold buildings

2% straight line

Plant, machinery and vehicles

15% reducing balance

Motor vehicles

25% reducing balance

Office equipment

15% reducing balance

Computer equipment

30% reducing balance

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

The Company operates a defined contribution pension scheme. Contributions to defined contribution plans are recognised in the profit and loss account in the period in which they become payable in accordance with the rules of the scheme.

Financial instruments

 

A.E.Spink Limited

Notes to the Financial Statements for the Year Ended 30 November 2023


Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as 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. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the statement of comprehensive income.
 

Rebates receivable on purchases and paid on sales are recognised at the point at which the target has been reached and the rebate becomes unconditional.

Stocks

Stock is valued at the lower of average cost (including allowance for any rebates receivable) and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs.

Investments

Fixed asset investments re stated at historical cost less provision for any diminution in value.

Rebates

2

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
 £

2022
 £

Rents

-

8,532

3

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

737,536

656,883

Profit on disposal of property, plant and equipment

(5,747)

(70,419)

 

A.E.Spink Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

4

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

307,011

49,224

Other interest income

-

377

307,011

49,601

5

Interest payable and similar expenses

2023
£

2022
£

Interest expense on other finance liabilities

3,091

-

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

6,438,331

5,714,766

Social security costs

921,118

683,699

Pension costs, defined contribution scheme

190,660

85,634

7,550,109

6,484,099

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
 No.

2022
 No.

Administration and support

13

12

Distribution and sales

150

138

163

150

 

A.E.Spink Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

1,243,923

1,092,236

Contributions paid to money purchase schemes

94,827

18,600

1,338,750

1,110,836

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

3

3

In respect of the highest paid director:

2023
£

2022
£

Remuneration

286,279

316,439

8

Auditors' remuneration

2023
£

2022
£

Non-audit services - accountancy and payroll

17,185

16,550

Auditors remuneration

16,000

15,000

33,185

31,550

 

A.E.Spink Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

9

Taxation

Tax charged/(credited) in the income statement

2023
£

2022
£

Current taxation

UK corporation tax

1,080,715

890,108

Deferred taxation

Arising from origination and reversal of timing differences

(16,034)

34,120

Tax expense in the income statement

1,064,681

924,228

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 23% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

4,417,176

4,937,964

Corporation tax at standard rate

1,015,950

938,213

Effect of expense not deductible in determining taxable profit (tax loss)

51,657

21,534

Increase from effect of tax incentives

7,498

-

Tax decrease from effect of capital allowances and depreciation

(10,424)

(35,519)

Total tax charge

1,064,681

924,228

 

A.E.Spink Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

10

Tangible assets

Land and buildings
£

Plant, equipment and vehicles
£

Total
£

Cost

At 1 December 2022

4,092,620

5,371,999

9,464,619

Additions

42,120

671,298

713,418

Disposals

-

(169,105)

(169,105)

At 30 November 2023

4,134,740

5,874,192

10,008,932

Depreciation

At 1 December 2022

995,230

2,810,361

3,805,591

Charge for the year

81,196

656,340

737,536

Eliminated on disposal

-

(93,814)

(93,814)

At 30 November 2023

1,076,426

3,372,887

4,449,313

Carrying amount

At 30 November 2023

3,058,314

2,501,305

5,559,619

At 30 November 2022

3,097,390

2,561,638

5,659,028

Included within the net book value of land and buildings above is £3,058,314 (2022 - £3,097,390) in respect of freehold land and buildings. Freehold land and buildings includes £432,894 (2021 - £432,894) relating to freehold land.
 

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2023
£

2022
£

Plant and machinery

121,826

417,384

     
 

A.E.Spink Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

11

Investments

2023
 £

2022
 £

Other investments

352

352

£

Cost

At 1 December 2022 and 30 November 2023

352

Carrying amount

At 30 November 2023

352

At 30 November 2022

352

Details of undertakings

Details of the investments, included within the above, in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Country of incorporation

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Leslie Mann (Bricks & Blocks) Limited

England

Ordinary

100%

100%

Subsidiary undertakings

Leslie Mann (Bricks & Blocks) Limited

The principal activity of Leslie Mann (Bricks & Blocks) Limited is that of a dormant company.

12

Stocks

2023
£

2022
£

Other inventories

8,078,386

9,054,292

 

A.E.Spink Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

13

Debtors

2023
£

2022
£

Trade debtors

12,052,678

11,551,604

Other debtors

600

600

Prepayments

185,547

170,647

12,238,825

11,722,851

14

Cash and cash equivalents

2023
£

2022
£

Cash at bank

9,444,358

5,669,825

15

Creditors

2023
£

2022
£

Due within one year

Loans and borrowings

14,112

21,930

Trade creditors

7,345,427

7,321,284

Social security and other taxes

983,876

893,859

Other payables

778,591

954,317

Accruals

982,484

834,934

Corporation tax liability

564,604

600,962

10,669,094

10,627,286

Due after one year

Loans and borrowings

-

98,339

16

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Hire purchase contracts

-

98,339

2023
£

2022
£

Current loans and borrowings

Hire purchase contracts

14,112

21,930

Finance lease liabilities are secured against the assets to which they relate.

 

 

A.E.Spink Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

17

Provisions for liabilities

Deferred tax
£

At 1 December 2022

561,780

Increase in existing provisions

(16,034)

At 30 November 2023

545,746

18

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £190,660 (2022 - £85,634).

 

A.E.Spink Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

19

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary of £1 each

9,843

9,843

9,843

9,843

Preference of £1 each

3,107

3,107

3,107

3,107

 

12,950

12,950

12,950

12,950

Rights, preferences and restrictions

Ordinary £1 shares have the following rights, preferences and restrictions:
Each share is entitled to one vote in any circumstances.

Preference £1 shares have the following rights, preferences and restrictions:
No right to vote, dividend payments on shares linked to Consumer Price Index.

 

A.E.Spink Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

20

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

14,964

28,979

Later than one year and not later than five years

-

99,254

14,964

128,233

Operating leases

The total of future minimum lease payments is as follows:

2023
 £

2022
 £

Not later than one year

119,500

134,500

Later than one year and not later than five years

228,625

323,125

Later than five years

325,000

350,000

The amount of non-cancellable operating lease payments recognised as an expense during the year was £134,500 (2022 - £134,500).

21

Commitments

Capital commitments

The total amount contracted for but not provided in the financial statements was £Nil (2022 - £Nil).

22

Related party transactions

Mrs P Harrison, Mr C Meek, Mr P Irwin and Mr S Biltcliffe had sales ledger balances owing £32, (£63), £247 and £65 respectively. Mr P Irwin has a loan owing £250. These were normal trading transactions and settled within normal trading terms.

No interest is charged in respect of these balances.

Mr S Biltcliffe has a loan from the company, owing £2,000.

The company is renting premises from the directors' pension fund at £73,500 a year.

The company is a member of PHG and H&B Buying Groups.

Dividends
Dividends totalling £64,738 (2022 - £51,052) were paid to the director P Harrison during the year.

23 Ultimate controlling party

Ultimate controlling parties are Mr N Harrison and Mr M Harrison due to their majority shareholding in the company.