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Company registration number: NI031984
HERON MANUFACTURE LIMITED
AUDITED FINANCIAL STATEMENTS
31 August 2023
HERON MANUFACTURE LIMITED
FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2023
_________________________________________________________________________________________
Contents
Directors and other information
Strategic report
Directors report
Independent auditor's report to the members
Profit and Loss Account
Balance sheet
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
HERON MANUFACTURE LIMITED
FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2023
_________________________________________________________________________________________
Directors Mr Michael Heron (Resigned 31 March 2024)
Mr Damian Heron
Mr Martin Blaney
Mr Neil Bradley
Mr Damien O'Callaghan
Secretary Mr Neil Bradley
Company number NI031984
Registered office 69 Drum Road
Cookstown
Co Tyrone
BT80 8QS
Auditor Kelly & O'Neill Ltd
15E Molesworth Street
Cookstown
Co Tyrone
BT80 8NX
Bankers Ulster Bank Limited
12 William Street
Cookstown
Co Tyrone
BT80 8AE
HERON MANUFACTURE LIMITED
STRATEGIC REPORT
PERIOD ENDED 31 AUGUST 2023
_______________________________________________________________________________
Fair review of the business
The principal activity of the company continued to be that of manufacturing. Annualised turnover increased by 41% for the 15 month period end 31 August 2023.
Prinicapl risk and uncertanties
The Directors have identified the following areas of risk and uncertainty:
Health and Safety
The comany recognises the importance of managing occupational health, safety, welfare and wellbeing throughout all our operations and activities. We regard it as an integral component to our overall business strategy and of paramount importance in the operation of the business. The Directors are continuously reviewing and investing to ensure that risks in this area are minimised and controlled. This commitment extends throughout all our sites, premises, operations and activities, and to staff, sub-contractors and other persons who may be affected by our undertakings.
Inflation
The effects of Brexit, Covid-19 and the war in Ukraine continue to create inflationary pressures on the market and the Board continually review contract duration and terms to ensure the company's exposure is always mitigated.
Health & Wellbeing
The Board's key priority is always the health & wellbeing of our staff, their families, our clients, value chain and the communities within which we work. Through continual open communication with all staff members, we ensure we protect the financial, mental and physical well-being of our staff whilst maintaining excellent relationships with our clients, value chain and the communities within which we work.
Environment, social and governance
The Board fully recognise the significance of environmental risk and have employed resources to manage the risk effectively. The Company cares about the environment in all its forms. As a fundamental part of the business the Company ensures it maintains an awareness its operations have on the environment and measures its activities against industry recognised key performance indicators to ensure minimal impact. The Board's approach to social value is embedded in all of the companys operations and is a daily priority of line management. Our commitment to social and community issues is applied Company wide. This means that we:
" Seek to encourage social inclusion within the company, our value chain and in all the communities in which the Company undertakes activities and to operate in an ethical manner with all its stakeholders.
" Comply as a minimum with all the applicable legislation and ensure that our social stewardship meets or exceeds industry best practice.
" Manage our business in a fair and equitable manner, meeting our social responsibilities both as a direct and indirect employer.
" Afford equality of opportunity.
" Deal responsibly with our suppliers and customers in accordance with our Code of Business Conduct and proper business practice.
" Provide suitable and sufficient training to all employees and relevant sub-contractors, where appropriate, in all aspects of their responsibilities to the Company.
" Have a zero-tolerance approach to Human Trafficking and continue our awareness programme as part of our Modern Slavery Policy
The companys ESG strategy is led by the Board with support from our Senior Management Team, ESG Manager and Human Resources Associate Director to ensure ownership, commitment and full implementation across our organisation around our growing environmental, social and governance commitments.
Quality
Quality is the heart of our company culture and has been instilled for almost 70 years of family business and extensive repeat business. The Company continually develops its Quality Management Systems and following significant continued investment has successfully implemented an advanced digital transformation programme that is further improving the quality of the projects we deliver, providing end users buildings they can feel proud of, are built to the highest standards, use best products/materials, provide excellent whole life value for money and excellent exemplar for future projects.
This report was approved by the board of directors on .................. and signed on behalf of the board by:
Mr Damian Heron
Director
HERON MANUFACTURE LIMITED
DIRECTORS REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
_________________________________________________________________________________________
The directors present their report and the financial statements of the company for the period ended 31 August 2023.
Directors
The directors who served the company during the period were as follows:
Mr Michael Heron (Resigned 31 March 2024)
Mr Damian Heron
Mr Martin Blaney
Mr Neil Bradley
Mr Damien O'Callaghan
Dividends
The directors do not recommend the payment of a dividend.
Future developments
THe company beleives that its performance will continue to improve at pace as a reuslt of ongoping investment, research and development.
Financial instruments
THe company's activities expose it to a number of financail risks, principally credit risk. The board reviews and agrees policies for the prudent management of financail risk
Directors responsibilities statement
The directors are responsible for preparing the strategic report, directors report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial period. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 20 August 2024 and signed on behalf of the board by:
Mr Damian Heron
Director
HERON MANUFACTURE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF
HERON MANUFACTURE LIMITED (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
_________________________________________________________________________________________
Opinion
We have audited the financial statements of Heron Manufacture Limited (the 'company') for the period ended 31 August 2023 which comprise the Profit and Loss Account, Balance Sheet, statement of changes in equity, statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the company's affairs as at 31 August 2023 and of its profit for the period then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and the returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We obtained an understanding of the legal and regulatory framework applicable to the company through enquiry of management, industry research and the application of cumulative audit knowledge. We identified the following principal laws and regulations relevant to the company - Companies Act 2006 and the Financial Reporting Standard applicable to the UK and Republic of Ireland (FRS102). We developed an understanding of the key fraud risks to the entity (including how fraud might occur), the controls in place to help mitigate those risks, and the accounts, balances and disclosures within the financial statements which may be susceptible to management bias. Our understanding was obtained through review of the financial statements for significant accounting estimates, analysis of journal entries, walkthrough of the key controls system in place and enquiry of management. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Cathal O'Neill FCA (Senior Statutory Auditor)
For and on behalf of
Kelly & O'Neill Ltd
Chartered Accountants and Registered Auditors
15E Molesworth Street
Cookstown
Co Tyrone
BT80 8NX
20 August 2024
HERON MANUFACTURE LIMITED
PROFIT AND LOSS ACCOUNT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
______________________________________________________________________________
Period Year
ended ended
31/08/23 31/05/22
Note £ £
Turnover 4 14,979,726 8,474,301
Cost of sales ( 13,095,212) ( 5,837,990)
_______ _______
Gross profit 1,884,514 2,636,311
Administrative expenses ( 2,933,501) ( 1,869,283)
Other operating income 5 125,663 57,417
_______ _______
Operating (loss)/profit 6 ( 923,324) 824,445
Income from shares in group undertakings 8 7,420,908 -
Interest payable and similar expenses 9 ( 272,074) ( 88,496)
_______ _______
Profit before taxation 6,225,510 735,949
Tax on profit - -
_______ _______
Profit for the financial period and total comprehensive income 6,225,510 735,949
_______ _______
All the activities of the company are from continuing operations.
HERON MANUFACTURE LIMITED
BALANCE SHEET (CONTINUED)
31 AUGUST 2023
_________________________________________________________________________________________
31/08/23 31/05/22
Note £ £ £ £
Fixed assets
Tangible assets 11 3,208,947 1,795,463
_______ _______
3,208,947 1,795,463
Current assets
Stocks 12 2,283,537 1,032,684
Debtors 13 5,191,175 1,808,080
Cash at bank and in hand 253,485 1,864,831
_______ _______
7,728,197 4,705,595
Creditors: amounts falling due
within one year 14 ( 3,713,495) ( 5,594,299)
_______ _______
Net current assets/(liabilities) 4,014,702 ( 888,704)
_______ _______
Total assets less current liabilities 7,223,649 906,759
Creditors: amounts falling due
after more than one year 15 ( 15,873) ( 75,433)
_______ _______
Net assets 7,207,776 831,326
_______ _______
Capital and reserves
Called up share capital 18 648,940 498,000
Profit and loss account 6,558,836 333,326
_______ _______
Shareholders funds 7,207,776 831,326
_______ _______
These financial statements were approved by the board of directors and authorised for issue on 20 August 2024 , and are signed on behalf of the board by:
Mr Damian Heron
Director
Company registration number: NI031984
HERON MANUFACTURE LIMITED
STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
_________________________________________________________________________________
Called up share capital Profit and loss account Total
£ £ £
At 1 September 2021 498,000 ( 402,623) 95,377
Profit for the period 735,949 735,949
_______ _______ _______
Total comprehensive income for the period - 735,949 735,949
_______ _______ _______
At 31 May 2022 and 1 June 2022 498,000 333,326 831,326
Profit for the period 6,225,510 6,225,510
_______ _______ _______
Total comprehensive income for the period - 6,225,510 6,225,510
Issue of shares 150,940 150,940
_______ _______ _______
Total investments by and distributions to owners 150,940 - 150,940
_______ _______ _______
At 31 August 2023 648,940 6,558,836 7,207,776
_______ _______ _______
HERON MANUFACTURE LIMITED
STATEMENT OF CASH FLOWS
PERIOD ENDED 31 AUGUST 2023
________________________________________________________________________________________
Period Year
ended ended
31/08/23 31/05/22
£ £
Cash flows from operating activities
Profit for the financial period 6,225,510 735,949
Adjustments for:
Depreciation of tangible assets 445,828 309,160
Income from shares in group undertakings ( 7,420,908) -
Interest payable and similar expenses 272,074 88,496
Accrued expenses/(income) 652,119 -
Changes in:
Stocks ( 1,250,853) ( 419,910)
Trade and other debtors ( 3,383,095) 184,927
Trade and other creditors ( 2,530,813) 1,564,326
_______ _______
Cash generated from operations ( 6,990,138) 2,462,948
Interest paid ( 272,074) ( 88,496)
Tax paid ( 3,870) -
_______ _______
Net cash (used in)/from operating activities ( 7,266,082) 2,374,452
_______ _______
Cash flows from investing activities
Purchase of tangible assets ( 1,859,312) ( 556,038)
Dividends received 7,420,908 -
_______ _______
Net cash from/(used in) investing activities 5,561,596 ( 556,038)
_______ _______
Cash flows from financing activities
Proceeds from issue of ordinary shares 150,940 -
Payment of finance lease liabilities ( 57,800) ( 48,187)
_______ _______
Net cash from/(used in) financing activities 93,140 ( 48,187)
_______ _______
Net increase/(decrease) in cash and cash equivalents ( 1,611,346) 1,770,227
Cash and cash equivalents at beginning of period 1,864,831 94,604
_______ _______
Cash and cash equivalents at end of period 253,485 1,864,831
_______ _______
HERON MANUFACTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023
_________________________________________________________________________________________
1. General information
The company is a private company limited by shares, registered in Northern Ireland. The address of the registered office is 69 Drum Road, Cookstown, Co Tyrone, BT80 8QS.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The company maintains the continued support of related companies, and as a result the directors consider it appropriate to adopt the going concern basis in preparing the Financial Statements.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
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 profit or loss.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery - 10 % straight line
Fittings fixtures and equipment - 25 % straight line
Motor vehicles - 25 % straight line
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Hire purchase and finance leases
Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
Period Year
ended ended
31/08/23 31/05/22
£ £
Sale of goods 14,979,726 8,474,301
_______ _______
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
Period Year
ended ended
31/08/23 31/05/22
£ £
Other operating income 125,663 57,417
_______ _______
6. Operating profit
Operating profit is stated after charging/(crediting):
Period Year
ended ended
31/08/23 31/05/22
£ £
Depreciation of tangible assets 445,828 309,160
Impairment of trade debtors 12,000 9,600
Foreign exchange differences 19,537 ( 1,251)
_______ _______
7. Staff costs
The aggregate payroll costs incurred during the period were:
Period Year
ended ended
31/08/23 31/05/22
£ £
Wages and salaries 3,891,890 1,684,752
Other pension costs 949 35,624
_______ _______
3,892,839 1,720,376
_______ _______
8. Income from shares in group undertakings
Period Year
ended ended
31/08/23 31/05/22
£ £
Dividends from shares in group undertakings 7,420,908 (-)
_______ _______
9. Interest payable and similar expenses
Period Year
ended ended
31/08/23 31/05/22
£ £
Loans from group undertakings 272,074 75,323
Other loans made to the company:
Finance leases and hire purchase contracts - 13,173
_______ _______
272,074 88,496
_______ _______
10. Earnings per share
Basic earnings/(loss) per share
The earnings/(loss) and weighted average number of shares used in the calculation of basic earnings/(loss) per share are as follows:
Period Year
ended ended
31/08/23 31/05/22
£ £
Profit for the period attributable to the owners of the company 6,225,510 735,949
_______ _______
Diluted earnings/(loss) per share
The earnings/(loss) and weighted average number of shares used in the calculation of diluted earnings/(loss) per share are as follows:
Period Year
ended ended
31/08/23 31/05/22
£ £
Earnings/(loss) used in calculation of basic earnings/(loss) per share 6,225,510 735,949
_______ _______
11. Tangible assets
Plant and machinery Fixtures, fittings and equipment Motor vehicles Total
£ £ £ £
Cost
At 1 June 2022 3,276,811 530,034 140,851 3,947,696
Additions 459,121 123,458 78,284 660,863
Transfers 1,065,193 21,858 111,398 1,198,449
_______ _______ _______ _______
At 31 August 2023 4,801,125 675,350 330,533 5,807,008
_______ _______ _______ _______
Depreciation
At 1 June 2022 1,669,752 380,766 101,715 2,152,233
Charge for the year 298,561 115,344 31,923 445,828
_______ _______ _______ _______
At 31 August 2023 1,968,313 496,110 133,638 2,598,061
_______ _______ _______ _______
Carrying amount
At 31 August 2023 2,832,812 179,240 196,895 3,208,947
_______ _______ _______ _______
At 31 May 2022 1,607,059 149,268 39,136 1,795,463
_______ _______ _______ _______
12. Stocks
31/08/23 31/05/22
£ £
Finished goods and goods for resale 2,283,537 1,032,684
_______ _______
13. Debtors
31/08/23 31/05/22
£ £
Trade debtors 4,356,477 1,651,726
Amounts owed by group undertakings 524,699 -
Prepayments and accrued income 134,059 715
Other debtors 175,940 155,639
_______ _______
5,191,175 1,808,080
_______ _______
14. Creditors: amounts falling due within one year
31/08/23 31/05/22
£ £
Trade creditors 2,044,412 584,957
Accruals and deferred income 652,119 -
Corporation tax ( 3,870) -
Social security and other taxes 705,550 218,324
Obligations under finance leases 46,240 44,480
Other creditors 269,044 4,746,538
_______ _______
3,713,495 5,594,299
_______ _______
15. Creditors: amounts falling due after more than one year
31/08/23 31/05/22
£ £
Obligations under finance leases 15,873 75,433
_______ _______
16. Obligations under finance leases
31/08/23 31/05/22
17. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £ 949 (2022: £ 35,624 ).
18. Called up share capital
Issued, called up and fully paid
31/08/23
No £
Ordinary shares shares of £ 1.00 each 648,940 648,940
_______ _______
19. Analysis of changes in net debt
At 1 June 2022 Cash flows At 31 August 2023
£ £ £
Cash and cash equivalents 1,864,831 (1,611,346) 253,485
Debt due within one year (44,480) (1,760) (46,240)
Debt due after one year (75,433) 59,560 (15,873)
_______ _______ _______
1,744,918 ( 1,553,546) 191,372
_______ _______ _______
20. Controlling party
There is no ultimate controlling party .