Company registration number 00139002 (England and Wales)
WIGHTMAN & PARRISH LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
WIGHTMAN & PARRISH LIMITED
COMPANY INFORMATION
Directors
Mrs P J Parrish
Mr N B Parrish
Mr L J Boon
(Appointed 18 September 2023)
Secretary
Mrs P J Parrish
Company number
00139002
Registered office
Station Road Industrial Estate
Hailsham
East Sussex
BN27 2QA
Auditor
Knill James LLP
One Bell Lane
Lewes
East Sussex
BN7 1JU
Business address
Station Road Industrial Estate
Hailsham
East Sussex
BN27 2QA
Bankers
Barclays Bank Plc
1 Churchill Place
London
E14 5HP
WIGHTMAN & PARRISH LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
WIGHTMAN & PARRISH LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
Principal activities and review of the business
The principal activity of the company continued to be that of distributors of cleaning, hygiene, and healthcare products, equipment and servicing.
Review of 2023
2023 saw growth for the company with some new business wins across a number of sectors. Unfortunately the Department of Health and Social Care (DHSC) continued to supply and deliver free personal protective equipment (PPE) to the Adult Social Care (ASC) Sector, which has suppressed sales in this sector.
Stock adjustment
Due to the free provision, the company still had significant remaining stocks of pandemic PPE at the end of 2022. The company continued to sell this excess PPE to other sectors during 2023, with a positive effect on gross profit and net profit.
Plans for the future
The free PPE by the DHSC to the Adult Social Care Sector came to an end, in March 2024 and this will mean all PPE procured during the pandemic will be sold by the end of 2024.
Principal risks and uncertainties
The principal risks and uncertainties that the company faces are a disaster at the business premises, a sudden increase in costs of stocks and fuel, or possibly a disruption to fuel supplies and/or goods from Manufacturers.
Key performance indicators
The directors consider the main key performance indicators to be: Sales, Gross profit, Stock availability, Orders, Deliveries, Salaries, Live Customers, Debtors, Creditors, Cash and Credit Notes Issued. Ratios are calculated from these main key performance indicators.
Other information and explanations
Michael Parrish
The sad news in 2023, was the death of Michael Parrish who had joined the Board in 1959 and took the company into the market where it is today. He stepped down from the board shortly before he died. Lawrence Boon joined the Board in September 2023.
Mr N B Parrish
Director
27 August 2024
WIGHTMAN & PARRISH LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Results and dividends
The results for the year are set out on page 7.
The directors recommend payment of an ordinary interim dividend of £4.00 per share.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr M R Parrish deceased
(Resigned 14 August 2023)
Mrs P J Parrish
Mr N B Parrish
Mr L J Boon
(Appointed 18 September 2023)
Auditor
In accordance with the company's articles, a resolution proposing that Knill James LLP be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr N B Parrish
Director
27 August 2024
WIGHTMAN & PARRISH LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors are responsible for preparing the strategic Report, directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 then apply them consistently;
make judgements 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.
WIGHTMAN & PARRISH LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WIGHTMAN & PARRISH LIMITED
- 4 -
Opinion
We have audited the financial statements of Wightman & Parrish Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and 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 31 December 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.
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.
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
WIGHTMAN & PARRISH LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WIGHTMAN & PARRISH LIMITED
- 5 -
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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
WIGHTMAN & PARRISH LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WIGHTMAN & PARRISH LIMITED
- 6 -
In identifying and assessing the risk of material misstatement in respect of irregularities, including fraud, we:
obtained an understanding of the nature of the sector, including the legal and regulatory framework that the company operates in and how the company complies with the legal and regulatory framework;
inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; and
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Companies Act 2006, the company's governing document, compliance with ISO’s accreditation and relevant tax legislation. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements, including the Directors' report, remaining alert to new or unusual transactions which may not be in accordance with the governing document.
The most significant laws and regulations that have an indirect impact on the financial statements are the compliance with relevant employment law, health and safety regulations and the UK General Data Protection Regulation (UK GDPR). We performed audit procedures to inquire of management and those charged with governance whether the company is in compliance with these laws and regulations and inspected correspondence with regulatory authorities.
We identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included, but were not limited to, testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
J. Christopher Ketley FCA (Senior Statutory Auditor)
For and on behalf of Knill James LLP
28 August 2024
Chartered Accountants
Statutory Auditor
One Bell Lane
Lewes
East Sussex
BN7 1JU
WIGHTMAN & PARRISH LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
12,850,928
11,354,090
Cost of sales
(8,413,277)
(7,164,092)
Gross profit
4,437,651
4,189,998
Administrative expenses
(3,501,692)
(3,168,921)
Other operating income
12,319
Operating profit
4
948,278
1,021,077
Interest receivable and similar income
7
171,166
40,657
Profit before taxation
1,119,444
1,061,734
Tax on profit
8
(202,995)
(216,924)
Profit for the financial year
916,449
844,810
WIGHTMAN & PARRISH LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,240,469
2,210,566
Investments
12
1
1
2,240,470
2,210,567
Current assets
Stocks
15
1,232,339
1,620,398
Debtors
16
1,432,196
1,390,948
Cash at bank and in hand
4,923,441
4,087,992
7,587,976
7,099,338
Creditors: amounts falling due within one year
17
(1,905,309)
(2,043,549)
Net current assets
5,682,667
5,055,789
Total assets less current liabilities
7,923,137
7,266,356
Provisions for liabilities
Deferred tax liability
18
10,316
73,984
(10,316)
(73,984)
Net assets
7,912,821
7,192,372
Capital and reserves
Called up share capital
20
49,100
49,100
Share premium account
21
4,236
4,236
Capital redemption reserve
21
2,100
2,100
Profit and loss reserves
21
7,857,385
7,136,936
Total equity
7,912,821
7,192,372
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 27 August 2024 and are signed on its behalf by:
Mr N B Parrish
Director
Company registration number 00139002 (England and Wales)
WIGHTMAN & PARRISH LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
49,100
4,236
2,100
6,409,626
6,465,062
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
844,810
844,810
Dividends
9
-
-
-
(117,500)
(117,500)
Balance at 31 December 2022
49,100
4,236
2,100
7,136,936
7,192,372
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
916,449
916,449
Dividends
9
-
-
-
(196,000)
(196,000)
Balance at 31 December 2023
49,100
4,236
2,100
7,857,385
7,912,821
WIGHTMAN & PARRISH LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
1,158,649
1,216,271
Taxes paid
(180,079)
(49,134)
Net cash inflow from operating activities
978,570
1,167,137
Investing activities
Purchase of tangible fixed assets
(222,641)
(196,583)
Proceeds from disposal of tangible fixed assets
30,854
16,559
Interest received
171,166
40,657
Net cash used in investing activities
(20,621)
(139,367)
Financing activities
Dividends paid
(122,500)
(19,500)
Net cash used in financing activities
(122,500)
(19,500)
Net increase in cash and cash equivalents
835,449
1,008,270
Cash and cash equivalents at beginning of year
4,087,992
3,079,722
Cash and cash equivalents at end of year
4,923,441
4,087,992
WIGHTMAN & PARRISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Wightman & Parrish Limited is a private company limited by shares incorporated in England and Wales. The registered office is Station Road Industrial Estate, Hailsham, East Sussex, BN27 2QA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
The financial statements present information about the company as an individual entity and not about its group as the directors believe that the subsidiary company is not material to these financial statements.
1.2
Going concern
The directors have assessed whether the going concern basis of preparation continues to be appropriate, based on whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. true
At the time of approving the financial statements the directors believe that all appropriate measures have been or will be taken to ensure that the company will be able to continue its operations for at least the next 12 months and thus conclude that the going concern basis remains appropriate.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.4
Tangible fixed assets
Tangible fixed assets are measured at cost net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Land and buildings Freehold
2% straight line
Plant and machinery
20% straight line
Computers
33 1/3% straight line
Motor vehicles
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
WIGHTMAN & PARRISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
WIGHTMAN & PARRISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and other receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Trade debtors with no stated interest rate and receivable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables with no stated interest rate or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss accounts in administrative expenses.
WIGHTMAN & PARRISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
WIGHTMAN & PARRISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.13
Retirement benefits
The company contributes to defined contribution pension schemes for its staff. The schemes provide money purchase and lump sum benefits payable to members on their retirement or to their dependants on death before retirement. The assets of the schemes are held separately from those of the company in independently administered funds. Contributions charged to the defined contribution schemes are charged to the profit and loss account when they become payable.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
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.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Depreciation and amortisation
The company exercises judgement to determine useful lives and residual values of intangibles, property, plant and equipment. The assets are depreciated down to their residual values over their estimated useful lives.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
12,850,928
11,354,090
2023
2022
£
£
Other revenue
Interest income
171,166
40,657
WIGHTMAN & PARRISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 16 -
The total turnover of the company for the year has been derived from its principal activity undertaken in the United Kingdom.
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(183)
(473)
Fees payable to the company's auditor for the audit of the company's financial statements
12,600
12,200
Depreciation of owned tangible fixed assets
192,738
150,590
Profit on disposal of tangible fixed assets
(30,854)
(11,500)
Operating lease charges
2,113
335
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Administration
12
13
Distribution
23
24
Sales
14
13
Services
2
2
Purchasing
2
2
Total
53
54
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
1,760,411
1,709,112
Social security costs
163,586
175,779
Pension costs
122,910
92,307
2,046,907
1,977,198
WIGHTMAN & PARRISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
216,583
202,380
Company pension contributions to defined contribution schemes
60,000
40,000
276,583
242,380
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
169,484
38,821
Other interest income
1,682
1,836
Total income
171,166
40,657
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
169,484
38,821
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
266,647
180,080
Adjustments in respect of prior periods
16
1,029
Total current tax
266,663
181,109
Deferred tax
Origination and reversal of timing differences
(63,668)
35,815
Total tax charge
202,995
216,924
WIGHTMAN & PARRISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 18 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
1,119,444
1,061,734
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
263,293
201,729
Permanent capital allowances in excess of depreciation
(39,523)
(49,241)
Depreciation on assets not qualifying for tax allowances
45,333
28,612
Other non-reversing timing differences
(2,456)
(1,020)
Under/(over) provided in prior years
16
1,029
Deferred tax charge
(63,668)
35,815
Taxation charge for the year
202,995
216,924
9
Dividends
2023
2022
£
£
Final paid
196,000
117,500
10
Intangible fixed assets
Goodwill
Intellectual Property
Other intangible
Total
£
£
£
£
Cost
At 1 January 2023 and 31 December 2023
182,896
25,000
1
207,897
Amortisation and impairment
At 1 January 2023 and 31 December 2023
182,896
25,000
1
207,897
Carrying amount
At 31 December 2023
At 31 December 2022
WIGHTMAN & PARRISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
11
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
2,763,164
491,642
299,802
571,543
4,126,151
Additions
21,552
14,201
186,888
222,641
Disposals
(75,666)
(75,666)
At 31 December 2023
2,784,716
491,642
314,003
682,765
4,273,126
Depreciation and impairment
At 1 January 2023
874,651
454,838
271,469
314,627
1,915,585
Depreciation charged in the year
55,488
11,724
17,048
108,478
192,738
Eliminated in respect of disposals
(75,666)
(75,666)
At 31 December 2023
930,139
466,562
288,517
347,439
2,032,657
Carrying amount
At 31 December 2023
1,854,577
25,080
25,486
335,326
2,240,469
At 31 December 2022
1,888,513
36,804
28,333
256,916
2,210,566
12
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
13
1
1
Fair value of financial assets carried at amortised cost
Unlisted investments are measured at cost less impairment on the basis that they represent shares in entities that are not publicly traded and the fair value cannot otherwise be measured reliably.
13
Subsidiaries
Details of the company's subsidiary at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Medirite Limited
United Kingdom
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Medirite Limited
1
WIGHTMAN & PARRISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
14
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,289,694
1,266,571
Carrying amount of financial liabilities
Measured at amortised cost
1,465,285
1,632,577
Financial assets
Financial assets that are debt instruments measured at amortised cost comprise of trade debtors and other debtors.
Financial liabilities
Financial liabilities measured at amortised cost comprise trade creditors, obligations under finance leases, dividends payable, other creditors and accruals.
15
Stocks
2023
2022
£
£
Finished goods and goods for resale
1,232,339
1,620,398
Stock recognised in cost of sales during the year as an expense was £8,413,277 (2022 - £7,164,092).
16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,283,901
1,260,778
Other debtors
5,793
5,793
Prepayments and accrued income
142,502
124,377
1,432,196
1,390,948
17
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
811,206
1,159,409
Corporation tax
266,647
180,063
Other taxation and social security
173,377
230,909
Dividends payable
196,000
122,500
Other creditors
197,739
130,499
Accruals and deferred income
260,340
220,169
1,905,309
2,043,549
WIGHTMAN & PARRISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
ACAs
10,316
73,984
2023
Movements in the year:
£
Liability at 1 January 2023
73,984
Credit to profit or loss
(63,668)
Liability at 31 December 2023
10,316
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
122,910
92,307
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary 'A' shares of £1 each
49,000
49,000
49,000
49,000
Ordinary 'B' shares of £1 each
100
100
100
100
49,100
49,100
49,100
49,100
Ordinary 'B' shares rank pari passu to ordinary 'A' shares except that they have no voting rights.
21
Reserves
Share premium
The share premium account represents the premium arising on the issue of shares net of issue costs.
Capital redemption reserve
The capital redemption reserve represents amounts paid by the company on the purchase of its own shares.
WIGHTMAN & PARRISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Reserves
(Continued)
- 22 -
Profit and loss reserves
The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.
22
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows:
2023
2022
£
£
Aggregate compensation
290,219
269,983
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Other related parties
478,361
539,077
34,607
40,074
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Other related parties
27,475
47,240
23
Directors' transactions
Dividends totalling £104,000 (2022 - £72,500) were paid in the year in respect of shares held by the company's directors.
24
Ultimate controlling party
The directors control the company. All shares are held by family members.
WIGHTMAN & PARRISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
25
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
916,449
844,810
Adjustments for:
Taxation charged
202,995
216,924
Investment income
(171,166)
(40,657)
Gain on disposal of tangible fixed assets
(30,854)
(11,500)
Depreciation and impairment of tangible fixed assets
192,738
150,590
Movements in working capital:
Decrease/(increase) in stocks
388,059
(294,900)
Increase in debtors
(41,248)
(2,919)
(Decrease)/increase in creditors
(298,324)
353,923
Cash generated from operations
1,158,649
1,216,271
26
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
4,087,992
835,449
4,923,441
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