REGISTERED NUMBER: 00487461 (England and Wales) |
ALFRED BROWN(WORSTED MILLS) LIMITED |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
REGISTERED NUMBER: 00487461 (England and Wales) |
ALFRED BROWN(WORSTED MILLS) LIMITED |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 | to | 4 |
Report of the Independent Auditors | 5 | to | 8 |
Consolidated Statement of Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 | to | 24 |
ALFRED BROWN(WORSTED MILLS) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
DIRECTORS: |
SECRETARIES: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Chartered Accountants |
3365 The Pentagon |
Century Way |
Thorpe Park |
Leeds |
West Yorkshire |
LS15 8ZB |
BANKERS: | HSBC Bank Plc |
33 Park Row |
Leeds |
West Yorkshire |
LS1 1LD |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 30th November 2023. |
REVIEW OF BUSINESS |
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. The review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face. |
The group generated a pre-tax profit of £558,120. |
The group has net assets of £6.56 million with no net borrowings or debt. Net cash funds at the year end remain very healthy at £1.76m |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the execution of the group's strategy are subject to a number of risks. |
The key business risks and uncertainties affecting the group are considered to relate to competition from overseas producers and variable wool prices within an overall uncertain retail environment arising from economic and geo-political factors. |
There is also a risk associated with foreign exchange due to volatility of foreign exchange rates which could have an impact on the group's reported results. This is due to the increasing level of overseas trading and is mitigated through the use of foreign currency bank accounts and where appropriate forward exchange contracts to limit the impacts of the foreign exchange movements. |
KEY PERFORMANCE INDICATORS |
Given the straightforward nature of the business, it is believed that analysis using KPIs is not necessary for an understanding of the development, performance or position of the business. |
ON BEHALF OF THE BOARD: |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30th November 2023. |
DIVIDENDS |
Interim dividends per share were paid as follows: |
Ordinary £1 shares | £2 | - 13th November 2023 |
'A' Ordinary £1 shares | £2 | - 13th November 2023 |
The directors recommend that no final dividends be paid. |
The total distribution of dividends for the year ended 30th November 2023 will be £ 146,864 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st December 2022 to the date of this report. |
A W Brown |
M A Brown |
I J Brown |
A N Brown |
R D H McArdle - (resigned - 5th July 2024) |
J M Handley |
B L Brown |
N A Brown |
FINANCIAL INSTRUMENTS |
The group's financial statements comprise of borrowings such as secured overdrafts, advance receipts in respect of the ordinary activities of the group, cash and liquid resources and various other items such as trade debtors and trade creditors that also arise directly from its operations. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- select suitable accounting policies 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
AUDITORS |
The auditors, Thomas Coombs Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ALFRED BROWN(WORSTED MILLS) LIMITED |
Opinion |
We have audited the financial statements of Alfred Brown(Worsted Mills) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30th November 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30th November 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ALFRED BROWN(WORSTED MILLS) LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ALFRED BROWN(WORSTED MILLS) LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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: |
Based on our understanding of the entity and industries in which it operates, we identified the principal risks of non-compliance with laws and regulations related to health and safety, employment legislation and data protection. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, tax legislation and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). |
We assessed the susceptibility of the company's financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls, and ensuring these controls operated as intended. We determined the principal risks were related to posting journal entries to manipulate profits, and management bias in accounting estimates, especially deferred income. |
To address the risk of fraud through management bias and override of controls, we: |
- Performed analytical procedures to identify any unusual or unexpected relationships. |
- Identified and tested journal entries and identified any significant transactions that were unusual or outside the normal course of business. |
- Investigated the rationale behind significant or unusual transactions. |
- Challenged assumptions and judgements made by management in determining significant accounting estimates, in particular in relation to deferred income. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed audit procedures which included, but were not limited to: |
- Agreeing financial statements disclosures to underlying supporting documentation. |
- Discussions with management of known or suspected instances of non-compliance with laws and regulations. |
- Reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors. |
At the completion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance of laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement relating to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ALFRED BROWN(WORSTED MILLS) 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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
3365 The Pentagon |
Century Way |
Thorpe Park |
Leeds |
West Yorkshire |
LS15 8ZB |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 9,315,365 | 9,041,162 |
Cost of sales | 6,725,731 | 5,930,076 |
GROSS PROFIT | 2,589,634 | 3,111,086 |
Administrative expenses | 2,082,880 | 1,859,202 |
506,754 | 1,251,884 |
Other operating income | 23,284 | 62,023 |
OPERATING PROFIT | 5 | 530,038 | 1,313,907 |
Interest receivable and similar income | 6 | 28,082 | 402 |
PROFIT BEFORE TAXATION | 558,120 | 1,314,309 |
Tax on profit | 7 | 130,299 | 272,877 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 427,821 | 1,041,432 |
Profit attributable to: |
Owners of the parent | 427,821 | 1,041,432 |
Total comprehensive income attributable to: |
Owners of the parent | 427,821 | 1,041,432 |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
CONSOLIDATED BALANCE SHEET |
30TH NOVEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 894,817 | 969,535 |
Investments | 11 | - | - |
894,817 | 969,535 |
CURRENT ASSETS |
Stocks | 12 | 3,232,981 | 3,562,898 |
Debtors | 13 | 1,581,527 | 1,776,282 |
Cash at bank and in hand | 1,759,187 | 1,714,959 |
6,573,695 | 7,054,139 |
CREDITORS |
Amounts falling due within one year | 14 | 803,956 | 1,649,131 |
NET CURRENT ASSETS | 5,769,739 | 5,405,008 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 6,664,556 | 6,374,543 |
PROVISIONS FOR LIABILITIES | 15 | 109,639 | 100,581 |
NET ASSETS | 6,554,917 | 6,273,962 |
CAPITAL AND RESERVES |
Called up share capital | 16 | 73,432 | 73,432 |
Capital redemption reserve | 17 | 126,568 | 126,568 |
Retained earnings | 17 | 6,354,917 | 6,073,962 |
SHAREHOLDERS' FUNDS | 6,554,917 | 6,273,962 |
The financial statements were approved by the Board of Directors and authorised for issue on 22nd July 2024 and were signed on its behalf by: |
A N Brown - Director |
I J Brown - Director |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
COMPANY BALANCE SHEET |
30TH NOVEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Capital redemption reserve | 17 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 308,132 | 931,804 |
The financial statements were approved by the Board of Directors and authorised for issue on |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st December 2021 | 73,432 | 5,179,394 | 126,568 | 5,379,394 |
Changes in equity |
Dividends | - | (146,864 | ) | - | (146,864 | ) |
Total comprehensive income | - | 1,041,432 | - | 1,041,432 |
Balance at 30th November 2022 | 73,432 | 6,073,962 | 126,568 | 6,273,962 |
Changes in equity |
Dividends | - | (146,864 | ) | - | (146,864 | ) |
Total comprehensive income | - | 427,821 | - | 427,821 |
Balance at 30th November 2023 | 73,432 | 6,354,919 | 126,568 | 6,554,919 |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st December 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30th November 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30th November 2023 |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 424,164 | (76,420 | ) |
Government grants | (4,840 | ) | 6,000 |
Tax paid | (219,686 | ) | 18,920 |
Net cash from operating activities | 199,638 | (51,500 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (107,569 | ) | (9,694 | ) |
Sale of tangible fixed assets | 50,941 | 900 |
Interest received | 28,082 | 402 |
Net cash from investing activities | (28,546 | ) | (8,392 | ) |
Cash flows from financing activities |
Amount introduced by directors | 20,000 | - |
Amount withdrawn by directors | - | (20,000 | ) |
Equity dividends paid | (146,864 | ) | (146,864 | ) |
Net cash from financing activities | (126,864 | ) | (166,864 | ) |
Increase/(decrease) in cash and cash equivalents | 44,228 | (226,756 | ) |
Cash and cash equivalents at beginning of year | 2 | 1,714,959 | 1,941,715 |
Cash and cash equivalents at end of year | 2 | 1,759,187 | 1,714,959 |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 558,120 | 1,314,309 |
Depreciation charges | 162,202 | 155,233 |
Profit on disposal of fixed assets | (30,857 | ) | (900 | ) |
Government grants | 4,840 | (6,000 | ) |
Finance income | (28,082 | ) | (402 | ) |
666,223 | 1,462,240 |
Decrease/(increase) in stocks | 329,917 | (1,383,248 | ) |
Decrease/(increase) in trade and other debtors | 174,755 | (723,494 | ) |
(Decrease)/increase in trade and other creditors | (746,731 | ) | 568,082 |
Cash generated from operations | 424,164 | (76,420 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30th November 2023 |
30/11/23 | 1/12/22 |
£ | £ |
Cash and cash equivalents | 1,759,187 | 1,714,959 |
Year ended 30th November 2022 |
30/11/22 | 1/12/21 |
£ | £ |
Cash and cash equivalents | 1,714,959 | 1,941,715 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/12/22 | Cash flow | At 30/11/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,714,959 | 44,228 | 1,759,187 |
1,714,959 | 44,228 | 1,759,187 |
Total | 1,714,959 | 44,228 | 1,759,187 |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
1. | STATUTORY INFORMATION |
Alfred Brown(Worsted Mills) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated income statement, balance sheet and cash flow statement include the accounts of the company and its subsidiary undertakings, Brown and Sons (Bramley) Limited and Alfred Brown (Woodhead) Limited. All financial statements are made up to the 30th November 2023. A separate income statement dealing with the results of the company has not been presented, in accordance with the exemptions given in the Companies Act 2006. |
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Going concern basis of accounting |
Based on all available information the directors are satisfied that the group and company has sufficient cash flows to continue to meet its liabilities as they fall due for at least one year from the date of approval of the financial statements, thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
Turnover and revenue recognition |
Turnover represents amounts receivable for goods net of valued added tax and trade discounts. |
Revenue is recognised at the point of delivery to the customer. |
Tangible fixed assets |
Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: |
Freehold property | 2% on cost |
Plant and machinery | 20% on cost and 10% on cost |
Looms | 6.67% on cost |
Fixtures and fittings | 33% on cost and 20% on cost |
Stocks |
Stocks are stated 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 stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences 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 tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are 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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Investments |
Fixed asset investments are stated at cost less provision for diminution in value. |
Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable 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. |
Financial instruments |
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. |
Provisions |
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. |
3. | TURNOVER |
A market analysis of turnover and profit before taxation has not been given, as in the opinion of the directors, it would be seriously prejudicial to the interests of the group. |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,149,566 | 1,910,686 |
Social security costs | 208,748 | 194,818 |
Other pension costs | 139,600 | 26,201 |
2,497,914 | 2,131,705 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management and senior staff | 16 | 17 |
Administration and warehouse | 12 | 11 |
Manufacturing | 48 | 44 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 599,926 | 414,100 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 164,760 | 115,000 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 162,202 | 155,232 |
Profit on disposal of fixed assets | (30,857 | ) | (900 | ) |
Auditors' remuneration | 8,000 | 8,000 |
Auditors' remuneration - |
subsidiary | 3,500 | 3,500 |
Auditors' remuneration for non audit work | 37,218 | 9,296 |
Foreign exchange differences | (6,367 | ) | (11,146 | ) |
Government grants | - | (6,000 | ) |
6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2023 | 2022 |
£ | £ |
Interest receivable | 28,082 | 402 |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 121,241 | 227,943 |
Deferred tax | 9,058 | 44,934 |
Tax on profit | 130,299 | 272,877 |
UK corporation tax has been charged at 23.01 % (2022 - 19 %). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 558,120 | 1,314,309 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.011 % (2022 - 19 %) |
128,429 |
249,719 |
Effects of: |
Expenses not deductible for tax purposes | - | 1,021 |
Prior year underprovision | - | 9,502 |
Depreciation of non qualifying assets | 2,913 | 2,405 |
Effect of changes of tax rate | 720 | 10,784 |
Super deduction claimed | (875 | ) | (554 | ) |
Marginal relief | (888 | ) | - |
Total tax charge | 130,299 | 272,877 |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim | 75,384 | 75,384 |
'A' Ordinary shares of £1 each |
Interim | 71,480 | 71,480 |
146,864 | 146,864 |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1st December 2022 | 647,970 | 3,419,334 | 314,558 | 4,381,862 |
Additions | - | 56,249 | 51,320 | 107,569 |
Disposals | - | (112,316 | ) | (13,303 | ) | (125,619 | ) |
At 30th November 2023 | 647,970 | 3,363,267 | 352,575 | 4,363,812 |
DEPRECIATION |
At 1st December 2022 | 284,763 | 2,826,470 | 301,095 | 3,412,328 |
Charge for year | 12,657 | 135,074 | 14,471 | 162,202 |
Eliminated on disposal | - | (105,164 | ) | (371 | ) | (105,535 | ) |
At 30th November 2023 | 297,420 | 2,856,380 | 315,195 | 3,468,995 |
NET BOOK VALUE |
At 30th November 2023 | 350,550 | 506,887 | 37,380 | 894,817 |
At 30th November 2022 | 363,207 | 592,864 | 13,463 | 969,534 |
Company |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1st December 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 30th November 2023 |
DEPRECIATION |
At 1st December 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30th November 2023 |
NET BOOK VALUE |
At 30th November 2023 |
At 30th November 2022 |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st December 2022 |
and 30th November 2023 |
NET BOOK VALUE |
At 30th November 2023 |
At 30th November 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Empire Mills, Bramley, West Yorkshire, LS13 3HG |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Empire Mills, Bramley, West Yorkshire, LS13 3HG |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
12. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Raw materials | 975,211 | 1,476,358 |
Work-in-progress | 1,687 | 1,687 |
Finished goods | 2,256,083 | 2,084,853 |
3,232,981 | 3,562,898 |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 1,463,512 | 1,522,126 |
Amounts owed by group undertakings | - | - |
Other debtors | 525 | 10,628 |
Directors' loan accounts | - | 20,000 | - | 20,000 |
VAT | 49,691 | 102,652 |
Deferred tax asset | - | - | 453 | 11,856 |
Prepayments and accrued income | 67,799 | 120,876 |
1,581,527 | 1,776,282 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade creditors | 382,190 | 996,920 |
Amounts owed to group undertakings | - | - |
Corporation Tax | 121,241 | 219,686 |
Social security and other taxes | 32,093 | 52,039 |
Other creditors | 32,773 | 17,776 |
Accruals and deferred income | 235,659 | 362,710 |
803,956 | 1,649,131 |
15. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 109,639 | 100,581 |
Group |
Deferred |
tax |
£ |
Balance at 1st December 2022 | 100,581 |
Movement in deferred taxation | 9,058 |
Balance at 30th November 2023 | 109,639 |
Company |
Deferred |
tax |
£ |
Balance at 1st December 2022 | ( |
) |
Provided during year |
Balance at 30th November 2023 | ( |
) |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 37,692 | 37,692 |
'A' Ordinary | £1 | 35,740 | 35,740 |
73,432 | 73,432 |
Ordinary and 'A' Ordinary shares are equivalent, except the holders of 'A' Ordinary shares have no rights to vote at any general meeting. |
17. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1st December 2022 | 6,073,960 | 126,568 | 6,200,528 |
Profit for the year | 427,821 | 427,821 |
Dividends | (146,864 | ) | (146,864 | ) |
At 30th November 2023 | 6,354,917 | 126,568 | 6,481,485 |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1st December 2022 | 5,703,742 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 30th November 2023 | 5,865,010 |
18. | PENSION COMMITMENTS |
The group operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £33,766 (2022 - £26,201). |
19. | OTHER FINANCIAL COMMITMENTS |
The Company's overdraft facility has been secured by way of a right of set off with its subsidiary Brown & Sons (Bramley) Limited. |
ALFRED BROWN(WORSTED MILLS) LIMITED (REGISTERED NUMBER: 00487461) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH NOVEMBER 2023 |
20. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 30th November 2023 and 30th November 2022: |
2023 | 2022 |
£ | £ |
A N Brown |
Balance outstanding at start of year | 20,000 | - |
Amounts advanced | - | 20,000 |
Amounts repaid | (20,000 | ) | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | - | 20,000 |
21. | CONTROLLING PARTY |
In the opinion of the directors the group is controlled by members of the Brown family. All the directors, except for Mr R D H McArdle, are members of the Brown family. |