Company Registration No. SC261393 (Scotland)
ALLIANCE SANITARY PRODUCTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ALLIANCE SANITARY PRODUCTS LIMITED
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 20
ALLIANCE SANITARY PRODUCTS LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr M B Jones
Mr D W McKinlay
Mr G Lennox
(Appointed 1 January 2023)
Secretary
Mrs S McKinlay
Company number
SC261393
Registered office
Unit A, 1 Young Place
Kelvin Industrial Estate
East Kilbride
Scotland
G75 0TD
Auditor
Consilium Audit Limited
169 West George Street
Glasgow
Scotland
G2 2LB
ALLIANCE SANITARY PRODUCTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The company's turnover for the year has increased by 12% from £12.1m to £13.5m, with an operating profit of £3.2m (2022: £2.4m).
At the year end the company had shareholder's funds of £7,368,867 compared to £5,570,502 at the previous year end. The directors are pleased to have maintained a strong net current asset position at the year end with current assets exceeding current liabilities by £7,331,720 (2022: £5,538,818).
Principal risks and uncertainties
The directors have assessed the main risk facing the company as being competition from other wholesale bathroom equipment suppliers and believe the quality of staff and industry contacts they have will mitigate this risk.
Financial risk management
The company makes little use of financial instruments. Exposure to price risk, credit risk, liquidity risk and cash flow risk is not material for the assessment of the assets, liabilities, financial position and profit or loss of the company.
Future trading
The company has seen a upturn in trade in comparison with the previous year.
We believe that the next 12 months will be challenging as these issues continue to have an impact on the global economy however we are confident that the company, due to its reliability and quality of service, will continue to be profitable. Whilst there remains a significant amount of economic uncertainty we remain positive about the future trading prospects of the company.
Mr D W McKinlay
Director
27 August 2024
ALLIANCE SANITARY PRODUCTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of distribution of sanitary ware.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £660,000 (2022: £385,000). The directors do not recommend payment of a further dividend.
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 B Jones
Mr D W McKinlay
Mr G Lennox
(Appointed 1 January 2023)
Auditor
The auditor, Consilium Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and 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.
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.
ALLIANCE SANITARY PRODUCTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
Mr D W McKinlay
Director
27 August 2024
ALLIANCE SANITARY PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALLIANCE SANITARY PRODUCTS LIMITED
- 5 -
Opinion
We have audited the financial statements of Alliance Sanitary Products 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.
ALLIANCE SANITARY PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALLIANCE SANITARY PRODUCTS LIMITED
- 6 -
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.
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.
ALLIANCE SANITARY PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALLIANCE SANITARY PRODUCTS LIMITED
- 7 -
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
We identified the laws and regulations applicable to the company through discussions with directors and management and from our knowledge of the regulatory environment relevant to the company.
We assessed the extent of compliance with laws and regulations through making enquiries of management and inspecting legal correspondence.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud and their knowledge of actual, suspected and alleged fraud.
To address the risk of fraud through management bias and override of controls, we tested journal entries to identify unusual transactions, we assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias and we investigated the rationale behind significant or unusual transactions.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
David Holt
Senior Statutory Auditor
For and on behalf of Consilium Audit Limited
Statutory Auditor
169 West George Street
Glasgow
Scotland
G2 2LB
28 August 2024
ALLIANCE SANITARY PRODUCTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
13,493,634
12,099,245
Cost of sales
(8,089,843)
(7,626,926)
Gross profit
5,403,791
4,472,319
Administrative expenses
(2,183,235)
(2,045,190)
Operating profit
3
3,220,556
2,427,129
Interest receivable and similar income
5,219
537
Profit before taxation
3,225,775
2,427,666
Tax on profit
6
(767,410)
(466,736)
Profit for the financial year
2,458,365
1,960,930
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The notes on pages 12 to 20 form part of these financial statements.
ALLIANCE SANITARY PRODUCTS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
8
49,530
31,684
Current assets
Stocks
9
2,055,126
2,579,177
Debtors
10
2,017,953
1,776,625
Cash at bank and in hand
4,656,737
1,975,553
8,729,816
6,331,355
Creditors: amounts falling due within one year
11
(1,398,096)
(792,537)
Net current assets
7,331,720
5,538,818
Total assets less current liabilities
7,381,250
5,570,502
Provisions for liabilities
Deferred tax liability
12
12,383
(12,383)
-
Net assets
7,368,867
5,570,502
Capital and reserves
Called up share capital
13
105,000
105,000
Share premium account
28,000
28,000
Profit and loss reserves
14
7,235,867
5,437,502
Total equity
7,368,867
5,570,502
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 D W McKinlay
Director
Company Registration No. SC261393
ALLIANCE SANITARY PRODUCTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
105,000
28,000
3,861,572
3,994,572
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
1,960,930
1,960,930
Issue of share capital
13
-
Dividends
7
-
-
(385,000)
(385,000)
Balance at 31 December 2022
105,000
28,000
5,437,502
5,570,502
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
2,458,365
2,458,365
Dividends
7
-
-
(660,000)
(660,000)
Balance at 31 December 2023
105,000
28,000
7,235,867
7,368,867
The notes on pages 12 to 20 form part of these financial statements.
ALLIANCE SANITARY PRODUCTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
18
3,369,565
2,304,435
Income taxes refunded/(paid)
4,511
(947,668)
Net cash inflow from operating activities
3,374,076
1,356,767
Investing activities
Purchase of tangible fixed assets
(38,111)
(335)
Interest received
5,219
537
Net cash (used in)/generated from investing activities
(32,892)
202
Financing activities
Dividends paid
(660,000)
(385,000)
Net cash used in financing activities
(660,000)
(385,000)
Net increase in cash and cash equivalents
2,681,184
971,969
Cash and cash equivalents at beginning of year
1,975,553
1,003,584
Cash and cash equivalents at end of year
4,656,737
1,975,553
ALLIANCE SANITARY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information
Alliance Sanitary Products Limited is a private company limited by shares incorporated in Scotland. The registered office is Unit A, 1 Young Place, Kelvin Industrial Estate, East Kilbride, Scotland, G75 0TD. The company's registration number is SC261393.
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 under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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 initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
20% straight line
Computer equipment
25% straight line
Motor vehicles
25% 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 the profit and loss account.
1.5
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.
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 the profit and loss account. Reversals of impairment losses are also recognised in the profit and loss account.
ALLIANCE SANITARY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.6
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.
1.7
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.
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 creditors, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.8
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.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
ALLIANCE SANITARY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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 liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to the profit and loss account 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.
1.13
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 the profit and loss account.
ALLIANCE SANITARY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Determining whether any bad debt provision is required via review of trade debtors, with debts provided for on a specific basis. Factors considered include customer payment history and agreed credit terms.
Determining whether any stock provision is required via comparison of cost and net realisable value of stock on an item by item basis
3
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
16,000
16,000
Depreciation of owned tangible fixed assets
20,265
11,351
Operating lease charges
348,712
311,697
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Warehouse
11
12
Management
7
7
Office
3
3
External (sales)
5
5
Total
26
27
ALLIANCE SANITARY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
4
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
1,204,256
1,059,912
Social security costs
138,473
121,860
Pension costs
50,879
50,268
1,393,608
1,232,040
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
255,600
127,750
Company pension contributions to defined contribution schemes
11,550
3,850
267,150
131,600
6
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
755,027
466,736
Deferred tax
Origination and reversal of timing differences
12,383
Total tax charge
767,410
466,736
ALLIANCE SANITARY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Taxation
(Continued)
- 17 -
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
3,225,775
2,427,666
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
758,718
461,257
Tax effect of expenses that are not deductible in determining taxable profit
1,347
3,340
Movement in deferred tax not provided for
2,139
Deferred tax not provided for in prior year
7,719
Other deductions
(374)
Taxation charge for the year
767,410
466,736
7
Dividends
2023
2022
£
£
Final paid
660,000
385,000
8
Tangible fixed assets
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
29,308
49,575
78,883
Additions
38,111
38,111
At 31 December 2023
29,308
49,575
38,111
116,994
Depreciation and impairment
At 1 January 2023
29,308
17,891
47,199
Depreciation charged in the year
10,737
9,528
20,265
At 31 December 2023
29,308
28,628
9,528
67,464
Carrying amount
At 31 December 2023
20,947
28,583
49,530
At 31 December 2022
31,684
31,684
ALLIANCE SANITARY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
9
Stocks
2023
2022
£
£
Finished goods and goods for resale
2,055,126
2,579,177
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,972,985
1,581,958
Corporation tax recoverable
155,079
Other debtors
44,968
39,588
2,017,953
1,776,625
11
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
116,033
289,483
Corporation tax
604,459
Other taxation and social security
406,014
37,539
Other creditors
271,590
465,515
1,398,096
792,537
12
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
2023
2022
Balances:
£
£
Accelerated capital allowances
12,383
-
2023
Movements in the year:
£
Liability at 1 January 2023
-
Charge to profit or loss
12,383
Liability at 31 December 2023
12,383
ALLIANCE SANITARY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
13
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
105,000 Ordinary of £1
105,000
105,000
14
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
5,437,502
3,861,572
Profit for the year
2,458,365
1,960,930
Dividends declared and paid in the year
(660,000)
(385,000)
At the end of the year
7,235,867
5,437,502
15
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
311,603
266,685
Between two and five years
351,017
471,760
662,620
738,445
16
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
2023
2022
£
£
Rent charged by directors
122,000
122,000
Rent charged from an associate company
106,250
106,250
Amonts due from directors
25,000
25,000
Amounts due to directors
26,547
278,575
ALLIANCE SANITARY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Related party transactions
(Continued)
- 20 -
The directors loan balance is unsecured, interest free with no fixed terms of repayment.
No further transactions with related parties were undertaken such as are required to be disclosed under Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
17
Ultimate controlling party
The company is under the control of the holders of ordinary share capital by virtue of their interest in the issued shared capital of the parent company, Highlife Bathrooms Holdings Limited. No individual shareholder has a controlling interest.
18
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
2,458,365
1,960,930
Adjustments for:
Taxation charged
767,410
466,736
Investment income
(5,219)
(537)
Depreciation and impairment of tangible fixed assets
20,265
11,351
Movements in working capital:
Decrease/(increase) in stocks
524,051
(166,454)
(Increase)/decrease in debtors
(396,407)
66,588
Increase/(decrease) in creditors
1,100
(34,179)
Cash generated from operations
3,369,565
2,304,435
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