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Company registration number: 03559431







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MAY 2023


WIDECOVER LIMITED






































img248c.png                        

 


WIDECOVER LIMITED
 


 
COMPANY INFORMATION


Directors
G Singh 
J Walia 
M Walia 




Company secretary
M Walia



Registered number
03559431



Registered office
Lees Mill Lane
Linthwaite

Huddersfield

West Yorkshire

HD7 5QE




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Lynton House

7-12 Tavistock Square

London

WC1H 9LT





 


WIDECOVER LIMITED
 



CONTENTS



Page
Group strategic report
1 - 2
Directors' report
3 - 5
Independent auditors' report
6 - 9
Consolidated income statement
10
Consolidated statement of comprehensive income
11
Consolidated balance sheet
12 - 13
Company balance sheet
14
Consolidated statement of changes in equity
15
Company statement of changes in equity
16
Consolidated statement of cash flows
17 - 18
Consolidated analysis of net debt
19
Notes to the financial statements
20 - 41


 


WIDECOVER LIMITED
 


 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023

Introduction
 
The directors present their strategic report of the company and the group for the year ended 31 May 2023.

Business review
 
There has been a significant increase in turnover and gross profit margins following the acquisition of a new subsidiary, Cropnosys India Private Limited in the prior year.The financial year ended 31 May 2023 sees a full year of Cropnosys India Private Limited's results in the Group financial statements.

The group's key financial and other performance indicators during the year were as follows:


2023
2022

£
£
Turnover
111,151,657
41,916,397
Gross profit
29,951,128
8,024,516
Gross profit margin
26.9%
19.1%
Operating profit
16,567,709
6,043,967


Principal risks and uncertainties
 
The directors have considered the principal risks and uncertainties affecting the group as at the balance sheet date and up to the date of this report.
The group's operations expose it to a variety of financial risks that include the effects of changes in credit risk and liquidity risk. The group has debt finance but does not use derivative financial instruments to manage interest rates and as such, no hedge accounting is applied.
The group's financial instruments comprise cash and liquid resources, various items such as trade debtors, trade creditors etc, that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the group's operations. It is, and has been throughout the period under review, the group's policy that no trading in financial instruments shall be undertaken. The main risks arising from the group's financial instruments are market risk, credit risk, business and operational risk.
Market risk
Market risk includes failure to anticipate the pricing and market changes. External influences, such as fluctuations in commodity prices, foreign currency exchange rates and currency values could have a material adverse effect on our result of operation and financial position. The group seeks to manage the risk through diversification of its portfolio of products, geographies into which it sells and the currencies in which it operates.
Credit risk
The group trades only with recognised, creditworthy third parties. It is the group's policy that all customers who wish to trade on credit terms are subject to credit vetting procedures. In addition, receivables balances are monitored on an ongoing basis with the result that the group's exposure to bad debts is not significant.
Business and Operational risk
We sell our products in competitive markets, and the success of our competitive strategy depends on our products and retaining customers and distributors. The group manages business and operational risk by ensuring adequate operating margins are maintained.

Page 1

 


WIDECOVER LIMITED
 



GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023

Directors' statement of compliance with duty to promote the success of the Group
 
Section 172 of the Companies Act requires Directors to take into consideration the interests of stakeholders and other matters in their decision making. The Board considers that the decisions they have made during the financial year and the way they have acted have been in the best interests of stakeholders and related parties, having regard for matters set out in s172(1) (a-f) of the Act.
The Board acts in good faith and in a manner that they consider promotes the long-term success of the business for the benefit of its stakeholders. The directors are constantly exploring opportunities to generate additional business. The company’s key stakeholders are its internal staff, clients, and suppliers. The company engages with its employees, clients and suppliers through several means including:
 
Employees: internal updates on the company’s development, client relationship building, and employee training and development
Clients: providing support and advice to clients to build sustainable long-term business relationships to help them achieve their goals and objectives.
Suppliers: Effective communications and updates on contracts to develop sustainable long-term business relationships.


This report was approved by the board and signed on its behalf.



J Walia
Director

Date: 30 August 2024

Page 2

 


WIDECOVER LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023

The directors present their report and the financial statements for the year ended 31 May 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Group's financial statements 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The principal activities of the group in the year under review were those of trading in agrochemicals and manufacturing of crop protection products.

Results and dividends

The profit for the year, after taxation and minority interests, amounted to £10,137,198 (2022: £4,100,519).

Dividends paid in the year amounted to £40,800 (2022: £73,800).

Directors

The directors who served during the year were:

G Singh 
J Walia 
M Walia 

Company's policy for payment of creditors

It is Group policy to agree and clearly communicate the terms of payment as part of commercial arrangements negotiated with suppliers and then to pay according to those terms based upon the timely receipt of an accurate invoice.
Trade creditor days of the Group for the year ended 31 May 2023 were 66 days (2022: 158 days), calculated as the ratio, expressed in days, between the amounts invoiced to the Company by its suppliers in the year and the amounts due to trade creditors at the year end.

Page 3

 


WIDECOVER LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023

Engagement with employees

The provision of high-level information to staff is maintained through regular communications. Members of the management team regularly visit branches and discuss relevant business issues with members of staff and a programme of regular staff consultative committee meetings is followed.

Engagement with suppliers, customers and others

The directors regularly monitor key supplier relationships, relevant developments and engagement activities. Contracts and activity with customers have been reviewed by the directors in the context of the relevant transactions.
The directors have always paid special attention to issues related to customers and suppliers. During the year ended 31 May 2023, the directors regularly monitor the performance of customers and suppliers and the impacts on them of the wider macroeconomic and geopolitical environment. 

Disabled employees

The Group gives full and fair consideration to applications for employment made by disabled persons and their continuing employment, training and career development, having full regard to their aptitudes and abilities.

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group's greenhouse gas emissions and energy consumption for the year are:
                                                                                                                                               
 2023                                     2022
Energy consumption                                                                                                               kWh                                      kWh
Aggregate of energy consumption in the year                                                                2,959,429                             2,755,402
                                                                                                                                               
2023                                      2022
Emissions of CO2 equivalent                                                                                metric tonnes                       metric tonnes
Scope 1 - direct emissions
- Production of products                                                                                                        8,452                                    8,464
Intensity ratio
Total gross (CO2e/Turnover (£m)                                                                                             76                                        202

The reporting period is the most recent financial year 01/06/2022 to 31/05/2023. This report has been compiled in line with the March 2019 BEIS 'Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance', and the EMA methodology for SECR Reporting.
All measured emissions from activities which the organisation has financial control over are included as required under The Companies (Directors' Report) and Limitation Liability Partnerships (Energy and Carbon Report) Regulations 2018, unless otherwise stated in the exclusions statement below.
The carbon figures have been calculated using the Department for Business Energy and Industrial Strategy 2023 carbon conversion factors for all fuels, other than the market-based electricity which has been taken from the relevant UK suppliers.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £1m turnover.

Matters covered in the Group strategic report

The principal risks and uncertainties that the group is exposed to in respect of foreign currency risk, liquidity risk and credit risk have been disclosed in the strategic report.

Page 4

 


WIDECOVER LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Auditors

The auditorsMenzies LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





J Walia
Director

Date: 30 August 2024

Page 5

 


WIDECOVER LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WIDECOVER LIMITED

Disclaimer of Opinion


We were engaged to audit the financial statements of Widecover Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 May 2023, which comprise the Consolidated income statement, the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, 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).

We do not express an opinion on the accompanying financial statements of the Group and Company. Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.

Basis for disclaimer of opinion


In relation to the Group’s subsidiary, Cropnosys India Private Limited, we were unable to obtain sufficient appropriate audit evidence regarding the work undertaken on this significant component by the component auditor. The component auditor refused to share audit working papers meaning we were unable to review the audit work completed in respect of the significant component. We were unable to satisfy ourselves by alternative means concerning the component auditor's work or the financial information of the component. Consequently, we were unable to determine whether any adjustments might have been necessary in respect of the component's financial information included in the consolidated financial statements.
We have issued a disclaimer of opinion on the basis that the Group’s subsidiary, Cropnosys India Private Limited, is deemed a significant component to the Group, as the subsidiary represents 66% of Group turnover and 84% of the Group’s gross assets.
 
Opinions on other matters prescribed by the Companies Act 2006


Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have been unable to form an opinion, whether based on the work undertaken in the course of the audit:

the information given in the strategic report and directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


 

 

Page 6

 


WIDECOVER LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WIDECOVER LIMITED (CONTINUED)

Matters on which we are required to report by exception
 

Notwithstanding our disclaimer of an opinion on the financial statements, 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 performed subject to the pervasive limitation described above, we have not identified material misstatements in the Group strategic report and the Directors' report.

Arising from the limitation of our work referred to above:

we have not obtained all the information and explanations that we considered necessary for the purposes of our audit; and 
returns adequate for our audit have not been received from branches not visited by us.

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;
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made.

 
Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, 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 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.


Page 7

 


WIDECOVER LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WIDECOVER LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements
 

Our responsibility is to conduct an audit of the statements in accordance with International Standards on Auditing (UK) and to issue an auditor’s report.

However, because of the matter described in the basis for disclaimer of opinion section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.

We are independent of the Group and 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.

Other matters

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 Auditors' 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:

The Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:

The Companies Act 2006;
Financial Reporting Standard 102;
UK employment legislation
General Data Protection Regulations; and
UK tax legislation

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

We understood how the Group is complying with those legal and regulatory frameworks by, making inquiries to management and those responsible for legal and compliance procedures.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. The assessment did not identify any issues in this area.

We assessed the susceptibility of the Group’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls other inappropriate influence over the financial reporting process;
Challenging assumptions and judgements made by management in its significant accounting estimates; and
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

The application of inappropriate judgements or estimation to manipulate the Group’s financial position;
Posting unusual journals and complex transactions, particularly in the period during which adequate accounting records were not maintained; and
Page 8

 


WIDECOVER LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WIDECOVER LIMITED (CONTINUED)

The use of management override of controls to manipulate results, or to cause the Group to enter into transactions not in its best interests.

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. As outlined in the basis for disclaimer of opinion section of our report, there have been limitations to the information available to us during the course of our audit of the Group's financial statements for the year ended 31 May 2023, which have further limited our ability to detect and identify fraud. 


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 Auditors' report.


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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.




Robin Hopkins (Senior statutory auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
Lynton House
7-12 Tavistock Square
London
WC1H 9LT

30 August 2024
Page 9

 


WIDECOVER LIMITED
 


 
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MAY 2023

2023
2022
Note
£
£

  

Turnover
 4 
111,151,657
41,916,397

Cost of sales
  
(81,200,128)
(33,891,881)

Gross profit
  
29,951,529
8,024,516

Distribution costs
  
(18,735)
(40,011)

Administrative expenses
  
(13,372,177)
(1,975,060)

Other operating income
 5 
100
34,522

Operating profit
 6 
16,560,717
6,043,967

Interest receivable and similar income
 10 
1,408,741
8,537

Interest payable and similar expenses
 11 
(204,910)
(99,370)

Profit before tax
  
17,764,548
5,953,134

Tax on profit
 12 
(4,365,197)
(1,241,421)

Profit for the financial year
  
13,399,351
4,711,713

Profit for the year attributable to:
  

Non-controlling interests
  
3,262,153
611,194

Owners of the parent
  
10,137,198
4,100,519

  
13,399,351
4,711,713

The notes on pages 20 to 41 form part of these financial statements.

Page 10

 


WIDECOVER LIMITED
 



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023

2023
2022
£
£


Profit for the financial year

  

13,399,351
4,711,713

Other comprehensive income
  


Currency translation differences
  
(1,435,774)
51,026

Associated profits transferred
  
-
(3,784,541)

Negative goodwill on consolidation
  
-
10,931,325

Other comprehensive income for the year
  
(1,435,774)
7,197,810

Total comprehensive income for the year
  
11,963,577
11,909,523

Profit for the year attributable to:
  


Non-controlling interest
  
3,262,153
611,194

Owners of the parent Company
  
10,137,198
4,100,519

  
13,399,351
4,711,713

The notes on pages 20 to 41 form part of these financial statements.

Page 11

 


WIDECOVER LIMITED
REGISTERED NUMBER:03559431



CONSOLIDATED BALANCE SHEET
AS AT 31 MAY 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 15 
482,604
8,779

Tangible assets
 16 
7,477,807
5,595,847

Investments
 17 
700,010
9,967

  
8,660,421
5,614,593

Current assets
  

Stocks
 18 
12,287,393
11,256,433

Debtors: amounts falling due after more than one year
 19 
296,234
2,234

Debtors: amounts falling due within one year
 19 
34,288,700
34,530,541

Current asset investments
 20 
100,000
-

Cash at bank and in hand
 21 
6,496,302
6,240,172

  
53,468,629
52,029,380

Creditors: amounts falling due within one year
 22 
(23,990,782)
(31,299,975)

Net current assets
  
 
 
29,477,847
 
 
20,729,405

Total assets less current liabilities
  
38,138,268
26,343,998

Creditors: amounts falling due after more than one year
 23 
(477,740)
(682,986)

Provisions for liabilities
  

Deferred taxation
 25 
(173,893)
(117,239)

Other provisions
 26 
(117,071)
(96,987)

  
 
 
(290,964)
 
 
(214,226)

Net assets
  
37,369,564
25,446,786


Capital and reserves
  

Called up share capital 
 27 
100
100

Profit and loss account
 28 
29,141,717
20,082,090

Equity attributable to owners of the parent Company
  
29,141,817
20,082,190

Non-controlling interests
  
8,227,747
5,364,596

  
37,369,564
25,446,786


Page 12

 


WIDECOVER LIMITED
REGISTERED NUMBER:03559431


    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




J Walia
J Walia
Director
Director


Date: 30 August 2024

The notes on pages 20 to 41 form part of these financial statements.

Page 13

 


WIDECOVER LIMITED
REGISTERED NUMBER:03559431



COMPANY BALANCE SHEET
AS AT 31 MAY 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 16 
215
5,385

Investments
 17 
1,369,168
1,369,168

  
1,369,383
1,374,553

Current assets
  

Stocks
 18 
590,393
2,173,310

Debtors: amounts falling due after more than one year
 19 
2,234
2,234

Debtors: amounts falling due within one year
 19 
4,464,265
8,193,373

Cash at bank and in hand
 21 
538,872
558,246

  
5,595,764
10,927,163

Creditors: amounts falling due within one year
 22 
(699,902)
(6,414,996)

Net current assets
  
 
 
4,895,862
 
 
4,512,167

Total assets less current liabilities
  
6,265,245
5,886,720

  

Creditors: amounts falling due after more than one year
 23 
-
(41,667)

  

Net assets
  
6,265,245
5,845,053


Capital and reserves
  

Called up share capital 
 27 
100
100

Profit and loss account brought forward
  
5,844,953
5,400,504

Profit for the year
  
460,992
518,249

Dividends

  

(40,800)
(73,800)

Profit and loss account carried forward
  
6,265,145
5,844,953

  
6,265,245
5,845,053


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


J Walia
J Walia
Director
Director


Date: 30 August 2024

The notes on pages 20 to 41 form part of these financial statements.

Page 14


 
WIDECOVER LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023



Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity


£
£
£
£
£



At 1 June 2021
100
8,857,561
8,857,661
-
8,857,661





Profit for the year
-
4,100,519
4,100,519
611,194
4,711,713


Currency translation differences
-
51,026
51,026
19,637
70,663


Associates profits transferred
-
(3,784,541)
(3,784,541)
-
(3,784,541)


Negative goodwill on consolidation
-
10,931,325
10,931,325
-
10,931,325


Dividends
-
(73,800)
(73,800)
-
(73,800)


Acquisition of non-controlling
interest
-
-
-
4,733,765
4,733,765





At 1 June 2022
100
20,082,090
20,082,190
5,364,596
25,446,786





Profit for the year
-
10,137,198
10,137,198
3,262,154
13,399,352


Currency translation differences
-
(1,036,771)
(1,036,771)
(399,003)
(1,435,774)


Dividends
-
(40,800)
(40,800)
-
(40,800)



At 31 May 2023
100
29,141,717
29,141,817
8,227,747
37,369,564



The notes on pages 20 to 41 form part of these financial statements.

Page 15

 


WIDECOVER LIMITED
 



COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 June 2021
100
5,400,504
5,400,604



Profit for the year
-
518,249
518,249

Dividends
-
(73,800)
(73,800)



At 1 June 2022
100
5,844,953
5,845,053



Profit for the year
-
460,992
460,992

Dividends
-
(40,800)
(40,800)


At 31 May 2023
100
6,265,145
6,265,245


The notes on pages 20 to 41 form part of these financial statements.

Page 16

 


WIDECOVER LIMITED
 



CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
13,399,351
4,711,713

Adjustments for:

Amortisation of intangible assets
26,891
-

Depreciation of tangible assets
509,831
206,718

Loss on disposal of tangible assets
(119,300)
-

Finance costs
174,103
99,370

Finance income
(1,408,741)
(8,537)

Taxation charge
4,423,997
1,241,421

(Increase)/decrease in stocks
(1,030,960)
25,521

(Increase) in debtors
(52,159)
(6,175,551)

(Decrease)/increase in creditors
(3,676,425)
4,588,890

Increase in provisions
20,084
1,817

Corporation tax (paid)
(5,200,308)
(253,832)

Foreign exchange
(1,351,886)
-

Interest paid
-
(99,370)

Net cash generated from operating activities

5,714,478
4,338,160


Cash flows from investing activities

Purchase of intangible fixed assets
(500,716)
-

Purchase of tangible fixed assets
(3,488,655)
(441,501)

Sale of tangible fixed assets
119,301
-

Sale of current asset investments
-
50,000

Purchase of fixed asset investments
(690,043)
-

Sale of fixed asset investments
1,010,829
-

Purchase of share in associates
(100,000)
-

Interest received
1,408,741
8,537

Net cash inflow on acquisition
-
1,178,259

Net cash from investing activities

(2,240,543)
795,295

Cash flows from financing activities

New secured loans
-
277,069

Repayment of loans
(3,002,902)
(625,109)

Loans due from/(repaid to) directors
-
720

Dividends paid
(40,800)
(73,800)

Interest paid
(174,103)
-

Net cash used in financing activities
(3,217,805)
(421,120)

Net increase in cash and cash equivalents
256,130
4,712,335

Cash and cash equivalents at beginning of year
6,240,172
1,539,614

Foreign exchange gains and losses
-
(11,777)
Page 17

 


WIDECOVER LIMITED
 



CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023


2023
2022

£
£


Cash and cash equivalents at the end of year
6,496,302
6,240,172


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
6,496,302
6,240,172

6,496,302
6,240,172


The notes on pages 20 to 41 form part of these financial statements.

Page 18

 


WIDECOVER LIMITED
 



CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MAY 2023




At 1 June 2022
Cash flows
At 31 May 2023
£

£

£

Cash at bank and in hand

6,240,172

256,130

6,496,302

Debt due after 1 year

(682,986)

205,246

(477,740)

Debt due within 1 year

(5,669,822)

2,798,376

(2,871,446)

Liquid investments

-

100,000

100,000


(112,636)
3,359,752
3,247,116

The notes on pages 20 to 41 form part of these financial statements.

Page 19

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

1.


General information

Widecover Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Income statement in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated income statement from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 20

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated income statement within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 21

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 22

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.9

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated income statement over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the following methods..

Depreciation is provided on the following basis:

Freehold property
-
2% straight line
Long-term leasehold property
-
7-20% straight line
Plant and machinery
-
20-25% straight line
Motor vehicles
-
25% straight line
Fixtures and fittings
-
20-25% straight line
Office equipment
-
20-25% straight line
Computer equipment
-
33% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated income statement for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

Page 23

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.17

Financial instruments

Financial instruments are recognised in the Group's Balance sheet when the Group 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes
Page 24

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)


2.17
Financial instruments (continued)

a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

 
2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 25

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgements

Management are of the opinion that there are no significant judgements (apart from those involving estimations) made in the process of applying the entity's accounting policies.
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
Impairment of subsidiary
Determining whether an investment is impaired requires an estimation of its fair value. This is based on the future operating performance of the individual entities.

Tangible fixed assets
Tangible fixed assets, other than investment properties, are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Agrochemicals
95,800,284
30,203,212

Crop protection products
15,351,373
11,713,185

111,151,657
41,916,397


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
43,310,893
22,018,988

Rest of Europe
20,540,554
4,353,389

Rest of the World
47,300,210
15,544,020

111,151,657
41,916,397


Page 26

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

5.


Other operating income

2023
2022
£
£

Government grants receivable
-
33,995

Sundry income
100
527

100
34,522



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Research & development charged as an expense
661,476
20,579

Exchange differences
483,642
405,379


7.


Auditors' remuneration

2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
31,600
31,900

Other non-audit services
9,000
9,170

Page 27

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
3,395,535
1,267,662
45,191
43,374

Social security costs
83,588
69,050
2,227
2,761

Cost of defined contribution scheme
71,293
67,635
18,000
18,000

3,550,416
1,404,347
65,418
64,135


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Production
180
298
-
-



Administration
287
28
4
4

467
326
4
4


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
79,992
26,630

Group contributions to defined contribution pension schemes
18,000
18,000

97,992
44,630


During the year retirement benefits were accruing to 3 directors (2022 -3) in respect of defined contribution pension schemes.


10.


Interest receivable

2023
2022
£
£


Other interest receivable
1,408,741
8,537

1,408,741
8,537

Page 28

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
182,126
97,295

Other loan interest payable
22,784
46

Other interest payable
-
2,029

204,910
99,370


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
424,831
577,781


424,831
577,781

Foreign tax


Foreign tax on income for the year
3,881,565
648,874

3,881,565
648,874

Total current tax
4,306,396
1,226,655

Deferred tax


Deferred tax
58,801
14,766

Total deferred tax
58,801
14,766


Tax on profit
4,365,197
1,241,421
Page 29

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 -higher than) the standard rate of corporation tax in the UK of 20% (2022 -19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
17,764,548
5,953,134


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 20% (2022 -19%)
3,552,910
1,131,095

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,526
7,413

Capital allowances for year in excess of depreciation
-
(19,567)

Deferred tax
-
14,766

Profits chargeable to higher rate of tax in overseas subsidiary
809,761
107,714

Total tax charge for the year
4,365,197
1,241,421


13.


Dividends

2023
2022
£
£


Dividends paid
40,800
73,800

40,800
73,800


14.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Income statement in these financial statements. The profit after tax of the parent Company for the year was £460,992 (2022 -£518,249).

Page 30

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

15.


Intangible assets

Group





Computer software
Goodwill
Total

£
£
£



Cost


At 1 June 2022
8,965
1
8,966


Additions
57,462
443,254
500,716



At 31 May 2023

66,427
443,255
509,682



Amortisation


At 1 June 2022
187
-
187


Charge for the year on owned assets
26,891
-
26,891



At 31 May 2023

27,078
-
27,078



Net book value



At 31 May 2023
39,349
443,255
482,604



At 31 May 2022
8,778
1
8,779



No intangible assets are held in the parent company.

Page 31


WIDECOVER LIMITED
  
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023



16.


Tangible fixed assets


Group







Freehold property
Long-term leasehold property
Other fixed assets
Plant and machinery
Fixtures and fittings
Motor vehicles
Computer equipment
Total

£
£
£
£
£
£
£
£



Cost or valuation


At 1 June 2022
3,024,298
37,801
1,037,492
1,272,943
405,922
197,070
13,525
5,989,051


Additions
1,103,705
202,527
30,458
1,799,009
333,208
1,098
18,649
3,488,654


Disposals
(33,293)
-
(996,807)
(4,155)
-
(500)
-
(1,034,755)


Exchange adjustments
(49,162)
(1,219)
(20,342)
(31,626)
(4,463)
(5,297)
(6)
(112,115)



At 31 May 2023

4,045,548
239,109
50,801
3,036,171
734,667
192,371
32,168
8,330,835



Depreciation


At 1 June 2022
37,065
2,569
-
229,964
105,091
15,763
2,752
393,204


Charge for the year on owned assets
33,955
43,688
-
332,100
63,192
30,890
6,006
509,831


Disposals
(19,976)
-
-
(3,734)
-
(216)
-
(23,926)


Exchange adjustments
(1,386)
(527)
-
(20,151)
(1,738)
(1,746)
(533)
(26,081)



At 31 May 2023

49,658
45,730
-
538,179
166,545
44,691
8,225
853,028



Net book value



At 31 May 2023
3,995,890
193,379
50,801
2,497,992
568,122
147,680
23,943
7,477,807



At 31 May 2022
2,987,233
35,232
1,037,492
1,042,979
300,831
181,307
10,773
5,595,847

Page 32

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

           16.Tangible fixed assets (continued)


Company






Leasehold improvement
Plant and machinery
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£

Cost or valuation


At 1 June 2022
25,357
12,233
26,104
378
64,072



At 31 May 2023

25,357
12,233
26,104
378
64,072



Depreciation


At 1 June 2022
20,285
12,233
25,904
265
58,687


Charge for the year on owned assets
5,072
-
60
38
5,170



At 31 May 2023

25,357
12,233
25,964
303
63,857



Net book value



At 31 May 2023
-
-
140
75
215



At 31 May 2022
5,072
-
200
113
5,385







17.


Fixed asset investments

Group





Unlisted investments

£



Cost or valuation


At 1 June 2022
9,967


Additions
690,043



At 31 May 2023
700,010




On 19 April 2023, Cropnosys (India) Pvt. Limited increased its investment in Ugaoo Agritech Private Limited to 8,488 shares. 

Page 33

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
Company





Investments in subsidiary companies

£



Cost or valuation


At 1 June 2022
1,369,168



At 31 May 2023
1,369,168





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Widecover Holdings Limited
Lees Mill Lane, Linthwaite, Huddersfield, West Yorkshire, HD7 5QE, UK
Ordinary
100%
J T Grosvenor Limited
Lees Mill Lane, Linthwaite, Huddersfield, West Yorkshire, HD7 5QE, UK
Ordinary
100%
Cropnosys (India) Pvt. Limited
9th Floor, Northstar, Yelahanka, Bangalore, Karnatak, 560064, India
Ordinary
72.21%

The aggregate of the share capital and reserves as at 31 May 2023 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Widecover Holdings Limited
278,855
171,062

J T Grosvenor Limited
2,616,518
1,057,458

Cropnosys (India) Private Limited
29,606,863
11,738,589


18.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Raw materials and consumables
12,287,393
9,699,287
590,393
2,173,310

Finished goods and goods for resale
-
1,557,146
-
-

12,287,393
11,256,433
590,393
2,173,310


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 34

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

19.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Due after more than one year

Other debtors
296,234
2,234
2,234
2,234

296,234
2,234
2,234
2,234


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Due within one year

Trade debtors
26,590,453
29,569,302
440,565
5,611,878

Amounts owed by group undertakings
383,581
-
1,276,909
1,289,511

Other debtors
7,242,468
4,778,619
2,746,791
1,119,304

Prepayments and accrued income
72,198
182,620
-
172,680

34,288,700
34,530,541
4,464,265
8,193,373



20.


Current asset investments

Group
Group
2023
2022
£
£

Listed investments
100,000
-

100,000
-


No listed investments are held by the parent company.


21.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
6,496,302
6,240,172
538,872
558,246

6,496,302
6,240,172
538,872
558,246


Page 35

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

22.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
2,871,446
5,669,102
41,667
500,000

Trade creditors
14,789,419
18,199,234
23,579
3,024,164

Amounts owed to group undertakings
-
-
383,580
615,231

Corporation tax
1,132,665
1,967,776
121,344
129,548

Other taxation and social security
202,163
535,300
-
435,111

Other creditors
3,824,139
3,650,305
82,893
861,147

Invoice discounting creditor
-
598,322
-
598,322

Accruals and deferred income
1,170,950
679,936
46,839
251,473

23,990,782
31,299,975
699,902
6,414,996



The following liabilities were secured:
Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
-
598,322
-
598,322

Bank loans
2,871,446
5,669,102
41,667
500,000

2,871,446
6,267,424
41,667
1,098,322

Details of security provided:

Amounts above within Trade creditors are due to HSBC invoice discounting account and is secured on the company Trade debtors. 
Details of the security provided for bank loans can be found in note 24.

Page 36

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

23.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
477,740
682,986
-
41,667

477,740
682,986
-
41,667



The following liabilities were secured:
Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Bank loans
477,740
682,986
-
41,667

477,740
682,986
-
41,667

Details of security provided:

Details of the security provided for bank loans can be found in note 24.


The aggregate amount of liabilities repayable wholly or in part more than five years after the balance sheet date is:
 
Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Repayable by instalments
477,740
682,986
-
41,667

477,740
682,986
-
41,667

Please provide details of the terms of payment or repayment and the rates of any interest payable on the amounts repayable more than five years after the balance sheet date.

Page 37

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

24.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Bank loans
2,871,446
5,669,102
41,667
500,000


2,871,446
5,669,102
41,667
500,000

Amounts falling due 1-2 years

Bank loans
477,740
280,383
-
41,667


477,740
280,383
-
41,667

Amounts falling due 2-5 years

Bank loans
-
402,603
-
-


-
402,603
-
-


3,349,186
6,352,088
41,667
541,667


Included in the above amounts is a loan in of the subsidiaries which bears an interest rate of 2% per annum over the base rate and is secured as follows:

Security

1.First Legal Mortgage over the freehold property of the subsidiary, known as Lees Mill Lane, Huddersfield.
2.Debenture comprising fixed and floating charges over all the assets and undertaking of the subsidiary including all present and future freehold and leasehold property, book and other debts, chattels, goodwill and uncalled capital, both present and future.
3.Debenture comprising fixed and floating charges over all the assets and undertaking of Cropthetics Ltd, a company under common control, including all present and future freehold and leasehold property, book and other debts, chattels, goodwill and uncalled capital, both present and future.
4.Group guarantee in favour of the Bank of Widecover Holdings Ltd, Widecover Ltd, JT Agro Ltd and Cropthetics Ltd, companies under common control, guaranteeing the obligations of each other to the Bank.
5.Group guarantee in favour of the Bank from Widecover Holdings Ltd and Widecover Ltd guaranteeing the obligations of each other to the Bank.

Included in the above amounts is also a loan in the foreign subsidiary on which interest is charged, on a monthly basis, at rates as set by the bank's guidelines from time to time and are secured by first and exclusive charge on all existing and future current assets and moveable fixed assets of the entity, by an equitable mortgage charge over the factory land and building at Plot No 5303, Near Shah Paper Mills, Phase IV, GIDC, Village Karvad, Vapi, Gujarat 396195 owned by the entity and by personal guarantees from the directors Mr G Singh, Mr J Walia and Ms M Walia.
 

Page 38

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

25.


Deferred taxation


Group



2023


£






At beginning of year
(117,239)


Charged to profit or loss
(58,801)


Exchange rate movement
2,147



At end of year
(173,893)

Company


2023






At end of year
-
The provision for deferred taxation is made up as follows:

Group
Group
2023
2022
£
£

Accelerated capital allowances
(173,893)
(117,239)

(173,893)
(117,239)


26.


Provisions


Group



Provision for gratuity

£





At 1 June 2022
96,987


Charged to profit or loss
20,084



At 31 May 2023
117,071

Page 39

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

27.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 -100) Ordinary shares of £1.00 each
100
100



28.


Reserves

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends paid and other adjustments.


29.


Contingent liabilities

A Group guarantee has been given in favour of HSBC Bank by Widecover Limited, Cropthetics Limited, JT Agro Limited, J T Grosvenor Limited and Widecover Holdings Limited guaranteeing the obligations for each other to the bank.
A Group guarantee has also been given in favour of HSBC Bank by Widecover Limited and Widecover Holdings Limited guaranteeing the obligations for each other to the bank.
Cropthetics Limited and JT Agro Limited are related by virtue of common control.


30.


Commitments under operating leases

At 31 May 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
31,032
24,564
7,491
-

Later than 1 year and not later than 5 years
28,981
43,160
9,363
-

60,013
67,724
16,854
-

Page 40

 


WIDECOVER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

31.


Related party transactions

During the year, total dividends of £40,800 (2022: £73,800) were paid to the directors.
There are debentures comprising fixed and floating charges over all the assets and undertaking of JT Agro Limited, including all present and future freehold and leasehold property, book and other debts, chattels, goodwill and uncalled capital, both present and future as security over the company's facility.

During the year, the group made sales to related parties amounting to £9,232,599 (2022: £5,870,077). At the year end date, amounts due from related parties was £2,791,946 (2022: £13,499,334).

During the year, the group made purchases from related parties amounting to £8,573,229 (2022: £474,584). At the year end date, amounts due to related parties was £788,248 (2022: £7,242,622).

The Directors of Widecover Limited are considered to be key management personnel. Their remuneration is disclosed in note 9.


32.


Controlling party

The ultimate controlling parties are G Singh and M Walia.


33.


Bank limits & securities held

The parent company has a combined limit for export and import line facility of USD $6,500,000 with HSBC Bank Plc. These are secured by debentures including fixed charge over all recent freehold and leasehold property; first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and first floating charge over all assets and undertaking both present and future.

 
Page 41