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REGISTERED NUMBER: 11056301 (England and Wales)












THE AVOCET HARDWARE GROUP LIMITED

STRATEGIC REPORT, DIRECTOR'S REPORT AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023






THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Director's Report 4

Statement of Director's Responsibilities 6

Report of the Independent Auditors 7

Income Statement 12

Other Comprehensive Income 13

Balance Sheet 14

Statement of Changes in Equity 15

Cash Flow Statement 16

Notes to the Cash Flow Statement 17

Notes to the Financial Statements 18


THE AVOCET HARDWARE GROUP LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTOR: Mrs R Jain





SECRETARY: A Kapoor





REGISTERED OFFICE: Brookfoot Mills Brookfoot Industrial Est
Brookfoot
Brighouse
West Yorkshire
HD6 2RW





REGISTERED NUMBER: 11056301 (England and Wales)





AUDITORS: Wallace Crooke
Chartered Accountants
& Registered Auditors
Wallace House
20 Birmingham Road
Walsall
West Midlands
WS1 2LT

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The director presents her strategic report for the year ended 31 December 2023.

REVIEW OF BUSINESS
The Director is pleased to report that the Company has experienced a good year, achieving a turnover of £21,014,611 for the financial year, compared to £23,768,349 in the previous year. The Company generated a profit before tax of £1,259,683, which, while slightly lower than the previous year's profit of £1,390,263, still reflects a robust financial performance. At the close of the financial year, the Company had net assets valued at £3,104,024, a significant increase from £1,981,958 in the previous year.

The decline in turnover and profit is largely attributable to the challenging economic environment, particularly within the construction industry. Factors such as rising interest rates and a general trend toward reduced spending in the sector have contributed to this downturn. However, the Company had anticipated these market challenges and responded proactively by enhancing operational efficiency and sustaining profit margins.

Looking ahead to 2024, the Company is committed to implementing strategic measures aimed at boosting productivity. These initiatives are designed not only to enhance efficiency but also to deliver continued value to customers, thereby reinforcing the Company's strong market position.

PRINCIPAL RISKS AND UNCERTAINTIES
The Company, like any trading business, faces a variety of inherent risks. One of the primary risks is associated with the importation of goods, particularly the potential for exchange rate volatility. To mitigate this, the Company has established robust control measures to manage the impact of currency fluctuations. Additionally, any increases in material costs are strategically absorbed into the overall cost structure to minimize their impact on profitability.

Credit risk remains a significant concern, particularly in relation to trade debtors. The Company manages this risk by conducting thorough credit checks on new customers and closely monitoring payment patterns against contractual agreements. Regular reviews of outstanding debts ensure that any potential issues are identified and addressed promptly.

Liquidity risk is another critical area, particularly concerning the management of working capital, finance charges, and debt repayments. The Company mitigates this risk by conducting monthly cash flow projections and closely monitoring cash balances. This proactive approach ensures that the Company remains financially stable and can meet its obligations as they arise.

RISK MANAGEMENT AND INSURANCE COVERAGE
The Company has comprehensive insurance coverage in place to manage potential risks. This includes Marine, Cargo, and other relevant insurance policies designed to protect against a range of hazards. In addition, the Company has implemented stringent Health and Safety procedures to address risks related to fire and other emergencies.

Furthermore, all legally mandated insurance policies are maintained to cover Employee, Product, and Public Liability risks. These measures ensure that the Company is well-prepared to handle any unforeseen events, thereby safeguarding its operations and stakeholders.


THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

KEY PERFORMANCE INDICATORS
The Director identifies turnover, gross profit margin, and profit before tax as the key financial indicators for the Company's performance.

For the current year, the Company achieved a turnover of £21.0 million, compared to £23.8 million in the previous year.

Gross profit for the year amounted to £5.1 million, down from £5.6 million in 2022, resulting in a gross profit margin of 24.29%, an improvement from the previous year's margin of 23.48%.

Profit before tax stood at £1.26 million, slightly lower than the £1.39 million recorded in the prior year.

ON BEHALF OF THE BOARD:





Mrs R Jain - Director


2 September 2024

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The director presents her report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITIES
The principal activities of the company in the year under review were those of import and distribution of door and window furniture, cylinder locks, builders hardware and ironmongery products.

DIVIDENDS
No ordinary dividends were paid. The director does not recommend payment of a final dividend.

DIRECTOR
Mrs R Jain held office during the whole of the period from 1 January 2023 to the date of this report.

FINANCIAL INSTRUMENTS
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business. Cash flow projections are reviewed regularly to assist with managing liquidity risk.

The company has exposure to the USD currency, which is managed by forward exchange contracts and reviewed regularly by the director.

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board. All customers who wish to trade on credit terms are subject to credit verification procedures.

RESEARCH AND DEVELOPMENT
The company continues to invest in research and development. The director regards R & D investment as necessary for continuing success in the medium to long term future.

FUTURE DEVELOPMENTS
The company has stabilised its customer and supplier base such that it is now poised to develop its business further.

The company is developing business in Europe. It is committed to finding new products in the doors and window sector as well as the agricultural and hardware sector.

The company has increased its R & D activities to achieve the above objectives such that employee skills and other resources are improving with a view to deliver an efficient value proposition to all stakeholders.

In trying to achieve the above goals, the company will continue to focus on environmental issues whilst simultaneously contributing to cost reduction.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
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 director has taken all the necessary steps that she ought to have taken as director in order to make herself aware of all relevant audit information and to establish that the company's auditor is aware of that information.

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


AUDITORS
The auditors, Wallace Crooke, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:




Mrs R Jain - Director


2 September 2024

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
FOR THE YEAR ENDED 31 DECEMBER 2023

The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is 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 director is 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 director is 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 her to ensure that the financial statements comply with the Companies Act 2006. She is 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THE AVOCET HARDWARE GROUP LIMITED

Opinion
We have audited the financial statements of The Avocet Hardware Group Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the 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.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report, the Director's Report and the Statement of Director's Responsibilities, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THE AVOCET HARDWARE GROUP LIMITED


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 Director's Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page six, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THE AVOCET HARDWARE GROUP LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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 objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance including the design of the Company remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets;
- results of our enquiries of management about their own identification and assessment of the risks of irregularities;
- any matters we identified having obtained and reviewed the Company documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
- the matters discussed among the audit engagement team and involving relevant internal specialists, including tax specialists, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THE AVOCET HARDWARE GROUP LIMITED

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to compliance with laws and regulations. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company ability to operate or to avoid a material penalty. These included compliance with GDPR regulation.

Audit response to risks identified:

As a result of performing the above, we identified compliance with laws and regulations as a key audit matter related to the potential risk of fraud.

Our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; reading minutes of meetings of those charged with governance and reviewing internal reports;
- obtaining an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THE AVOCET HARDWARE GROUP LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Martin Jones FCA (Senior Statutory Auditor)
for and on behalf of Wallace Crooke
Chartered Accountants
& Registered Auditors
Wallace House
20 Birmingham Road
Walsall
West Midlands
WS1 2LT

2 September 2024

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 4 21,014,611 23,768,349

Cost of sales (15,911,157 ) (18,187,109 )
GROSS PROFIT 5,103,454 5,581,240

Administrative expenses (3,633,491 ) (4,060,030 )
1,469,963 1,521,210

Other operating income 5 74,537 99,642
OPERATING PROFIT 8 1,544,500 1,620,852

Interest receivable and similar income 3,190 -
1,547,690 1,620,852

Interest payable and similar expenses 10 (288,007 ) (230,589 )
PROFIT BEFORE TAXATION 1,259,683 1,390,263

Tax on profit 11 (137,617 ) 2,006
PROFIT FOR THE FINANCIAL YEAR 1,122,066 1,392,269

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,122,066 1,392,269


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,122,066

1,392,269

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 12 213,601 246,042
Tangible assets 13 140,379 221,856
353,980 467,898

CURRENT ASSETS
Stocks 14 10,555,035 11,956,073
Debtors 15 4,867,138 4,668,540
Cash at bank and in hand 409,786 474,812
15,831,959 17,099,425
CREDITORS
Amounts falling due within one year 16 12,113,192 14,624,361
NET CURRENT ASSETS 3,718,767 2,475,064
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,072,747

2,942,962

CREDITORS
Amounts falling due after more than one
year

17

(931,702

)

(918,998

)

PROVISIONS FOR LIABILITIES 20 (37,021 ) (42,006 )
NET ASSETS 3,104,024 1,981,958

CAPITAL AND RESERVES
Called up share capital 21 75,001 75,001
Retained earnings 22 3,029,023 1,906,957
SHAREHOLDERS' FUNDS 3,104,024 1,981,958

The financial statements were approved by the director and authorised for issue on 2 September 2024 and were signed by:





Mrs R Jain - Director


THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 75,001 514,688 589,689

Changes in equity
Total comprehensive income - 1,392,269 1,392,269
Balance at 31 December 2022 75,001 1,906,957 1,981,958

Changes in equity
Total comprehensive income - 1,122,066 1,122,066
Balance at 31 December 2023 75,001 3,029,023 3,104,024

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,875,882 5,625,895
Finance costs paid (288,007 ) (230,589 )
Tax paid (100,107 ) (100 )
Net cash from operating activities 1,487,768 5,395,206

Cash flows from investing activities
Purchase of tangible fixed assets (62,057 ) (119,119 )
Interest received 3,190 -
Net cash from investing activities (58,867 ) (119,119 )

Cash flows from financing activities
Loan repayments in year (2,095,535 ) (2,747,932 )
Repayments on HP contracts in year 1,290 -
Repayment of borrowings - (2,141,263 )
Repayment of derivatives - 13,345
Net cash from financing activities (2,094,245 ) (4,875,850 )

(Decrease)/increase in cash and cash equivalents (665,344 ) 400,237
Cash and cash equivalents at
beginning of year

2

474,812

74,575

Cash and cash equivalents at end of
year

2

(190,532

)

474,812

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 1,259,683 1,390,263
Depreciation charges 175,975 170,143
Finance costs 288,007 230,589
Finance income (3,190 ) -
1,720,475 1,790,995
Decrease in stocks 1,401,038 685,289
Decrease in trade and other debtors 549,731 332,946
(Decrease)/increase in trade and other creditors (1,795,362 ) 2,816,665
Cash generated from operations 1,875,882 5,625,895

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 409,786 474,812
Bank overdrafts (600,318 ) -
(190,532 ) 474,812
Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 474,812 74,575


3. ANALYSIS OF CHANGES IN NET DEBT

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank and in hand 474,812 (65,026 ) 409,786
Bank overdrafts - (600,318 ) (600,318 )
474,812 (665,344 ) (190,532 )
Debt
Finance leases - (15,800 ) (15,800 )
Debts falling due within 1 year (5,738,875 ) 2,095,535 (3,643,340 )
(5,738,875 ) 2,079,735 (3,659,140 )
Total (5,264,063 ) 1,414,391 (3,849,672 )

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

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

1. STATUTORY INFORMATION

The Avocet Hardware Group 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 Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Business combinations
The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.

Going concern
In assessing the appropriateness of the going concern assumption, the Director has reviewed detailed profit and loss forecasts and cash flow forecasts, considering all reasonably foreseeable potential scenarios and uncertainties in relation to revenue and expenditure for a period of at least 12 months from the date these financial statements have been signed. Based on these forecasts, the Director has a reasonable expectation that the company can meet its liabilities as they fall due and the Director has therefore concluded there is no material uncertainty in relation to going concern and as such has deemed it appropriate for the financial statements to be prepared on the going concern basis.

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. Revenue from the sale of hardware goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Patents & licencesStraight line over 10 years

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:

Leasehold improvementson a straight line basis over the period of the lease
Plant and equipment3 to 4 years straight line
Fixtures and fittings3 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials 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 profit or loss. Reversals of impairment losses are also recognised in profit or loss.

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

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.

Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including creditors and bank loans 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.


THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued
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.

Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

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.

Taxation
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.

Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Employment 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.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stocks provisions
The company considers it necessary to evaluate the recoverability of the cost of stock. The stock levels are constantly reviewed and, should there be an indication of obsolescence, the stock is written down to its assessed net realisable value. Stock items that are aged over 4 years are written down to nil.

4. TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

5. OTHER OPERATING INCOME

20232022
£   £   
Other Revenue
Interest income3,190-
Royalty income74,53799,642


6. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,785,037 2,733,534
Social security costs 287,966 326,985
Other pension costs 132,928 137,674
3,205,931 3,198,193

The average number of employees during the year was as follows:
2023 2022

Management 15 14
Sales and Administration 37 36
Warehouse 42 37
94 87

7. DIRECTORS' EMOLUMENTS

Directors' remuneration
2023 2022
£    £   
Remuneration for qualifying services 60,179 84,500
Company pension contributions to money purchase schemes 34,683 34,683
94,862 119,183


The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1


8. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 118,861 102,276
Depreciation - owned assets 143,534 137,702
Goodwill amortisation 30,000 30,000
Patents and licences amortisation 2,441 2,441
Foreign exchange differences (713,584 ) (533,673 )

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

9. AUDITORS' REMUNERATION

2023 2022
Fees payable to the company's auditor and associates £    £   

For audit services
Audit of the financial statements of the company 21,000 25,000

For other services
All other non-audit services 3,000 11,250

10. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Interest payable and similar
expenses 288,007 230,589
288,007 230,589

11. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 248,292 183,969
Adjustments in respect
of prior periods (105,690 ) (186,467 )
Total current tax 142,602 (2,498 )

Deferred tax (4,985 ) 492
Tax on profit 137,617 (2,006 )

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

11. TAXATION - continued

Reconciliation of total tax charge/(credit) included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,259,683 1,390,263
Profit multiplied by the standard rate of corporation tax in the UK of
23.520% (2022 - 19%)

296,277

264,150

Effects of:
Expenses not deductible for tax purposes 21,004 37,410
Capital allowances in excess of depreciation - (6,790 )
Depreciation in excess of capital allowances 18,575 -
Adjustments to tax charge in respect of previous periods (105,690 ) (186,467 )
Effect of change in corporation tax rate - 34,990
Movements in deferred tax not recognised (4,985 ) (145,299 )
Patent Box adjustment (87,564 ) -
Total tax charge/(credit) 137,617 (2,006 )

12. INTANGIBLE FIXED ASSETS
Patents
and
Goodwill licences Totals
£    £    £   
COST
At 1 January 2023
and 31 December 2023 300,000 24,446 324,446
AMORTISATION
At 1 January 2023 72,500 5,904 78,404
Amortisation for year 30,000 2,441 32,441
At 31 December 2023 102,500 8,345 110,845
NET BOOK VALUE
At 31 December 2023 197,500 16,101 213,601
At 31 December 2022 227,500 18,542 246,042

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

13. TANGIBLE FIXED ASSETS
Fixtures
Long Plant and and
leasehold machinery fittings Totals
£    £    £    £   
COST
At 1 January 2023 4,232 383,658 117,615 505,505
Additions - 59,467 2,590 62,057
At 31 December 2023 4,232 443,125 120,205 567,562
DEPRECIATION
At 1 January 2023 4,232 195,182 84,235 283,649
Charge for year - 115,215 28,319 143,534
At 31 December 2023 4,232 310,397 112,554 427,183
NET BOOK VALUE
At 31 December 2023 - 132,728 7,651 140,379
At 31 December 2022 - 188,476 33,380 221,856

14. STOCKS
2023 2022
£    £   
Stocks 10,555,035 11,956,073

Stock is shown net of a provision totalling £2,168,706 (2022: £1,534,167).

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 4,010,660 4,065,038
Amounts owed by related parties 748,329 -
Other debtors 1,190 483,244
Prepayments and accrued income 106,959 120,258
4,867,138 4,668,540

Included in other debtors for the year 2022 is amounts owed by related parties of £264,244.

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 18) 4,243,658 5,738,875
Hire purchase contracts (see note 19) 3,096 -
Trade creditors 3,358,621 3,713,120
Amounts owed to related parties 2,500,000 2,813,762
Tax 226,464 183,969
Social security and other taxes 60,614 62,691
VAT 377,808 531,575
Other creditors 193,821 218,891
Accruals and deferred income 1,149,110 1,361,478
12,113,192 14,624,361

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Hire purchase contracts (see note 19) 12,704 -
Directors' loan accounts 918,998 918,998
931,702 918,998

18. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 600,318 -
Bank loans 3,643,340 5,738,875
4,243,658 5,738,875

Bank loans and overdrafts includes £1,712,475 (2022 - £2,303,453) relating to an invoice discounting arrangement and £1,930,865 (2022 - £3,435,422) relating to a stock finance loan, both of which are secured against the company's assets.

19. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 3,096 -
Between one and five years 12,704 -
15,800 -

Non-cancellable operating leases
2023 2022
£    £   
Within one year 56,394 36,061
Between one and five years 108,710 43,247
165,104 79,308

20. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 37,021 42,006

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

20. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 January 2023 42,006
Credit to Income Statement during year (4,985 )
Balance at 31 December 2023 37,021

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
75,001 Ordinary 1 75,001 75,001

22. RESERVES
Retained
earnings
£   

At 1 January 2023 1,906,957
Profit for the year 1,122,066
At 31 December 2023 3,029,023

23. PENSION COMMITMENTS

20232022
Defined contribution schemes£   £   

Charge to profit or loss in respect of defined contribution schemes132,928137,674
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

24. OTHER FINANCIAL COMMITMENTS

The company has a guarantee in place with HM Revenue and Customs, which allows the company to defer up to £20,000 of its import duty payments.

25. DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

Movement in the director loan account, of which interest is being charged on £200K at market rate:


Description

%
Opening
balance
Interest
charged
Amounts
repaid
Closing
balance
£   £   £   £   

Directors loan5.625918,99811,250(11,250)918,998
918,99811,250(11,250)918,998

THE AVOCET HARDWARE GROUP LIMITED (REGISTERED NUMBER: 11056301)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

26. RELATED PARTY DISCLOSURES

Transactions with related parties
During the year the company entered into the following transactions with related parties:

Name of related party Nature of relationship
S Saigal Spouse of Director

Description of transaction Income Payments
2023 2022 2023 2022
£    £    £    £   

S Saigal Interest charged on loan - - 11,250 15,000

Balances with related parties



Amounts owed by
related parties
Amounts owed to
related parties
2023 2022 2023 2022
£    £    £    £   

Avocet Ireland - 84,284 - -
Global Commerce & Investments Ltd 104,938 101,551 - -
RJS/RB Doors - - - 456,837
RTMV Jain Ltd 155,420 78,409 - -
S Saigal - - 200,000 200,000
Saigal Furniture - - 2,300,000 1,900,000
V K Jain 153,971 - - 256,925
TheLogically Ltd 4,300 - - -
Eliza Tinsley (UK) Limited 330,000 - - -


27. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is the Director, Mrs R Jain, who owns 100% of the share capital of the company.