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Registered number: 00366190
Rykneld Tean Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 31 December 2023
Financial Statements
Contents
Page
Strategic Report 1
Directors' Report 2
Independent Auditor's Report 3—6
Profit and Loss Account 7
Statement of Comprehensive Income 8
Balance Sheet 9
Statement of Changes in Equity 10
Statement of Cash Flows 11
Notes to the Statement of Cash Flows 12
Notes to the Financial Statements 13—23
Page 1
Strategic Report
The directors present their strategic report for the year ended 31 December 2023.
Principal Activity
The company's principal activity continues to be that of weaving of textiles.
Review of the Business
The Company continues to thrive in the post Covid-19 market. 2022 was a record year for the company and one in which we invested heavily in our operations which has allowed us to take another growth step forward in 2023 and remain at the forefront of narrow textile manufacturing in Europe.
Across the board, the performance of the Company has been outstanding. Turnover has decreased from £13.7m to £12.7m which is a gross decrease of £1m (7%). Despite the decrease in turnover, costs of production have been well managed throughout the year resulting in only a small decrease in gross profit. The gross profit margin has increased from 31.9% in 2022 to 32.8% in 2023. This management of costs is reflected all the way down the Profit & Loss Account with net profit for the year going from £999k in 2022 to £1.22m in 2023 an increase of £221k despite turnover being down by £1m.
The balance sheet provides a snapshot of the Company’s position at the end of the financial year. Current assets have been increased to £7.5m (2022 - £6.9m) whilst current liabilities has decreased to £2.08m (2022 - £3m). This has allowed for a strong cash position at the yearend of £1m, £197k higher than last year.
Net current assets continue to be strong within the Company which shall provide a stable base for the Company to move forward.
Principal Risks and Uncertainties
The key risks impacting the business are the general macro-economic climate in which we operate. These risks, namely the changes as a result of Brexit and the war in Ukraine, continue to impact material and energy prices along with our ability to transport goods in and out of the country.
On behalf of the board
Mr R J Wilkinson
Director
24 May 2024
Page 1
Page 2
Directors' Report
The directors present their report and the financial statements for the year ended 31 December 2023.
Directors
The directors who held office during the year were as follows:
Mr R J Wilkinson
Mr A Oppermann
Mr V P Fasterling
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements the directors are required to:
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved:
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Independent Auditors
The auditors, Nuvo Audit Limited, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
Mr R J Wilkinson
Director
24 May 2024
Page 2
Page 3
Independent Auditor's Report
Opinion
We have audited the financial statements of Rykneld Tean Limited for the year ended 31 December 2023 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes of Equity, Cash Flow Statement 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
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/(loss) 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions Relating to Going Concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the directors' report has been prepared in accordance with applicable legal requirements.
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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 directors' 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;
  • the financial statements are not in agreement with the accounting records or returns;
  • certain disclosures of directors' remuneration specified by law are not made;
  • we have not received all the information and explanations we require for our audit, or
  • the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.
Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 
The Company is subject to many laws and regulations within the country it operates, where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements. We identified the following laws and regulations as the most likely to have a material effect if non-compliance were to occur; financial reporting legislation, Companies Act legislation, tax legislation, anti-bribery legislation and employment law; 
We communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit; 
We understood how the Company is complying with those legal and regulatory frameworks by making enquiries of management. We corroborated our enquiries through our review of board minutes; 
We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by meeting with employees from different parts of the business to understand where it is considered there was susceptibility to fraud. We also considered performance targets and their propensity to influence efforts made by management to manage earnings. We considered the programs and controls that the Company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programs and controls. Where the risk was considered to be higher, we performed audit procedures to addressed identified fraud risk; 
Our audit procedures involved: journal entry testing, with a focus on manual credits to revenue and journals indicating large or unusual transactions based on our understanding of the business and enquiries of management. In addition, we completed audit procedures to conclude on the compliance of disclosures in the annual report and accounts with applicable financial reporting requirements; 
Assessment and appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s:
  • Understanding of, and practical experience with audit engagements of a similar nature and complexity through appropriate training and participation 
  • Knowledge of the industry in which the client operates
  • Understanding the legal and regulatory requirements specific to the entity including:
  • The provisions of the applicable legislation
  • The regulators rules and related guidance, including guidance issued by relevant authorities that interprets those rules
  • The applicable statutory provisions.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use Of Our Report
This report is made solely to the company's members, as a body, in accordance with the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters that we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Page 5
Page 6
Mr D Johnson FCCA (Senior Statutory Auditor)
for and on behalf of Nuvo Audit Limited , Statutory Auditor
24 May 2024
Page 6
Page 7
Profit and Loss Account
2023 2022
Notes £ £
TURNOVER 3 12,664,046 13,667,867
Cost of sales (8,502,993 ) (9,302,761 )
GROSS PROFIT 4,161,053 4,365,106
Distribution costs (432,363 ) (519,315 )
Administrative expenses (2,108,924 ) (2,534,385 )
OPERATING PROFIT 4 1,619,766 1,311,406
Other interest receivable and similar income 9 19,612 265
Interest payable and similar charges 10 (14,856 ) (75,942 )
PROFIT BEFORE TAXATION 1,624,522 1,235,729
Tax on Profit 11 (404,142 ) (236,988 )
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR 1,220,380 998,741
The notes on pages 12 to 23 form part of these financial statements.
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Page 8
Statement of Comprehensive Income
2023 2022
£ £
PROFIT FOR THE FINANCIAL YEAR 1,220,380 998,741
OTHER COMPREHENSIVE INCOME FOR THE YEAR - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 1,220,380 998,741
Page 8
Page 9
Balance Sheet
Registered number: 00366190
2023 2022
Notes £ £ £ £
FIXED ASSETS
Intangible Assets 12 181,748 19,515
Tangible Assets 13 947,908 1,002,895
1,129,656 1,022,410
CURRENT ASSETS
Stocks 14 2,296,827 2,076,352
Debtors 15 4,210,455 3,987,894
Cash at bank and in hand 1,003,637 806,707
7,510,919 6,870,953
Creditors: Amounts Falling Due Within One Year 16 (2,080,349 ) (2,986,602 )
NET CURRENT ASSETS (LIABILITIES) 5,430,570 3,884,351
TOTAL ASSETS LESS CURRENT LIABILITIES 6,560,226 4,906,761
Creditors: Amounts Falling Due After More Than One Year 17 (520,455 ) (102,000 )
PROVISIONS FOR LIABILITIES
Deferred Taxation 18 (84,305 ) (69,675 )
NET ASSETS 5,955,466 4,735,086
CAPITAL AND RESERVES
Called up share capital 20 1,650,000 1,650,000
Capital redemption reserve 437,445 437,445
Profit and Loss Account 3,868,021 2,647,641
SHAREHOLDERS' FUNDS 5,955,466 4,735,086
On behalf of the board
Mr R J Wilkinson
Director
24 May 2024
The notes on pages 12 to 23 form part of these financial statements.
Page 9
Page 10
Statement of Changes in Equity
Share Capital Capital Redemption Profit and Loss Account Total
£ £ £ £
As at 1 January 2022 1,650,000 437,445 1,648,900 3,736,345
Profit for the year and total comprehensive income - - 998,741 998,741
As at 31 December 2022 and 1 January 2023 1,650,000 437,445 2,647,641 4,735,086
Profit for the year and total comprehensive income - - 1,220,380 1,220,380
As at 31 December 2023 1,650,000 437,445 3,868,021 5,955,466
Page 10
Page 11
Statement of Cash Flows
2023 2022
Notes £ £
Cash flows from operating activities
Net cash generated from operations 1 41,567 699,299
Interest paid (14,856 ) (75,942 )
Tax paid (288,316 ) (224,078 )
Net cash (used in)/generated from operating activities (261,605 ) 399,279
Cash flows from investing activities
Purchase of intangible assets (164,698 ) -
Purchase of tangible assets (116,674 ) (63,190 )
Proceeds from disposal of tangible assets 5,000 48,000
Interest received 19,612 265
Net cash used in investing activities (256,760 ) (14,925 )
Cash flows from financing activities
Proceeds from new other loans 910,905 -
Repayment of other loans (194,515) -
Repayment of finance leases (1,095 ) (50,607 )
Net cash generated from/(used in) financing activities 715,295 (50,607 )
Increase in cash and cash equivalents 196,930 333,747
Cash and cash equivalents at beginning of year 2 806,707 472,960
Cash and cash equivalents at end of year 2 1,003,637 806,707
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Notes to the Statement of Cash Flows
1. Reconciliation of profit for the financial year to cash generated from operations
2023 2022
£ £
Profit for the financial year 1,220,380 998,741
Adjustments for:
Tax on profit 404,142 236,988
Interest expense 14,856 75,942
Interest income (19,612 ) (265 )
Amortisation of intangible assets 2,465 2,465
Depreciation of tangible assets 166,661 187,502
Movements in working capital:
Increase in stocks (220,475 ) (140,930 )
Increase in trade and other debtors (936,865 ) (544,798 )
Decrease in trade and other creditors (589,985 ) (116,346 )
Net cash generated from operations 41,567 699,299
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2023 2022
£ £
Cash at bank and in hand 1,003,637 806,707
3. Analysis of changes in net funds
As at 1 January 2023 Cash flows As at 31 December 2023
£ £ £
Cash at bank and in hand 806,707 196,930 1,003,637
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Notes to the Financial Statements
1. General Information
Rykneld Tean Limited is a private company, limited by shares, incorporated in England & Wales, registered number 00366190 . The registered office is Hansard Gate, The Meadows Industrial Est., Derby, Derbyshire, DE21 6RR.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Going Concern Disclosure
The financial statements have been prepared on a going concern basis. 
2.3. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
2.4. Intangible Fixed Assets and Amortisation - Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class
Amortisation method and rate
Computer software
10 Years
2.5. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Leasehold lease term
Plant & Machinery 10 years
Motor Vehicles 5 years
Fixtures & Fittings 5 years
Computer Equipment 5 years
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2.6. Leasing and Hire Purchase Contracts
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
2.7. Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
2.8. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.9. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
2.10. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
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2.11. Pensions
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Defined benefit pension obligation
Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.
The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the reporting date minus the fair value of plan assets. The defined benefit obligation is measured using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future payments by reference to market yields at the reporting date on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability.
Actuarial gains and losses are charged or credited to other comprehensive income in the period in which they arise. 
2.12. Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
2.13. Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
2.14. Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
2.16. Share Capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
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3. Turnover
Analysis of turnover by class of business is as follows:
2023 2022
£ £
Sale of goods 12,664,046 13,667,867
4. Operating Profit
The operating profit is stated after charging:
2023 2022
£ £
Bad debts 5,601 6,000
Depreciation of tangible fixed assets 166,661 187,502
Amortisation of intangible fixed assets 2,465 2,465
5. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2023 2022
£ £
Audit Services
Audit of the company's financial statements 7,500 7,500
6. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2023 2022
£ £
Wages and salaries 3,964,918 3,575,245
Other pension costs (174,065 ) 237,804
3,790,853 3,813,049
7. Average Number of Employees
Average number of employees, including directors, during the year was:
2023 2022
Office and administration 89 98
89 98
8. Directors' remuneration
2023 2022
£ £
Emoluments 186,000 196,700
186,000 196,700
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9. Interest Receivable and Similar Income
2023 2022
£ £
Bank interest receivable 19,612 265
19,612 265
10. Interest Payable and Similar Charges
2023 2022
£ £
Bank loans and overdrafts 3,384 148,352
Foreign exchange charges (22,483 ) (72,410 )
Other finance charges 33,955 -
14,856 75,942
11. Tax on Profit
The tax charge on the profit for the year was as follows:
2023 2022
£ £
Current tax
UK Corporation Tax 389,512 236,487
Deferred Tax
Deferred taxation 14,630 501
Total tax charge for the period 404,142 236,988
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows (UK standard rate for 2022 was 19%):
2023 2022
£ £
Profit before tax 1,624,522 1,235,729
Tax on profit at 23.5% (UK standard rate) 382,096 234,789
Goodwill/depreciation not allowed for tax 39,780 -
Expenses not deductible for tax purposes 772 -
Tax losses utilised - 3,644
Capital allowances (33,112 ) (1,445 )
Short term timing differences 14,630 -
Difference in tax rates (24 ) -
Total tax charge for the period 404,142 236,988
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12. Intangible Assets
Goodwill Other Total
£ £ £
Cost
As at 1 January 2023 138,745 24,650 163,395
Additions 164,698 - 164,698
As at 31 December 2023 303,443 24,650 328,093
Amortisation
As at 1 January 2023 138,745 5,135 143,880
Provided during the period - 2,465 2,465
As at 31 December 2023 138,745 7,600 146,345
Net Book Value
As at 31 December 2023 164,698 17,050 181,748
As at 1 January 2023 - 19,515 19,515
13. Tangible Assets
Land & Property
Leasehold Plant & Machinery Motor Vehicles Fixtures & Fittings
£ £ £ £
Cost
As at 1 January 2023 409,336 2,402,179 - 39,039
Additions - 4,479 100,088 10,399
Disposals - - - -
As at 31 December 2023 409,336 2,406,658 100,088 49,438
Depreciation
As at 1 January 2023 383,280 1,487,394 - 22,330
Provided during the period 1,503 146,860 1,668 8,495
As at 31 December 2023 384,783 1,634,254 1,668 30,825
Net Book Value
As at 31 December 2023 24,553 772,404 98,420 18,613
As at 1 January 2023 26,056 914,785 - 16,709
Computer Equipment Total
£ £
Cost
As at 1 January 2023 97,735 2,948,289
Additions 1,708 116,674
Disposals (5,000 ) (5,000 )
As at 31 December 2023 94,443 3,059,963
...CONTINUED
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Depreciation
As at 1 January 2023 52,390 1,945,394
Provided during the period 8,135 166,661
As at 31 December 2023 60,525 2,112,055
Net Book Value
As at 31 December 2023 33,918 947,908
As at 1 January 2023 45,345 1,002,895
14. Stocks
2023 2022
£ £
Raw materials and consumables 1,222,730 925,708
Finished goods and goods for resale 564,295 611,647
Work in progress 509,802 538,997
2,296,827 2,076,352
15. Debtors
2023 2022
£ £
Due within one year
Trade debtors 2,079,211 2,692,596
Other debtors 759,889 -
Prepayments and deferred income (Debtors < 1 year) 223,503 187,828
Amounts owed by group undertakings 1,147,852 1,107,470
4,210,455 3,987,894
Trade debtors of £1,576,981 (2022: £1,675,515) are subject to an invoice financing agreement with HSBC UK Plc.
16. Creditors: Amounts Falling Due Within One Year
2023 2022
£ £
Trade creditors 794,175 1,603,386
Amounts owed to group undertakings 270,840 -
Other creditors 31,439 315,404
Corporation tax 238,196 137,000
Taxation and social security 413,776 410,930
Accruals and deferred income 331,923 519,882
2,080,349 2,986,602
17. Creditors: Amounts Falling Due After More Than One Year
2023 2022
£ £
Amounts owed to group undertakings 467,150 -
Other creditors 53,305 102,000
520,455 102,000
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18. Deferred Taxation
The provision for deferred tax is made up as follows:
2023 2022
£ £
Other timing differences 84,305 69,675
19. Provisions for Liabilities
Deferred Tax Total
£ £
As at 1 January 2023 69,675 69,675
Additions 14,630 14,630
Balance at 31 December 2023 84,305 84,305
20. Share Capital
2023 2022
Allotted, called up and fully paid £ £
1,650,000 Ordinary Shares of £ 1.000 each 1,650,000 1,650,000
21. Other Commitments
Non-cancellable operating lease commitments:
2023 2022
£ £
Not later than one year 493,172 511,921
Later than one year and not later than five years 1,846,564 1,870,082
Later than five years 4,600,631 5,070,285
6,940,367 7,452,288
22. Pension Commitments
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £163,127 (2022 - £121,667).
Defined benefit pension scheme
Marling Industries plc (Works) Pension and Life Assurance Scheme
The Scheme is a final salary pension scheme which is funded by assets held within the Scheme. The actuarial valuation provided in these accounts is as at the balance sheet date.
The total cost relating to defined benefit schemes for the year recognized in profit or loss as an expense was £12,000 (2022 - £8,000).
The total cost relating to defined benefit schemes for the year included in the cost of an asset was £Nil (2022 - £Nil).
...CONTINUED
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22. Pension Commitments - continued
Reconciliation of scheme assets and liabilities to assets and liabilities recognized
The amounts recognized I the balance sheet are as follows:
2023
2022
£
£
Fair value of scheme assets
591,000
510,000
Present value of defined benefit obligation
(398,000)
image
(391,000)
image
Defined benefit pension scheme surplus/(deficit)
193,000
image
119,000
image
Defined benefit obligation
Changes in the defined benefit obligation are as follows:
2023
£
Present value at start of year
391,000
Interest cost
18,000
Actuarial gains and losses
18,000
Benefits paid
(29,000)
image
Present value at the end of year
398,000
image
Fair value of scheme assets
Changes in the fair value of scheme assets are as follows:
2023
£
Fair value at start of year
510,000
Return on plan assets, excluding amounts included in interest income/(expense)
26,000
Actuarial gains and losses
(25,000)
Employer contributions
121,000
Benefits paid
(29,000)
Expenses paid from scheme
(12,000)
image
Fair value at end of year
591,000
image
Analysis of assets
The major categories of scheme assets are as follows:
2023
2022
£
£
Cash and cash equivalents
591,000
510,000
...CONTINUED
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22. Pension Commitments - continued
Return on scheme assets
2023
2022
£
£
Return on scheme assets
26,000
8,000
The pension scheme has not invested in any of the company’s own financial instruments or in properties or other assets used by the company.
Principal actuarial assumptions
The principal actuarial assumptions at the balance sheet date are as follows:
2023
2022
%
%
Mortality rate
1.25
1.25
Discount rate
4.45
4.75
Future pension increases
3.15
3.60
Inflation
3.30
3.25
Post retirement mortality assumptions
2023
2022
Years
Years
Current UK pensioners at retirement age - Male
21.40
21.10
Current UK pensioners at retirement age - Female
23.90
23.80
23. Related Party Disclosures
Spa Web Limited
A company related by virtue of the shareholding of Mr A Oppermann.
The amount outstanding to the company at the balance sheet date is £nil (2022 - £746,207)
E Oppermann Mech. Gurt-Und Bandweberei GmbH
A company related by virtue of the shareholding of A Oppermann.
During the year the company made purchases from the related party amounting to £259,200 (2022 - £259,200). 
During the year the company borrowed from the related party an amount of £910,905. Repayments of £194,515 were made during the year and interest of £33,955 was paid on the loan.
The amount outstanding to the related party at the balance sheet date is £737,990 (2022 - £21,600).
Oppermann UK Limited
At 31 December 2023 the company was owed £1,107,470 (2022 - £1,107,470) by Oppermann UK Limited, the immediate parent undertaking. The amount is interest free and has no fixed repayment date.
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24. Controlling Parties
The company's immediate parent is Oppermann UK Limited, incorporated in England.
The ultimate parent is E. Oppermann Mech. Gurt-Und Bandweberei GmbH, incorporated in Germany.
The most senior parent entity producing publicly available financial statements is E. Oppermann Mech. Gurt-Und Bandweberei GmbH. These financial statements are available upon request from Hullerser Landstrasse 12, D-37574 Einbeck.
The ultimate controlling party is Mr A Oppermann.
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