Company registration number 00595445 (England and Wales)
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
COMPANY INFORMATION
Directors
Mrs M Hutchinson
Mr K E Hutchinson
Mrs R E Maddocks
Mr W Maddocks
Mr P D Bracegirdle
Secretary
Mr K E Hutchinson
Company number
00595445
Registered office
Unit E1-E6 Capital Point
Capital Business Park
Parkway
Cardiff
CF3 2PY
Auditor
UHY Hacker Young
Bradbury House
Mission Court
Newport
Gwent
United Kingdom
NP20 2DW
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 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 financial statements
12 - 25
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

The company continues to distribute spares and accessories to the domestic appliance market in the UK and overseas.

 

Sales were down during the year by 1% as tough trading conditions continued. Margin was closely monitored and consequently showed a 2% increase leading to an increased bottom line.

 

Inventory was further reduced by 19%, as a result of improved far eastern lead times and lower landed costs.

 

Cash reserves were increased as a result of the above factors together with reduced overheads.

Principal risks and uncertainties

Currency risk is managed using hedging products and currency bank accounts.

 

Interest rate risk in the year is not considered material but is hedged should the rates become more variable.

 

Market pricing risk is managed by control of costs and of sourcing product.

 

Credit risk is managed in close association with our credit agency and by our dunning procedures.

 

Liquidity risk is managed through our long-standing variable arrangement with our bankers together with close control over cashflow provided by our ERP system.

Key performance indicators

We use KPI’s to monitor the daily performance of the company.

 

These include the usual sales and margin ratios together with stock turn.

 

Other balance sheet ratios are monitored such as debtor days and creditor days along with sale returns and profitability.

On behalf of the board

Mr K E Hutchinson
Director
4 September 2024
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Principal activities

The principal activity of the company in the year under review was that of wholesale distributors of spare parts for domestic appliances.

Results and dividends

The results for the year are set out on page 7. A fair review of the business is set out in the strategic report on page 1.

Ordinary dividends were paid amounting to £109,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mrs M Hutchinson
Mr K E Hutchinson
Mrs R E Maddocks
Mr W Maddocks
Mr P D Bracegirdle
Auditor

The auditor, UHY Hacker Young, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr K E Hutchinson
Director
4 September 2024
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
- 4 -
Opinion

We have audited the financial statements of H.T. Maddocks and Son (Whitchurch) Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company's financial statements to material misstatements, including obtaining an understanding of how fraud might occur, by:

H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
- 6 -

To address risk of fraud through management bias and override of controls, we:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from the financial statements, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 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.

Mr John Griffiths (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
5 September 2024
Chartered Accountants
Statutory Auditor
Newport
Gwent
United Kingdom
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
13,800,773
13,985,819
Cost of sales
(9,915,193)
(10,378,207)
Gross profit
3,885,580
3,607,612
Administrative expenses
(2,979,710)
(2,996,591)
Other operating income
13,735
24,701
Operating profit
4
919,605
635,722
Interest receivable and similar income
7
33,088
-
0
Interest payable and similar expenses
8
(8,966)
(24,551)
Other gains and losses
9
(100)
21,037
Profit before taxation
943,627
632,208
Tax on profit
10
(222,898)
(116,869)
Profit for the financial year
720,729
515,339

The profit and loss account has been prepared on the basis that all operations are continuing operations.

H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
720,729
515,339
Other comprehensive income
-
-
Total comprehensive income for the year
720,729
515,339
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
13
1,436
-
0
Tangible assets
14
547,800
557,217
Investments
15
5,400
4,000
554,636
561,217
Current assets
Stocks
18
3,601,920
4,451,268
Debtors
19
1,115,350
1,389,358
Cash at bank and in hand
2,204,825
541,130
6,922,095
6,381,756
Creditors: amounts falling due within one year
20
(1,601,717)
(1,677,430)
Net current assets
5,320,378
4,704,326
Total assets less current liabilities
5,875,014
5,265,543
Provisions for liabilities
Deferred tax liability
21
136,501
138,759
(136,501)
(138,759)
Net assets
5,738,513
5,126,784
Capital and reserves
Called up share capital
23
69,460
69,460
Share premium account
282
282
Capital redemption reserve
241,520
241,520
Profit and loss reserves
5,427,251
4,815,522
Total equity
5,738,513
5,126,784

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 4 September 2024 and are signed on its behalf by:
Mr K E Hutchinson
Director
Company registration number 00595445 (England and Wales)
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
69,460
282
241,520
4,394,183
4,705,445
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
515,339
515,339
Dividends
11
-
-
-
(94,000)
(94,000)
Balance at 31 December 2022
69,460
282
241,520
4,815,522
5,126,784
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
720,729
720,729
Dividends
11
-
-
-
(109,000)
(109,000)
Balance at 31 December 2023
69,460
282
241,520
5,427,251
5,738,513
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
1,954,468
911,385
Interest paid
(13,200)
(24,551)
Income taxes paid
(112,577)
(275,162)
Net cash inflow from operating activities
1,828,691
611,672
Investing activities
Purchase of intangible assets
(1,436)
-
0
Purchase of tangible fixed assets
(90,382)
(109,311)
Purchase of associates
(1,500)
-
0
Proceeds from disposal of investments
-
0
21,138
Interest received
33,088
-
0
Net cash used in investing activities
(60,230)
(88,173)
Financing activities
Proceeds from derivatives
4,234
-
0
Dividends paid
(109,000)
(94,000)
Net cash used in financing activities
(104,766)
(94,000)
Net increase in cash and cash equivalents
1,663,695
429,499
Cash and cash equivalents at beginning of year
541,130
111,631
Cash and cash equivalents at end of year
2,204,825
541,130
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

H.T. Maddocks and Son (Whitchurch) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit E1-E6 Capital Point, Capital Business Park, Parkway, Cardiff, CF3 2PY.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

1.4
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
over 5 years
Branding
over 5 years
1.5
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 improvement
10% on cost
Plant and machinery
10% on cost
Computer equipment
20% on cost
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

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.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

1.8
Financial instruments

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

 

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.

H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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.

 

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit and loss account in the period to which they relate.

1.12
Leases

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 leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

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

 

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

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stock valuation

At the year end the company held stock of £3,601,920 (2022: £4,451,268). Stock is valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends.

H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 16 -
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.

Useful economic lives of fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to change in the estimated useful economic lives of the assets. The useful economic lives are re-assessed and amended when necessary to reflect current estimates, based in technological advancement, future investments, economic utilisation and the physical condition of the assets.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
12,575,915
12,892,686
Europe
1,170,786
1,015,693
Rest of the World
54,072
77,440
13,800,773
13,985,819
2023
2022
£
£
Other revenue
Interest income
33,088
-
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
16,800
16,300
Depreciation of owned tangible fixed assets
99,781
92,276
Loss on disposal of tangible fixed assets
18
230
Operating lease charges
380,089
538,465
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Distribution
27
28
Office
19
21
Total
46
49

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,601,680
1,551,430
Social security costs
158,218
161,798
Pension costs
58,450
58,208
1,818,348
1,771,436
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
344,755
356,593
Company pension contributions to defined contribution schemes
7,176
12,802
351,931
369,395

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
92,888
98,850
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
33,088
-
0
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Interest receivable and similar income
(Continued)
- 18 -
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
33,088
-
0
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on invoice finance arrangements
-
0
6,838
Other interest on financial liabilities
13,200
13,200
13,200
20,038
Other finance costs:
Gain on hedging instrument in a fair value hedge
(4,234)
-
0
Other interest
-
0
4,513
8,966
24,551
9
Other gains and losses
2023
2022
£
£
Gain on disposal of fixed asset investments
-
0
21,037
Amounts written off investments
(100)
-
(100)
21,037
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
225,156
112,577
Deferred tax
Origination and reversal of timing differences
(2,258)
4,292
Total tax charge
222,898
116,869
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 19 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
943,627
632,208
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
221,946
120,120
Tax effect of expenses that are not deductible in determining taxable profit
1,155
300
Tax effect of income not taxable in determining taxable profit
-
0
(3,997)
Effect of change in corporation tax rate
(123)
1,237
Permanent capital allowances in excess of depreciation
(171)
(860)
Depreciation on assets not qualifying for tax allowances
91
69
Taxation charge for the year
222,898
116,869
11
Dividends
2023
2022
£
£
Final paid
100,000
85,000
Interim paid
9,000
9,000
109,000
94,000
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Fixed asset investments
15
100
-
Recognised in:
Amounts written off investments
100
-

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
13
Intangible fixed assets
Patents
Branding
Total
£
£
£
Cost
At 1 January 2023
650
-
0
650
Additions
-
0
1,436
1,436
At 31 December 2023
650
1,436
2,086
Amortisation and impairment
At 1 January 2023 and 31 December 2023
650
-
0
650
Carrying amount
At 31 December 2023
-
0
1,436
1,436
At 31 December 2022
-
0
-
0
-
0
14
Tangible fixed assets
Leasehold improvement
Plant and machinery
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2023
4,212
833,817
101,293
939,322
Additions
-
0
77,025
13,357
90,382
Disposals
-
0
-
0
(5,748)
(5,748)
At 31 December 2023
4,212
910,842
108,902
1,023,956
Depreciation and impairment
At 1 January 2023
2,029
322,070
58,006
382,105
Depreciation charged in the year
385
81,869
17,527
99,781
Eliminated in respect of disposals
-
0
-
0
(5,730)
(5,730)
At 31 December 2023
2,414
403,939
69,803
476,156
Carrying amount
At 31 December 2023
1,798
506,903
39,099
547,800
At 31 December 2022
2,183
511,747
43,287
557,217
15
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
16
-
0
100
Investments in associates
17
5,400
3,900
5,400
4,000
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Fixed asset investments
(Continued)
- 21 -
Movements in fixed asset investments
Shares in subsidiaries and associates
£
Cost or valuation
At 1 January 2023
4,000
Additions
1,500
Disposals
(100)
At 31 December 2023
5,400
Carrying amount
At 31 December 2023
5,400
At 31 December 2022
4,000

During the year, the company increased its shareholding in its associate, Europart Distribution Limited from 25% to 33%.

 

The company also acquired 100% of the shareholding in Bayswater Products Limited.

 

In addition, Ashcroft Agencies Limited was dissolved in the year, so the investment in this subsidiary was disposed of.

 

16
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
R.A. Jackson Limited
E1-E6 Capital Point, Capital Business Park, Cardiff, CF3 2PY
Ordinary
100.00
Bayswater Products Limited
Bradbury House, Mission Court, Newport, Gwent, NP20 2DW
Ordinary
100.00
17
Associates

Details of the company's associates at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Europart Distribution Limited
E1-E6 Capital Point, Capital Business Park, Cardiff, CF3 2PY
Ordinary
33.00
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
18
Stocks
2023
2022
£
£
Finished goods
3,601,920
4,451,268
19
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
829,726
1,011,631
Amounts owed by group undertakings
472
-
0
Other debtors
85,517
195,210
Prepayments and accrued income
199,635
182,517
1,115,350
1,389,358
20
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
362,499
457,979
Corporation tax
225,156
112,577
Other taxation and social security
305,862
308,763
Other creditors
221,296
223,317
Accruals and deferred income
486,904
574,794
1,601,717
1,677,430
21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
136,501
138,759
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Deferred taxation
(Continued)
- 23 -
2023
Movements in the year:
£
Liability at 1 January 2023
138,759
Credit to profit or loss
(2,258)
Liability at 31 December 2023
136,501

The deferred tax liability set out above relates to accelerated capital allowances and this is expected to reverse over the useful economic lives of the related assets.

22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
58,450
58,208

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.

23
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
68,560
68,560
68,560
68,560
Ordinary B shares of £1 each
900
900
900
900
69,460
69,460
69,460
69,460
24
Financial commitments, guarantees and contingent liabilities

On 15 May 1995, the company together with R.A. Jackson Limited entered into an unlimited multilateral guarantee in favour of HSBC Bank Plc.

25
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
232,541
442,906
Between two and five years
363,465
252,320
596,006
695,226
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
26
Directors' transactions

Included within other creditors are loans due to directors as detailed below. The loans are unsecured and payable on demand.

Dividends totalling £103,000 (2022 - £88,150) were paid in the year in respect of shares held by the company's directors.

27
Related party transactions
Transactions with related parties

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

The company has taken advantage of the exemption available in accordance with FRS102 Section 33 'Related party disclosures' not to disclose transactions entered into with wholly owned subsidiaries within the group.

 

During the year, the company had sales totalling £11,238 (2022: £1,217) and purchases totalling £6,645 (2022: £5,155) with Europart Distribution Limited, its associate company. At the year end, there was a debtor balance owed by Europart Distribution Limited to the company of £4,900 (2022: £3,308).

28
Ultimate controlling party

The ultimate controlling party is Mr W Maddocks.

29
Analysis of changes in net funds
1 January 2023
Cash flows
Market value movements
31 December 2023
£
£
£
£
Cash at bank and in hand
541,130
1,663,695
-
2,204,825
Derivatives relating to debt
-
4,234
(4,234)
-
541,130
1,667,929
(4,234)
2,204,825
H.T. MADDOCKS AND SON (WHITCHURCH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
30
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
720,729
515,339
Adjustments for:
Taxation charged
222,898
116,869
Finance costs
8,966
24,551
Investment income
(33,088)
-
0
Loss on disposal of tangible fixed assets
18
230
Depreciation and impairment of tangible fixed assets
99,781
92,276
Gain on sale of investments
-
(21,037)
Other gains and losses
100
-
Movements in working capital:
Decrease in stocks
849,348
1,435,548
Decrease in debtors
274,008
126,096
Decrease in creditors
(188,292)
(1,378,487)
Cash generated from operations
1,954,468
911,385
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