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COMPANY REGISTRATION NUMBER: 01942733
CUNBAR PAINTS LTD
FINANCIAL STATEMENTS
31 December 2023
CUNBAR PAINTS LTD
FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
Contents
Pages
Officers and professional advisers 1
Strategic report 2
Directors' report 3 to 4
Independent auditor's report to the members 5 to 7
Profit and loss account 8
Balance sheet 9
Statement of changes in shareholders funds 10
Statement of cash flows 11
Notes to the financial statements 12 to 19
CUNBAR PAINTS LTD
OFFICERS AND PROFESSIONAL ADVISERS
The board of directors
J S Cunnington
J McNay
M J Cunnington
G D Shaw
Z N Dunnington
Company secretary
C A Dunnington
Registered office
Unit 2, Palm Business Centre
Stock Lane
Chadderton
Oldham
OL9 9ER
Auditor
Wheawill & Sudworth Limited
Chartered Accountants & statutory auditor
35 Westgate
Huddersfield
HD1 1PA
CUNBAR PAINTS LTD
STRATEGIC REPORT
YEAR ENDED 31 DECEMBER 2023
The principal activity of the Company is that of automotive refinishing factors. Over the last 38 years Cunbar has become one of the leading and trusted suppliers of such products. The company's strategy is to have sustainable and profitable growth by expanding the product portfolio. Financial performance The Directors were satisfied with the results. Turnover has increased from £11,589,589 in 2022 to £13,619,599 in 2023. The sector has had a challenging year with inflationary pressures reducing operating profit from £387,188 to £226,154. Operational developments We continue to invest in our infrastructure and IT resources to help increase business efficiencies in the years to come allowing for extra capacity to be gained from our experienced and skilled workforce. Our people The business recognises the loyalty and dedication of its staff that helps create the success for the business with the support of the management. Over half the team have now been with the business for more than 10 years. Financial risks Liquidity continues to be managed by strict credit control procedures that minimise the risk of overdue debts. Trade creditors are paid within terms. KPIs The management focus on a range of KPIs including order intake, gross margin, stockholding levels and cash collection. Future outlook The business is well placed to deliver profitable growth, cash generation and enhanced shareholder value.
This report was approved by the board of directors on 14 August 2024 and signed on behalf of the board by:
M J Cunnington
Director
CUNBAR PAINTS LTD
DIRECTORS' REPORT
YEAR ENDED 31 DECEMBER 2023
The directors present their report and the financial statements of the company for the year ended 31 December 2023 .
Principal activities
The principal activity of the company during the year was the supply of paint to the automotive refinish sector.
Directors
The directors who served the company during the year were as follows:
J S Cunnington
J McNay
M J Cunnington
G D Shaw
Z N Dunnington
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, 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 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 the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 14 August 2024 and signed on behalf of the board by:
M J Cunnington
Director
CUNBAR PAINTS LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CUNBAR PAINTS LTD
YEAR ENDED 31 DECEMBER 2023
Opinion
We have audited the financial statements of Cunbar Paints Ltd (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, balance sheet, statement of changes in shareholders funds, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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; - 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 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 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 in 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. The financial statements for the year ended 31 December 2022 were unaudited.
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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework; Assessment of the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur; Ensured whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations; Gained clear understanding of the entity’s current activities, the scope of its authorisation and confirmed the effectiveness of its control environment where the entity is a regulated entity; As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
D M Butterworth
(Senior Statutory Auditor)
For and on behalf of
Wheawill & Sudworth Limited
Chartered Accountants & statutory auditor
35 Westgate
Huddersfield
HD1 1PA
14 August 2024
CUNBAR PAINTS LTD
PROFIT AND LOSS ACCOUNT
YEAR ENDED 31 DECEMBER 2023
2023
2022
Note
£
£
Turnover
4
13,619,599
11,589,589
Cost of sales
( 9,887,097)
( 8,258,700)
-------------
-------------
Gross profit
3,732,502
3,330,889
Administrative expenses
( 3,513,336)
( 2,778,233)
Other operating income
5
6,988
( 165,468)
------------
------------
Operating profit
6
226,154
387,188
Other interest receivable and similar income
9
79,312
10,837
Interest payable and similar expenses
10
( 11,221)
( 7,110)
------------
------------
Profit before taxation
294,245
390,915
Tax on profit
11
( 93,751)
( 94,388)
------------
------------
Profit for the financial year and total comprehensive income
200,494
296,527
------------
------------
All the activities of the company are from continuing operations.
CUNBAR PAINTS LTD
BALANCE SHEET
31 December 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
13
364,583
753,488
Current assets
Stocks
14
1,081,564
1,265,458
Debtors
15
2,717,785
3,120,813
Cash at bank and in hand
2,574,557
1,930,058
------------
------------
6,373,906
6,316,329
Creditors: amounts falling due within one year
16
( 2,431,006)
( 2,548,238)
------------
------------
Net current assets
3,942,900
3,768,091
------------
------------
Total assets less current liabilities
4,307,483
4,521,579
Creditors: amounts falling due after more than one year
17
( 90,434)
( 132,055)
Provisions
20
( 24,620)
( 31,889)
------------
------------
Net assets
4,192,429
4,357,635
------------
------------
Capital and reserves
Called up share capital
24
3,000
3,000
Capital redemption reserve
25
3,000
3,000
Profit and loss account
25
4,186,429
4,351,635
------------
------------
Shareholders funds
4,192,429
4,357,635
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 14 August 2024 , and are signed on behalf of the board by:
M J Cunnington
Director
Company registration number: 01942733
CUNBAR PAINTS LTD
STATEMENT OF CHANGES IN SHAREHOLDERS FUNDS
YEAR ENDED 31 DECEMBER 2023
Called up share capital
Capital redemption reserve
Profit and loss account
Total
£
£
£
£
At 1 January 2022
3,000
3,000
4,055,108
4,061,108
Profit for the year
296,527
296,527
------------
------------
------------
------------
Total comprehensive income for the year
296,527
296,527
At 31 December 2022
3,000
3,000
4,351,635
4,357,635
Profit for the year
200,494
200,494
------------
------------
------------
------------
Total comprehensive income for the year
200,494
200,494
Dividends paid and payable
12
( 365,700)
( 365,700)
------------
------------
------------
------------
Total investments by and distributions to owners
( 365,700)
( 365,700)
------------
------------
------------
------------
At 31 December 2023
3,000
3,000
4,186,429
4,192,429
------------
------------
------------
------------
CUNBAR PAINTS LTD
STATEMENT OF CASH FLOWS
YEAR ENDED 31 DECEMBER 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
200,494
296,527
Adjustments for:
Depreciation of tangible assets
130,455
124,748
Government grant income
165,468
Other interest receivable and similar income
( 79,312)
( 10,837)
Interest payable and similar expenses
11,221
7,110
Gains on disposal of tangible assets
( 18,952)
( 15,829)
Tax on profit
93,751
94,388
Accrued expenses
1,179
8,117
Changes in:
Stocks
183,894
( 44,594)
Trade and other debtors
403,028
( 365,297)
Trade and other creditors
( 155,000)
349,135
------------
------------
Cash generated from operations
770,758
608,936
Interest paid
( 11,221)
( 7,110)
Interest received
79,312
10,837
Tax paid
( 69,714)
( 104,479)
------------
------------
Net cash from operating activities
769,135
508,184
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 9,668)
( 26,983)
Proceeds from sale of tangible assets
384,653
37,587
------------
------------
Net cash from investing activities
374,985
10,604
------------
------------
Cash flows from financing activities
Government grant income
( 165,468)
Payments of finance lease liabilities
( 133,921)
( 108,935)
Dividends paid
( 365,700)
------------
------------
Net cash used in financing activities
( 499,621)
( 274,403)
------------
------------
Net increase in cash and cash equivalents
644,499
244,385
Cash and cash equivalents at beginning of year
1,930,058
1,685,673
------------
------------
Cash and cash equivalents at end of year
2,574,557
1,930,058
------------
------------
CUNBAR PAINTS LTD
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit 2, Palm Business Centre, Stock Lane, Chadderton, Oldham, OL9 9ER.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional curency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from these estimates. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property
-
2% straight line
Plant and machinery
-
25% straight line
Motor vehicles
-
20% straight line
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the balance sheet as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the balance sheet and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arragement, as either financial assets, financial liabilities, or equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2023
2022
£
£
Sale of goods
13,619,599
11,589,589
-------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2023
2022
£
£
Commission receivable
6,988
Government grant income
( 165,468)
------------
------------
6,988
( 165,468)
------------
------------
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
130,455
124,748
Gains on disposal of tangible assets
( 18,952)
( 15,829)
Impairment of trade debtors
159,331
4,100
------------
------------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Production staff
35
34
Administrative staff
9
8
Management staff
5
5
------------
------------
49
47
------------
------------
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
1,992,090
1,607,325
Social security costs
239,962
196,829
Other pension costs
142,339
133,456
------------
------------
2,374,391
1,937,610
------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
559,592
448,193
Company contributions to defined contribution pension plans
110,469
110,297
------------
------------
670,061
558,490
------------
------------
The number of directors who accrued benefits under company pension plans was as follows:
2023
2022
No.
No.
Defined contribution plans
5
5
------------
------------
Remuneration of the highest paid director in respect of qualifying services:
2023
2022
£
£
Aggregate remuneration
166,507
106,115
Company contributions to defined contribution pension plans
5,730
37,421
------------
------------
172,237
143,536
------------
------------
9. Other interest receivable and similar income
2023
2022
£
£
Interest on cash and cash equivalents
79,312
10,837
------------
------------
10. Interest payable and similar expenses
2023
2022
£
£
Interest on obligations under finance leases and hire purchase contracts
11,221
7,110
------------
------------
11. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
101,020
69,714
Deferred tax:
Origination and reversal of timing differences
( 7,269)
24,674
------------
------------
Tax on profit
93,751
94,388
------------
------------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: higher than) the standard rate of corporation tax in the UK of 23.52 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
294,245
390,915
------------
------------
Profit on ordinary activities by rate of tax
69,206
74,274
Effect of expenses not deductible for tax purposes
24,972
20,892
Effect of capital allowances and depreciation
( 427)
( 778)
------------
------------
Tax on profit
93,751
94,388
------------
------------
12. Dividends
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
365,700
------------
------------
13. Tangible assets
Freehold property
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
622,962
91,987
618,146
1,333,095
Additions
107,251
107,251
Disposals
( 622,962)
( 87,295)
( 710,257)
------------
------------
------------
------------
At 31 December 2023
91,987
638,102
730,089
------------
------------
------------
------------
Depreciation
At 1 January 2023
244,802
79,703
255,102
579,607
Charge for the year
12,459
2,481
115,515
130,455
Disposals
( 257,261)
( 87,295)
( 344,556)
------------
------------
------------
------------
At 31 December 2023
82,184
283,322
365,506
------------
------------
------------
------------
Carrying amount
At 31 December 2023
9,803
354,780
364,583
------------
------------
------------
------------
At 31 December 2022
378,160
12,284
363,044
753,488
------------
------------
------------
------------
14. Stocks
2023
2022
£
£
Goods for resale
1,081,564
1,265,458
------------
------------
15. Debtors
2023
2022
£
£
Trade debtors
2,230,424
2,405,452
Prepayments and accrued income
487,161
714,671
Other debtors
200
690
------------
------------
2,717,785
3,120,813
------------
------------
16. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,783,286
1,877,269
Accruals and deferred income
156,009
240,988
Corporation tax
101,020
69,714
Social security and other taxes
268,316
243,175
Obligations under finance leases and hire purchase contracts
121,987
116,704
Director's loan account
388
388
------------
------------
2,431,006
2,548,238
------------
------------
17. Creditors: amounts falling due after more than one year
2023
2022
£
£
Obligations under finance leases and hire purchase contracts
90,434
132,055
------------
------------
18. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2023
2022
£
£
Not later than 1 year
121,987
116,704
Later than 1 year and not later than 5 years
90,434
132,055
------------
------------
212,421
248,759
------------
------------
19. Secured liabilities
2023
2022
£
£
Aggregate amount of secured liabilities
212,421
248,759
------------
------------
20. Provisions
Deferred tax (note 21)
£
At 1 January 2023
31,889
Charge against provision
( 7,269)
------------
At 31 December 2023
24,620
------------
21. Deferred tax
The deferred tax included in the balance sheet is as follows:
2023
2022
£
£
Included in provisions (note 20)
24,620
31,889
------------
------------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
25,765
32,874
Other timing differences
( 1,145)
( 985)
------------
------------
24,620
31,889
------------
------------
22. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution pension plans was £ 142,339 (2022: £ 133,456 ).
23. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2023
2022
£
£
Recognised in other operating income:
Government grants recognised directly in income
( 165,468)
------------
------------
24. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
3,000
3,000
3,000
3,000
------------
------------
------------
------------
25. Reserves
Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company . Profit and loss account - This reserve records retained earnings and accumulated losses.
26. Analysis of changes in net debt
At 1 Jan 2023
Cash flows
At 31 Dec 2023
£
£
£
Cash at bank and in hand
1,930,058
644,499
2,574,557
Debt due within one year
(116,704)
(5,283)
(121,987)
Debt due after one year
(132,055)
41,621
(90,434)
------------
------------
------------
1,681,299
680,837
2,362,136
------------
------------
------------
27. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
86,200
Later than 1 year and not later than 5 years
344,800
Later than 5 years
862,000
------------
------------
1,293,000
------------
------------
28. Related party transactions
The director's loan account of £388 (2022: £388) as set out in creditors above is unsecured, currently interest free and repayable on demand. On 21 December 2023 the company transferred its property assets to the parent company, Cunbar Holdings Limited, at their aggregate net book value of £365,700. A rent charge for the company's ongoing occupation of the properties is effective from January 2024 at a starting rent of £88,200 per annum.
29. Controlling party
During the year the entire issued share capital of the company was acquired by Cunbar Holdings Limited , a company registered in England and Wales, with company number 14356144, and registered office at Unit 2 Palm Business Centre, Stock Lane, Chadderton, Oldham, OL9 9ER. This company is controlled by J S Cunnington .