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COMPANY REGISTRATION NUMBER: 04047701
WOOLTEX UK LIMITED
FINANCIAL STATEMENTS
31 December 2023
WOOLTEX UK LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
Contents
Page
Strategic report 1
Directors' report 3
Independent auditor's report to the members 5
Consolidated profit and loss account 9
Consolidated balance sheet 10
Balance sheet 11
Consolidated statement of changes in equity 12
Company statement of changes in equity 13
Consolidated statement of cash flows 14
Notes to the financial statements 15
WOOLTEX UK LIMITED
STRATEGIC REPORT
YEAR ENDED 31 DECEMBER 2023
The principal activity of the group continued to be the design, manufacture and sale of fabrics for the contract upholstery market. Results, Performance and Developments during the year I am pleased to report another profitable year for the group during 2023 despite experiencing significant headwinds. Sales have been impacted by challenging market conditions due to lower general economic activity. Sales during the year were lower by 15.8% when compared to 2022. Action has been taken to reduce the group's cost base and bring our internal production levels into line with current sales. Nevertheless, we are well placed to take advantage of an upturn in future sales. Our new spinning company was profitable during its first full year of operation, and we anticipate future growth in profit as our general sales recover. Despite the difficult sales environment the group has continued to be debt free. We continue to monitor the effects of our business on the environment and instigate change where necessary. The directors would like to thank all employees and suppliers for their hard work and support during the year. Principal risks and uncertainties The Directors consider that the key risks and principal uncertainties faced by the company are: Raw material price volatility Exchange rate variances Supply chain disruption These risks are managed through monitoring of the appropriate markets, the use of forward contracts and currency hedges, maintaining close supplier relationships and dual sourcing of key resources. Financial Instruments Due to the nature of the financial instruments used by the company there is no material exposure to price risk. The company's approach to managing other risk applicable to the financial instruments concerned are shown below. In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of short term funding. Trade debtors are managed in respect of credit and cash flow by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. Key Performance indicators Key performance indicators monitored by management include order in-take, gross margin, stock volumes and cash collection. Outlook The directors continue to examine opportunities for further development of the business and its efficiencies. The directors have considered the results of the current financial year up to the date of this report, and despite the difficult market conditions expect to further enhance shareholder value in 2024.
This report was approved by the board of directors on 5 March 2024 and signed on behalf of the board by:
Mr P Timmins Chairman
WOOLTEX UK LIMITED
DIRECTORS' REPORT
YEAR ENDED 31 DECEMBER 2023
The directors present their report and the financial statements of the group for the year ended 31 December 2023 .
Directors
The directors who served the company during the year were as follows:
Mr P Timmins
Kvadrat A/S
Mr R D Brook
Mr C Winrow
Mrs S J Shirley
Dividends
Particulars of recommended dividends are detailed in note 13 to the financial statements.
Strategic report
In accordance with Section 414C(11), Companies Act 2006, the following information required to be contained in this report is set out in the company's Strategic Report on page 2 and 3: principal activities, key risks and principal uncertainties, business review, future developments, and key performance indicators.
Directors' responsibilities statement
The directors are responsible for preparing 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 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 group and 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 group and the company's auditor is aware of that information.
This report was approved by the board of directors on 5 March 2024 and signed on behalf of the board by:
Mr P Timmins Chairman
WOOLTEX UK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WOOLTEX UK LIMITED
YEAR ENDED 31 DECEMBER 2023
Opinion
We have audited the financial statements of Wooltex UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the consolidated profit and loss account, consolidated balance sheet, balance sheet, consolidated statement of changes in equity, company statement of changes in equity, consolidated 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 group's and of the parent company's affairs as at 31 December 2023 and of the group's 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 group 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 group's or the parent 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. 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 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 group and the parent 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent company 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
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; Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. As 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 group's 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 group's or the parent 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 group or the parent 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. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. 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.
David Butterworth
(Senior Statutory Auditor)
For and on behalf of
Wheawill & Sudworth Limited
Chartered Accountants & statutory auditor
35 Westgate
Huddersfield
HD1 1PA
5 March 2024
WOOLTEX UK LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT
YEAR ENDED 31 DECEMBER 2023
2023
2022
Note
£
£
Turnover
4
19,489,537
23,159,356
Cost of sales
( 14,832,047)
( 18,824,892)
-------------
-------------
Gross profit
4,657,490
4,334,464
Administrative expenses
( 2,011,868)
( 1,890,416)
Other operating income
5
33,212
136,433
------------
------------
Operating profit
6
2,678,834
2,580,481
Other interest receivable and similar income
10
314
Interest payable and similar expenses
11
( 1,356)
( 5,534)
------------
------------
Profit before taxation
2,677,478
2,575,261
Tax on profit
12
( 747,413)
( 318,883)
------------
------------
Profit for the financial year and total comprehensive income
1,930,065
2,256,378
------------
------------
All the activities of the group are from continuing operations.
WOOLTEX UK LIMITED
CONSOLIDATED BALANCE SHEET
31 December 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
14
7,146,641
8,210,534
Current assets
Stocks
16
3,783,237
2,290,055
Debtors
17
3,485,165
267,603
Cash at bank and in hand
715,043
1,840,488
------------
------------
7,983,445
4,398,146
Creditors: amounts falling due within one year
18
3,168,081
1,985,301
------------
------------
Net current assets
4,815,364
2,412,845
-------------
-------------
Total assets less current liabilities
11,962,005
10,623,379
Creditors: amounts falling due after more than one year
19
56,642
88,607
Provisions
Taxation including deferred tax
20
1,259,490
688,983
-------------
-------------
Net assets
10,645,873
9,845,789
-------------
-------------
Capital and reserves
Called up share capital
24
5,318
5,318
Share premium account
25
44,626
44,626
Capital redemption reserve
25
106
106
Profit and loss account
25
10,595,823
9,795,739
-------------
------------
Shareholders funds
10,645,873
9,845,789
-------------
------------
These financial statements were approved by the board of directors and authorised for issue on 5 March 2024 , and are signed on behalf of the board by:
Mr P Timmins Mr C Winrow
Chairman Director
Company registration number: 04047701
WOOLTEX UK LIMITED
BALANCE SHEET
31 December 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
14
2,433,004
3,010,440
Investments
15
100
100
------------
------------
2,433,104
3,010,540
Current assets
Stocks
16
2,693,870
1,680,198
Debtors
17
7,748,261
7,036,296
Cash at bank and in hand
357,153
1,151,341
-------------
------------
10,799,284
9,867,835
Creditors: amounts falling due within one year
18
1,450,754
1,501,178
-------------
------------
Net current assets
9,348,530
8,366,657
-------------
-------------
Total assets less current liabilities
11,781,634
11,377,197
Creditors: amounts falling due after more than one year
19
56,642
88,607
Provisions
Taxation including deferred tax
20
280,490
326,983
-------------
-------------
Net assets
11,444,502
10,961,607
-------------
-------------
Capital and reserves
Called up share capital
24
5,318
5,318
Share premium account
25
44,626
44,626
Capital redemption reserve
25
106
106
Profit and loss account
25
11,394,452
10,911,557
-------------
-------------
Shareholders funds
11,444,502
10,961,607
-------------
-------------
The profit for the financial year of the parent company was £ 1,612,876 (2022: £ 3,372,196 ).
These financial statements were approved by the board of directors and authorised for issue on 5 March 2024 , and are signed on behalf of the board by:
Mr P Timmins Mr C Winrow
Chairman Director
Company registration number: 04047701
WOOLTEX UK LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
YEAR ENDED 31 DECEMBER 2023
Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total
£
£
£
£
£
At 1 January 2022
5,318
44,626
106
12,539,361
12,589,411
Profit for the year
2,256,378
2,256,378
------------
------------
------------
-------------
-------------
Total comprehensive income for the year
2,256,378
2,256,378
Dividends paid and payable
13
( 5,000,000)
( 5,000,000)
------------
------------
------------
-------------
-------------
Total investments by and distributions to owners
( 5,000,000)
( 5,000,000)
At 31 December 2022
5,318
44,626
106
9,795,739
9,845,789
Profit for the year
1,930,065
1,930,065
------------
------------
------------
-------------
-------------
Total comprehensive income for the year
1,930,065
1,930,065
Dividends paid and payable
13
( 1,129,981)
( 1,129,981)
------------
------------
------------
------------
------------
Total investments by and distributions to owners
( 1,129,981)
( 1,129,981)
------------
------------
------------
-------------
-------------
At 31 December 2023
5,318
44,626
106
10,595,823
10,645,873
------------
------------
------------
-------------
-------------
WOOLTEX UK LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
YEAR ENDED 31 DECEMBER 2023
Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total
£
£
£
£
£
At 1 January 2022
5,318
44,626
106
12,539,361
12,589,411
Profit for the year
3,372,196
3,372,196
------------
------------
------------
-------------
-------------
Total comprehensive income for the year
3,372,196
3,372,196
Dividends paid and payable
13
( 5,000,000)
( 5,000,000)
------------
------------
------------
-------------
-------------
Total investments by and distributions to owners
( 5,000,000)
( 5,000,000)
At 31 December 2022
5,318
44,626
106
10,911,557
10,961,607
Profit for the year
1,612,876
1,612,876
------------
------------
------------
-------------
-------------
Total comprehensive income for the year
1,612,876
1,612,876
Dividends paid and payable
13
( 1,129,981)
( 1,129,981)
------------
------------
------------
------------
------------
Total investments by and distributions to owners
( 1,129,981)
( 1,129,981)
------------
------------
------------
-------------
-------------
At 31 December 2023
5,318
44,626
106
11,394,452
11,444,502
------------
------------
------------
-------------
-------------
WOOLTEX UK LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
YEAR ENDED 31 DECEMBER 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
1,930,065
2,256,378
Adjustments for:
Depreciation of tangible assets
1,415,308
1,545,391
Government grant income
( 33,212)
( 136,433)
Other interest receivable and similar income
( 314)
Interest payable and similar expenses
1,356
5,534
Gains on disposal of tangible assets
( 3,363)
Tax on profit
747,413
318,883
Changes in:
Stocks
( 1,493,182)
( 778,203)
Trade and other debtors
( 3,217,562)
1,851,476
Trade and other creditors
990,984
( 1,040,569)
------------
------------
Cash generated from operations
341,170
4,018,780
Interest paid
( 1,356)
( 5,534)
Interest received
314
Tax paid
( 17,075)
( 581,473)
------------
------------
Net cash from operating activities
322,739
3,432,087
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 390,066)
( 6,141,290)
Proceeds from sale of tangible assets
38,651
117,819
------------
------------
Net cash used in investing activities
( 351,415)
( 6,023,471)
------------
------------
Cash flows from financing activities
Government grant income
33,212
136,433
Dividends paid
( 1,129,981)
( 5,000,000)
------------
------------
Net cash used in financing activities
( 1,096,769)
( 4,863,567)
------------
------------
Net decrease in cash and cash equivalents
( 1,125,445)
( 7,454,951)
Cash and cash equivalents at beginning of year
1,840,488
9,295,439
------------
------------
Cash and cash equivalents at end of year
715,043
1,840,488
------------
------------
WOOLTEX UK LIMITED
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, registration number 4047701. The address of the registered office is Woodland Mill, Dale Street, Huddersfield, West Yorkshire, HD3 4TG.
2. Statement of compliance
The 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 currency of the entity.
Debtors and creditors receivable/payable within one year
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.
Disclosure exemptions
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:
(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) No disclosure has been given for the aggregate remuneration of key management personnel.
Consolidation
The financial statements consolidate the financial statements of Wooltex UK Limited and all of its subsidiary undertakings.
The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.
The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.
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. 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.
Revenue recognition
Turnover represents amounts invoiced during the year, exclusive of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
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. 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 represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences with certain exemptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only 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 tax rates and laws that have been enacted or substantially enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated 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:
Short Leasehold Property
-
straight line over period of lease
Plant & Machinery
-
15% reducing balance
Fixtures and Fittings
-
15% reducing balance
Motor Vehicles
-
25% reducing balance
Office Equipment
-
33% on cost
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
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.
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. 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.
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 liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial 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 and services
19,489,537
23,159,356
-------------
-------------
The turnover is attributable to the one principal activity of the company. The vast majority of sales are made into the European market.
5. Other operating income
2023
2022
£
£
Government grant income
33,212
136,433
------------
------------
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
1,415,308
1,545,391
Gains on disposal of tangible assets
( 3,363)
Foreign exchange differences
12,191
( 14,283)
------------
------------
7. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
20,500
20,500
------------
------------
Fees payable to the company's auditor for other services:
Other non-audit services
7,245
8,323
------------
------------
8. Staff costs
The average number of persons employed by the group during the year, including the directors, amounted to:
2023
2022
No.
No.
Production staff
148
134
Administrative staff
17
16
Management staff
8
8
------------
------------
173
158
------------
------------
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
5,661,782
4,735,401
Social security costs
574,615
482,249
Other pension costs
139,428
111,298
------------
------------
6,375,825
5,328,948
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
515,460
500,403
Company contributions to defined contribution pension plans
44,630
32,874
------------
------------
560,090
533,277
------------
------------
The number of directors who accrued benefits under company pension plans was as follows:
2023
2022
No.
No.
Defined contribution plans
4
4
------------
------------
Remuneration of the highest paid director in respect of qualifying services:
2023
2022
£
£
Aggregate remuneration
195,368
146,305
------------
------------
10. Other interest receivable and similar income
2023
2022
£
£
Bank interest receivable
314
------------
------------
11. Interest payable and similar expenses
2023
2022
£
£
Interest charges
1,356
5,534
------------
------------
12. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
159,831
( 15,903)
Adjustments in respect of prior periods
17,075
( 17,076)
------------
------------
Total current tax
176,906
( 32,979)
------------
------------
Deferred tax:
Origination and reversal of timing differences
570,507
351,862
------------
------------
Tax on profit
747,413
318,883
------------
------------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: lower than) the standard rate of corporation tax in the UK of 23.52 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
2,677,478
2,575,261
------------
------------
Profit on ordinary activities by rate of tax
629,743
490,347
Adjustment to tax charge in respect of prior periods
17,075
( 17,076)
Effect of expenses not deductible for tax purposes
12,553
5,542
Effect of capital allowances and depreciation
53,501
( 533,588)
Effect of different UK tax rates on some earnings
44,270
Unused tax losses
741,656
Adjustment to closing deferred tax to average rate
( 91,117)
Income not taxable for tax purposes
( 7,811)
( 6,589)
Effect of capital allowance superdeduction
( 1,918)
( 270,545)
Other timing differences
253
------------
------------
Tax on profit
747,413
318,883
------------
------------
13. Dividends
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
1,129,980
5,000,000
------------
------------
14. Tangible assets
Group
Short leasehold property
Plant and machinery
Fixtures and fittings
Equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
4,221,815
11,013,516
121,066
154,156
15,510,553
Additions
115,700
260,342
3,101
10,923
390,066
Disposals
( 49,393)
( 49,393)
------------
-------------
------------
------------
-------------
At 31 December 2023
4,337,515
11,224,465
124,167
165,079
15,851,226
------------
-------------
------------
------------
-------------
Depreciation
At 1 January 2023
2,191,707
4,890,703
70,364
147,245
7,300,019
Charge for the year
438,686
951,729
16,425
8,468
1,415,308
Disposals
( 10,742)
( 10,742)
------------
-------------
------------
------------
-------------
At 31 December 2023
2,630,393
5,831,690
86,789
155,713
8,704,585
------------
-------------
------------
------------
-------------
Carrying amount
At 31 December 2023
1,707,122
5,392,775
37,378
9,366
7,146,641
------------
-------------
------------
------------
-------------
At 31 December 2022
2,030,108
6,122,813
50,702
6,911
8,210,534
------------
-------------
------------
------------
-------------
Company
Short leasehold property
Plant and machinery
Fixtures and fittings
Equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
2,807,363
6,429,439
84,375
154,156
9,475,333
Additions
44,738
412
10,923
56,073
------------
------------
------------
------------
------------
At 31 December 2023
2,807,363
6,474,177
84,787
165,079
9,531,406
------------
------------
------------
------------
------------
Depreciation
At 1 January 2023
2,050,262
4,208,702
58,684
147,245
6,464,893
Charge for the year
284,402
336,724
3,915
8,468
633,509
------------
------------
------------
------------
------------
At 31 December 2023
2,334,664
4,545,426
62,599
155,713
7,098,402
------------
------------
------------
------------
------------
Carrying amount
At 31 December 2023
472,699
1,928,751
22,188
9,366
2,433,004
------------
------------
------------
------------
------------
At 31 December 2022
757,101
2,220,737
25,691
6,911
3,010,440
------------
------------
------------
------------
------------
15. Investments
The group has no investments.
Company
Shares in group undertakings
£
Cost
At 1 January 2023 and 31 December 2023
100
------------
Impairment
At 1 January 2023 and 31 December 2023
------------
Carrying amount
At 1 January 2023 and 31 December 2023
100
------------
At 31 December 2022
100
------------
Subsidiaries, associates and other investments
Details of the investments in which the parent company has an interest of 20% or more are as follows:
Registered office
Class of share
Percentage of shares held
Subsidiary undertakings
Wooltex Spinning Company Limited
Woodland Mill, Dale Street
Ordinary
100
Longwood
Huddersfield
HD3 4TG
16. Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
1,903,570
1,486,500
1,639,246
876,643
Work in progress
912,691
753,229
710,694
753,229
Finished goods and goods for resale
966,976
50,326
343,930
50,326
------------
------------
------------
------------
3,783,237
2,290,055
2,693,870
1,680,198
------------
------------
------------
------------
17. Debtors
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade debtors
3,154,182
76,302
2,448,653
59,485
Amounts owed by group undertakings
5,025,290
6,813,444
Prepayments and accrued income
163,252
69,942
106,587
42,008
Other debtors
167,731
121,359
167,731
121,359
------------
------------
------------
------------
3,485,165
267,603
7,748,261
7,036,296
------------
------------
------------
------------
The balance owed by group undertakings is likely to be recovered mainly more than one year after the balance sheet date.
18. Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
2,403,487
1,407,108
1,046,380
1,280,879
Amounts owed to group undertakings
100
100
Accruals and deferred income
175,116
198,523
91,717
68,619
Corporation tax
159,831
159,831
Social security and other taxes
408,973
365,815
132,052
137,725
Other creditors
20,674
13,855
20,674
13,855
------------
------------
------------
------------
3,168,081
1,985,301
1,450,754
1,501,178
------------
------------
------------
------------
19. Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Accruals and deferred income
56,642
88,607
56,642
88,607
------------
------------
------------
------------
20. Provisions
Group
Deferred tax (note 21)
£
At 1 January 2023
688,983
Additions
617,000
Charge against provision
( 46,493)
------------
At 31 December 2023
1,259,490
------------
Company
Deferred tax (note 21)
£
At 1 January 2023
326,983
Charge against provision
( 46,493)
------------
At 31 December 2023
280,490
------------
21. Deferred tax
The deferred tax included in the balance sheet is as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Included in provisions (note 20)
1,259,490
688,983
280,490
326,983
------------
------------
------------
------------
The deferred tax account consists of the tax effect of timing differences in respect of:
Group
Company
2023
2022
2023
2022
£
£
£
£
Accelerated capital allowances
1,263,658
689,837
284,658
327,837
Other timing differences
( 4,168)
( 854)
( 4,168)
( 854)
------------
------------
------------
------------
1,259,490
688,983
280,490
326,983
------------
------------
------------
------------
22. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution pension plans was £ 139,428 (2022: £ 111,298 ).
23. Government grants
The amounts recognised in the financial statements for government grants are as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Recognised in creditors:
Deferred government grants due within one year
31,965
33,212
31,965
33,212
Deferred government grants due after more than one year
56,642
88,607
56,642
88,607
------------
------------
------------
------------
88,607
121,819
88,607
121,819
------------
------------
------------
------------
Recognised in other operating income:
Government grants recognised directly in income
33,212
136,433
33,212
136,433
------------
------------
------------
------------
24. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
'A' ordinary shares shares of £ 1 each
2,550
2,550
2,550
2,550
'B' ordinary shares shares of £ 1 each
2,450
2,450
2,450
2,450
'C' ordinary shares shares of £ 1 each
318
318
318
318
------------
------------
------------
------------
5,318
5,318
5,318
5,318
------------
------------
------------
------------
All rights attaching to the 'A' ordinary shares and 'B' ordinary shares including without limitation, rights of voting, participation in profits and participation in the return or distribution of capital whether following a winding up or otherwise are ranked pari passu according to the number of shares held by each shareholder as if all the shares constituted one class of share. The 'C' ordinary shares generally rank pari passu with the existing 'A' and 'B' shares but do not confer the right to receive notice of or to be present or to vote at any general meeting of the company.
25. Reserves
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs . 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
1,840,488
(1,125,445)
715,043
------------
------------
------------
27. Capital commitments
Capital expenditure contracted for but not provided for in the financial statements is as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Tangible assets
14,869
------------
------------
------------
------------
28. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Not later than 1 year
563,357
11,693
286,693
286,693
Later than 1 year and not later than 5 years
1,223,985
694,590
118,716
405,410
Later than 5 years
825,000
1,100,000
------------
------------
------------
------------
2,612,342
1,782,897
405,409
692,103
------------
------------
------------
------------
29. Contingencies
The company has indemnified its bankers in respect of a VAT deferment guarantee and related matters. The bank has a charge over the company's assets in support of this facility.
30. Related party transactions
Group
During the year the group paid rent of £275,000 (2022: £245,000) to Domus Property Developments Limited. This company is controlled by associates of certain of the directors.
WOOLTEX UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 DECEMBER 2023
30. Related party transactions (continued)
Company
The company is the parent company of Wooltex Spinning Company Limited. All of the directors of this company act as common directors of Wooltex Uk Limited. During the year the company made sales to Wooltex Spinning Company Limited of £499,965 (2022: £173,620) and purchases from Wooltex Spinning Company Limited of £8,886,277 (2022: £2,608,256) on normal commercial terms. At the period end the company was owed £nil (2022: £14,386) by Wooltex Spinning Company Limited and owed £644,314 (2022: £535,911) to Wooltex Spinning Company Limited. There was also an intercompany loan account of £5,025,270 (2022: £6,813,444) owed to the company by Wooltex Spinning Company Limited. During the year the company paid rent of £277,821 (2022: £277,821) to the Layton Property Partnership. This partnership is controlled by certain of the directors . Kvadrat A/S , a director of the company received dividends of £1,000,163 (2022: £2,303,498) from the company during the year. At the balance sheet date normal trade balances existed between the two companies. The substantial majority of the company's turnover is made to Kvadrat A/S as it was in 2021. These sales are made on normal commercial terms.
31. Ultimate controlling party
The company is controlled by Mr P Timmins and Mrs P Timmins.