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Registered number: 04654088









WREKIN HOLDINGS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
WREKIN HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Directors
S Turner 
P A Marshall 
D A Azoute 




Registered number
04654088



Registered office
Unit 1a Europa Way
Britannia Enterprise Park

Lichfield

Staffordshire

WS14 9TZ




Independent auditors
PKF Smith Cooper Audit Limited
Statutory Auditors

158 Edmund Street

Birmingham

B3 2HB





 
WREKIN HOLDINGS LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 4
Directors' Report
5 - 6
Independent Auditors' Report
7 - 11
Consolidated Statement of Comprehensive Income
12
Consolidated Statement of Financial Position
13
Company Statement of Financial Position
14
Consolidated Statement of Changes in Equity
15
Company Statement of Changes in Equity
16
Consolidated Statement of Cash Flows
17 - 18
Consolidated Analysis of Net Debt
19
Notes to the Financial Statements
20 - 37


 
WREKIN HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The principal activity of the group is the sale, distribution and fabrication of access covers and geotextiles.

Business review
 
The directors consider that the results for the year and the financial position at the end of the year were satisfactory.
Our review is consistent with the size and non complex nature of our business.
Trading performance is in line with expectations which took account of difficult economic conditions as the market emerges from the pandemic and challenges associated with Brexit .
Sales are £50,672,407 for the 12 months period to 31st December 2023, from £41,862,795 for the 9 month period to 31st December 2022 and our gross margin position remains satisfactory at £15,121,781 (31 December 2022: restated £10,542,069).
We consider that our key financial performance indicators are the operating performance and liquidity ratio.
The group operating profit for the 12 month period is £5,842,202 (the 9 month period prior was £3,761,950) and profit before tax and dividends for the 12 month period is £5,952,447 (from £3,564,968 of the 9 month period prior). The profit after tax and dividends of £4,743,424 for the 12 month period (from £3,049,134 for the 9 months prior) has been retained and added to reserves.
Liquidity ratio has increased to 2.81:1 (31 December 2022: 1.69:1). Liquidity ratio has been calculated by dividing liquid assets by current liabilities.
We have continued to invest in research and development to help continue the organic growth of the group.
With the forecast planning and changes that have been implemented we are confident that the business is wholly sustainable for the foreseeable future and well placed to deal with future challenges.
There will continue to be risks and uncertainties in the market and we are therefore aware that any plans for the future strategic development of the business may be subject to unforeseen future events outside of our control.

Page 1

 
WREKIN HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Risks and uncertainties
 
The group's activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the group's policies approved by the board of directors. 
The group's activities expose it primarily to the financial risks of changes in foreign exchange rates. The group uses foreign exchange forward contracts to hedge these exposures. Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.
The group's principal financial assets are trade and other receivables. The group's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. The group has no significant concentration of credit risk, with exposure spread over a large number of counterparts and customers. Credit insurance is taken out to minimise the bad debt of its trade receivables.
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the group uses a mixture of short term and long term debt finance.
The group is exposed to commodity price risk, but endeavours to manage this risk.
The business is well placed to face adverse trading conditions in terms of cash position, diverse customer base and dynamic and flexible management.

Other key performance indicators
 
In view of the nature of the business long term customer relationships are key to the business. All directors and managers spend time nurturing these relationships by attending social and work related events and through working together in partnership. This helps promote these relationships and ensure that there are strong foundations from which we can continue to build in the future.
The creation and retention of customer accounts, is carefully monitored to ensure that there is a foundation for growth and that the diverse customer base of the business is retained. Numerous new customer accounts continue to be created.
Staff development and retention is also key to be able to deliver the high level of customer service upon which the businesses customer relationships are built. Stability is also important as it creates the environment where long term relationships can be built. Directors and managers continually assess the training needs of staff to fulfil these aims. Furthermore, the business ensures that there is an intake of junior staff to build for the future. Where possible staff are promoted from within, and many key management positions are filled by people who started as trainees and have developed through the business.
Health and Safety risks are constantly reviewed by the directors. Details from regular health and safety meetings, and any accidents and near misses are reviewed carefully. The Group is ISO 45001 accredited and together with an internal HSQE manager the company also employ external consultants to help monitor and improve health and safety procedures.
Wrekin has also invested significant effort in developing and planning its Environmental Social Governance Report, which is available on our website. The targets set within will be delivered and reported upon annually, the Group produces an annual EPD report issued to the market and available on our website.

Page 2

 
WREKIN HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Directors' statement of compliance with duty to promote the success of the Group
 

The likely consequences of any decision in the long term
The board have a combined experience of over 125 years’ in the industry; the majority of which has been spent working for the Group. This understanding and experience combined with a strategy that focuses on long term stability and growth rather than short term gain ensures that all decisions focus on a positive long term benefit to the Group and its stakeholders.
The interests of the group's employees
The Group recognises that the success of the business depends on attracting, retaining, engaging and motivating employees. The Group policies are designed to ensure recruitment, promotion and opportunities for training, pay and benefits are not discriminatory, confirming the equal treatment of all individuals.
It is the policy of the Group to ensure no applicants or existing employees are discriminated due to disabilities and that equal opportunities are given in regard to employment, training and career path development.
In the event of an employee of the Group becoming disabled, every practical effort is made to ensure that their employment with the Group continues, and that appropriate training is arranged as needed.
The need to foster the group's business relationships with suppliers, customers and others
Customer engagement is fostered to gather and feedback customer's views to management, in order to guide product decisions and service offering to improve end user value and service. Senior management invest significant time in building and enhancing strong relationships with customers and this ethos is at the heart of the business.
Fostering strong relationships with our suppliers is a priority of the Group, as it has allowed us to adapt to customers' needs through the uncertainty created in the current trading environment, ensuring value can be added to our customer experience where possible. This is done through regular contact with key suppliers and supplier conferences.
Employees
The Group consults with employees, through appropriate channels including an annual employee survey, with respect to matters likely to affect their interests. The Directors engage in regular communication with department managers to ensure that information can be shared with staff and that there is an opportunity for staff to provide feedback. Furthermore, the Directors operate an open door policy and foster a culture of transparency and openness to encourage all members of staff to engage with them. The Directors are committed to furthering the development of communication procedures with employees, the business has appointed external consultants and for 2024 will begin enrolling into a well established workplace accreditation scheme.
Local Communities
The Group recognises its roll and responsibilities toward local communities. Encouragement is given to support local communities through engagement, such as by sponsoring organisations and sports teams or donating to charitable organisations.
The Group actively supports a number of local charities; it makes significant regular donations to air ambulance, SADS, Lighthouse, Pancreatic Cancer Research Fund, Macmillan Cancer Support and many more charity contributions throughout the year. 

 
Page 3

 
WREKIN HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

The impact of the group's operations on the community and the environment
The Group recognises the importance of its environmental responsibilities and has prioritised reducing its carbon footprint through various initiatives such as:

Replacing its car fleet with Hybrid and fully electric cars;
Review of electric and hybrid car schemes to allow employees the opportunity to upgrade;
Upgrading existing lighting at sites to low energy LED fixtures;   
Investigation underway for the installation of solar panel energy generation;
Forklift trucks are upgraded to fully electric;
Lichfield waste is non-landfill;
Product EPD reports to be published in 2024.

The desirability of the group maintaining a reputation for high standards of business conduct
The Group aims to maintain a reputation for high standards of business conduct, maintaining good relationships with customers and suppliers. The board is updated and monitors compliance with relevant government standards and health and safety legislation. The group has also issued group values and behaviours documents as part of the evolution of our group manual, to help guide staff conduct.
The need to act fairly as between members of the group
When forming and reviewing long term strategy, the Directors consider the impact on relevant stakeholders.


This report was approved by the board on 29 May 2024 and signed on its behalf.



S Turner
Director

Page 4

 
WREKIN HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, was £4,743,424 (9 months ended 31 December 2022 - £3,049,134).

Directors

The directors who served during the year were:

S Turner 
P A Marshall 
D A Azoute 

Research and development activities

Details of the Group's research and development activities are contained within the Strategic Report.

Engagement with suppliers, customers and others

Details on the Group's engagement with suppliers, customers and others are included in the Strategic Report. 

Page 5

 
WREKIN HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Greenhouse gas emissions, energy consumption and energy efficiency action

This section includes our mandatory reporting of energy and greenhouse gas emissions for the year 1 January 2023 to 31 December 2023, pursuant to the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, implementing the government's Streamlined Energy and Carbon Reporting (SECR) policy.

Our methodology to calculate our greenhouse gas emissions is based on the Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance (March 2019) issued by DEFRA, using DEFRA's 2020 and 2021 conversion factors as appropriate. In some cases, consumption has been extrapolated from available data or direct comparison made to a comparable period.

We report using a financial control approach to define our organisational boundary. We have reported all material emission sources required by the regulations for which we deem ourselves to be responsible and have maintained records of all source data and calculations.
The table below includes total energy consumption (reported as kWh) and greenhouse gas emissions for the sources required by the regulations, along with our intensity ratios.
 Reporting period                                                                                    01/01/2022 -               01/04/2022 -
                                                                                                                31/12/2023                 31/12/2022 
Total Energy Consumption Used for Emissions Calculation (kWh)           221,711                      219,829 
Gas Combustion Emissions, Scope 1 (tC02e)                                             16.80                          13.70  
Purchased Electricity Emissions, Scope 2 (tC02e)                                       30.40                         33.90 
Vehicle Fuel Combustion Emissions, Scope 1 (tC02e)                                51.06                          41.02 
  
Total Gross Reported Emissions (tC02e)                                                     98.26                          88.76  
  
Intensity Ratio: per person employed (tC02e / employee)                            1.346                         1.184

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Auditors

The auditorsPKF Smith Cooper Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 29 May 2024 and signed on its behalf.
 





S Turner
Director

Page 6

 
WREKIN HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WREKIN HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of Wrekin Holdings Limited (the 'parent Company') and its subsidiary (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the 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; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Page 7

 
WREKIN HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WREKIN HOLDINGS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Group 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 Group 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 Group 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.


Page 8

 
WREKIN HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WREKIN HOLDINGS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 5, 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.


Page 9

 
WREKIN HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WREKIN HOLDINGS LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 Group 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.
Based on our understanding of the Group and industry, we identified the key laws and regulations affecting the Group are:

Companies Act 2006;
Tax legislation; and
Health and safety and employment legislation.

We identified that the principal risk of fraud or non-compliance with laws and regulations related to:

management bias in respect of accounting estimates and judgements made;
management override of control;
posting of unusual journals or transactions.

We focussed on those areas that could give rise to a material misstatement in the Group financial statements.

Our procedures included, but were not limited to:

Enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;
Reviewing minutes of meetings of those charged with governance where available;
Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations and;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias, in particular depreciation of tangible fixed assets and provision of slow moving stock items.

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.


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
Page 10

 
WREKIN HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WREKIN HOLDINGS LIMITED (CONTINUED)


intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 2006Our 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 Auditors' 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.





Stephen Newman (Senior Statutory Auditor)
  
for and on behalf of
PKF Smith Cooper Audit Limited
 
Statutory Auditors
  
158 Edmund Street
Birmingham
B3 2HB

5 June 2024
Page 11

 
WREKIN HOLDINGS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

As restated
12 months ended 31 December 2023
9 months ended 31 December 2022
Note
£
£

  

Turnover
 4 
50,672,407
41,862,795

Cost of sales
  
(35,550,626)
(31,320,726)

Gross profit
  
15,121,781
10,542,069

Distribution costs
  
(1,921,575)
(1,484,584)

Administrative expenses
  
(7,358,004)
(5,295,535)

Operating profit
 5 
5,842,202
3,761,950

Interest receivable and similar income
 8 
278,645
21

Interest payable and similar expenses
 9 
(87,623)
(36,810)

Other finance expense
  
(80,777)
(160,193)

Profit before taxation
  
5,952,447
3,564,968

Tax on profit
 11 
(1,209,023)
(515,834)

Profit for the financial year
  
4,743,424
3,049,134

  

There was no other comprehensive income for 2023 (9 months ended 31 December 2022:£NIL).

The notes on pages 20 to 37 form part of these financial statements.

Page 12

 
WREKIN HOLDINGS LIMITED
REGISTERED NUMBER: 04654088

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
791,337
763,498

Current assets
  

Stocks
 15 
6,650,442
8,854,771

Debtors: amounts falling due within one year
 16 
12,418,129
8,054,955

Cash at bank and in hand
 17 
6,281,965
4,699,676

  
25,350,536
21,609,402

Creditors: amounts falling due within one year
 18 
(6,658,345)
(7,556,028)

Net current assets
  
 
 
18,692,191
 
 
14,053,374

Total assets less current liabilities
  
19,483,528
14,816,872

Creditors: amounts falling due after more than one year
 19 
(41,525)
(118,293)

Provisions for liabilities
  

Deferred taxation
 22 
(74,530)
(74,530)

Net assets
  
19,367,473
14,624,049


Capital and reserves
  

Called up share capital 
 23 
50,000
50,000

Profit and loss account
 24 
19,317,473
14,574,049

  
19,367,473
14,624,049


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 May 2024.




S Turner
Director

The notes on pages 20 to 37 form part of these financial statements.

Page 13

 
WREKIN HOLDINGS LIMITED
REGISTERED NUMBER: 04654088

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 14 
2,745,000
2,745,000

Current assets
  

Debtors: amounts falling due within one year
 16 
3,174,725
3,000,000

Cash at bank and in hand
 17 
42,937
3,876

  
3,217,662
3,003,876

Creditors: amounts falling due within one year
 18 
(657,958)
(3,369,956)

Net current assets/(liabilities)
  
 
 
2,559,704
 
 
(366,080)

Total assets less current liabilities
  
5,304,704
2,378,920

  

  

Net assets
  
5,304,704
2,378,920


Capital and reserves
  

Called up share capital 
 23 
50,000
50,000

Profit and loss account brought forward
  
2,328,920
2,104,772

Profit for the year

  

2,925,784
224,148

Profit and loss account carried forward
  
5,254,704
2,328,920

  
5,304,704
2,378,920


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 May 2024.


S Turner
Director

The notes on pages 20 to 37 form part of these financial statements.

Page 14

 
WREKIN HOLDINGS LIMITED
 

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


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity

£
£
£
£
£


At 1 April 2022
50,000
11,192,744
11,242,744
2,432,171
13,674,915



Profit for the period
-
3,049,134
3,049,134
-
3,049,134

Increase of controlling interest
-
(2,100,000)
(2,100,000)
-
(2,100,000)

Transfer
-
2,432,171
2,432,171
(2,432,171)
-



At 1 January 2023
50,000
14,574,049
14,624,049
-
14,624,049



Profit for the year
-
4,743,424
4,743,424
-
4,743,424


At 31 December 2023
50,000
19,317,473
19,367,473
-
19,367,473


The notes on pages 20 to 37 form part of these financial statements.

Page 15

 
WREKIN HOLDINGS LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2022
50,000
2,104,772
2,154,772



Profit for the period
-
224,148
224,148



At 1 January 2023
50,000
2,328,920
2,378,920



Profit for the year
-
2,925,784
2,925,784


At 31 December 2023
50,000
5,254,704
5,304,704


The notes on pages 20 to 37 form part of these financial statements.

Page 16

 
WREKIN HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

12 months ended 31 December 2023
9 months ended 31 December 2022
£
£

Cash flows from operating activities

Profit for the financial year
4,743,424
3,049,134

Adjustments for:

Depreciation of tangible assets
344,069
262,170

(Profit)/loss on disposal of tangible assets
(21,317)
166,009

Interest paid
87,623
36,810

Interest received
(278,645)
(21)

Taxation charge
1,209,023
515,834

Decrease/(increase) in stocks
2,204,329
(1,472,853)

Decrease in debtors
1,469,549
3,892,365

(Increase) in amounts owed by groups
(5,780,277)
-

(Increase) in amounts owed by related party undertakings
(52,446)
-

(Decrease) in creditors
(881,519)
(1,843,978)

Corporation tax (paid)
(1,190,223)
(909,605)

Net cash generated from operating activities

1,853,590
3,695,865


Cash flows from investing activities

Purchase of tangible fixed assets
(371,908)
(144,827)

Sale of tangible fixed assets
21,317
496

Interest received
278,645
21

HP interest paid
(10,393)
(10,220)

Increase in controlling interest
-
(2,100,000)

Net cash from investing activities

(82,339)
(2,254,530)

Cash flows from financing activities

Repayment of finance leases
(111,732)
(108,184)

Interest paid
(77,230)
(26,590)

Net cash used in financing activities
(188,962)
(134,774)
Page 17

 
WREKIN HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Net increase in cash and cash equivalents
1,582,289
1,306,561

Cash and cash equivalents at beginning of year
4,699,676
3,393,115

Cash and cash equivalents at the end of year
6,281,965
4,699,676


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
6,281,965
4,699,676

6,281,965
4,699,676


The notes on pages 20 to 37 form part of these financial statements.

Page 18

 
WREKIN HOLDINGS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

4,699,676

1,582,289

6,281,965

Finance leases and HP contracts

(229,127)

111,732

(117,395)


4,470,549
1,694,021
6,164,570

The notes on pages 20 to 37 form part of these financial statements.

Page 19

 
WREKIN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Wrekin Holdings Limited ("the Company") is a private limited company, limited by shares and incorporated in England. The address of the Company's registered office and principal place of business is Unit 1a Europa Way, Britannia Enterprise Park, Lichfield, Staffordshire, WS14 9TZ. The Company (and the Group's) principal activities are set out in the Strategic report on page 1. The company's registration number is 04654088.
The financial statements are prepared in sterling which is the functional currency of the group. The financial statements level of rounding is to the nearest £1.
The reporting period covered by the financial statements is the 12 months ended 31 December 2023 and therefore, the comparatives for the 9 months ended 31 December 2022 are not entirely comparable. The company shortened its year end previously to coincide with other group companies.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Consolidated Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The Group continues to be profitable and the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Page 20

 
WREKIN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.4

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. 
Turnover is recognised on despatch of goods to customer.

  
2.5

Research and development

Research and development expenditure is written off in the Consolidated Statement of Comprehensive Income in the period which it is incurred.

  
2.6

Goodwill

Goodwill is the difference between the cost of an acquired entity and the aggregate of the fair value of that entity's identifiable assets and liabilities. Positive goodwill is capitalised, classified as an asset on the Consolidated Statement of Financial Position and amortised on a straight line basis over its useful economic life which is estimated to be five years. The period of amortisation represents the period over which the goodwill is expected to give rise to economic benefits.

  
2.7

Intangible fixed assets

Patents acquired by the group are initially measured at cost and subsequently measured at cost less amortisation and any impairment losses. Amortisation is provided to write down patents over a period of five years.
In the opinion of the directors the amortisation basis represents the period over which the intangible assets are expected to give rise to economic benefits.
Amortisation is charged to administrative expenses.

 
2.8

Foreign currency translation

Transactions in currencies other than the functional currency (foreign currencies) are initially recorded at a fixed exchange rate.
Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are retranslated at the rate ruling at the date of the transaction or, if the asset or liability is measured at fair value, the rate when that fair value was determined.
All translation differences are taken to the Consolidated Statement of Comprehensive Income, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income.

 
2.9

Interest income

Interest income is recognised in the Consolidated Statement of Comprehensive Income using the effective interest method.

Page 21

 
WREKIN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Finance costs

Finance costs are charged to the Consolidated Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.11

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in the Consolidated Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Consolidated  Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in consolidated statement of comprehensive income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 22

 
WREKIN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Property improvements
-
over the term of the lease
Plant and machinery
-
25% / 33% straight line basis
Motor vehicles
-
25% straight line basis

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated Statement of Comprehensive Income.

 
2.14

Fixed asset investments - Company

In the separate accounts of the Company, interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

 
2.15

Stocks

Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each reporting date, the Group assesses whether stocks are impaired or if an impairment loss recognised in prior periods has reversed. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell, is recognised as an impairment loss in the Consolidated Statement of Comprehensive Income. Reversals of impairment losses are also recognised in the Consolidated Statement of Comprehensive Income.

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

Page 23

 
WREKIN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.17

Hire purchase agreements

An asset and corresponding liability are recognised for leasing agreements that transfer to the Group substantially all of the risks and rewards incidental to ownership ("finance leases"). The amount capitalised is the fair value of the leased asset or, if lower, the present value of the minimum lease payments payable during the lease term, both determined at inception of the lease. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the Consolidated Statement of Comprehensive Income so as to produce a constant periodic rate of interest on the remaining balance of the liability.

  
2.18

Operating lease agreements

Rentals payable under operating leases are charged to the Consolidated Statement of Comprehensive Income on a straight line basis over the lease term.

 
2.19

Financial instruments

The Group has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102, in full, to all of its financial instruments.
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instruments, and are offset only when the Group currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Page 24

 
WREKIN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.20

Financial assets

Trade, group and other debtors
Trade, group and other debtors (including accrued income) which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.
Where the arrangement with a debtor constitutes a financing transaction, the debtor is initially measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument and subsequently measured at amortised cost.
A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in the Consolidated Statement of Comprehensive Income for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in the Consolidated Statement of Comprehensive Income.
Financial liabilities and equity
Financial instruments are classified as liabilities and equity instruments 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 Group after deducting all of its liabilities.
Equity instruments
Financial instruments classified as equity instruments are recorded at the fair value of the cash or other resources received or receivable, net of direct costs of issuing the equity instruments.
Trade, group and other creditors
Trade, group and other creditors (including accruals) payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being transaction price less any amounts settled. 
Where the arrangement with a creditor constitutes a financing transaction, the creditor is initially measured at the present value of future payments discounted at a market rate of interest for a similar instrument and subsequently measured at amortised cost.

Derecognition of financial assets and liabilities
A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks are rewards of ownership are transferred to another party, 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. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

Page 25

 
WREKIN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Stock Provision
Stock is stated net of provisions for slow moving and obsolete stock, the calculation of which includes judgements. The directors review these periodically to ensure slow moving and obsolete stock is identified and provisions are appropriately calculated.
Estimation of useful life
The charge in respect of periodic depreciation and amortisation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful lives of all assets are determined at the time the asset is acquired and reviewed at least annually for appropriateness by the directors.


4.


Turnover

The turnover and profit before tax are attributable to the one principal activity of the group.

Analysis of turnover by country of destination:

12 months ended 31 December 2023
9 months ended 31 December 2022
£
£

United Kingdom
46,107,550
37,882,723

Rest of Europe
4,564,857
2,981,538

Rest of the world
-
998,534

50,672,407
41,862,795


Page 26

 
WREKIN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Operating profit

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

12 months ended 31 December 2023
9 months ended 31 December 2022
£
£

Depreciation of owned fixed assets
223,921
155,775

Depreciation of assets held under hire purchase agreements
120,148
106,395

Auditors remuneration
24,000
24,000

(Profit)/loss on disposal of fixed assets
(21,317)
166,009

Other operating lease rentals
220,000
128,333

Stock - impairment loss movement recognised in cost of sales
(189,144)
296,311

Non recurring costs
127,273
114,500


6.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
12 months ended 31 December 2023
9 months ended 31 December 2022
£
£


Wages and salaries
3,621,316
2,399,267

Social security costs
337,887
273,546

Cost of defined contribution scheme
207,760
179,432

4,166,963
2,852,245


The average monthly number of employees, including the directors, during the year was as follows:


12 months ended 31 December 2023
9 months ended 31 December 2022
            No.
            No.







Management and administrative staff
73
75

Page 27

 
WREKIN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services for the period was £181,834 (9 months ended 31 December 2022 - £97,869).
The group contributions to defined contribution pension schemes in respect of directors' amounted to £nil (9 months ended 31 December 2022 - £12,000).
The number of directors on whose behalf the group made pension contributions in the period was - (9 months ended 31 December 2022 - 1).
Key management personnel
Total compensation including pension contributions payable to key management personnel of the group for the period was £746,001 (9 months ended 31 December 2022 - £399,052).






8.


Interest receivable

12 months ended 31 December 2023
9 months ended 31 December 2022
£
£


Other interest receivable on ultimate parent loan
278,645
21


9.


Interest payable and similar expenses

12 months ended 31 December 2023
9 months ended 31 December 2022
£
£


Bank interest payable
77,230
24,970

Other loan interest payable
-
1,620

Finance leases and hire purchase contracts
10,393
10,220

87,623
36,810

Page 28

 
WREKIN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Other finance expense

12 months ended 31 December 2023
9 months ended 31 December 2022
£
£
Difference on foreign exchange

80,777

160,193
 


11.


Taxation


12 months ended 31 December 2023
9 months ended 31 December 2022
£
£

Corporation tax


Current tax on profits for the period
1,209,023
515,834



Taxation on profit on ordinary activities
1,209,023
515,834

Factors affecting tax charge for the year/period

The tax assessed for the year/period is lower than (9 months ended 31 December 2022 - lower than) the standard rate of corporation tax in the UK of 23.50% (9 months ended 31 December 2022 - 19%). The differences are explained below:

12 months ended 31 December 2023
9 months ended 31 December 2022
£
£


Profit on ordinary activities before tax
5,952,447
3,564,968


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.50% (2022 - 19%)
1,398,825
677,344

Effects of:


Research and development
(38,920)
(50,000)

Patent box
-
(60,000)

Other differences leading to an increase (decrease) in the tax charge
(150,071)
-

Fixed asset differences
(811)
(51,510)

Total tax charge for the year/period
1,209,023
515,834

Page 29

 
WREKIN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors that may affect future tax charges

In the budget on 31 March 2021, the UK Government announced a proposal to increase the rate of corporation tax from 19% to 25%, which will increase the Group's tax rate from 1 April 2023. This rate was substantively enacted on 24 May 2021, and has led to the Group's deferred tax liabilities being calculated at the higher rate of 25%.


12.


Intangible assets

Group 





Intellectual Property
Goodwill
Total

£
£
£



Cost


At 1 January 2023
145,000
381,000
526,000



At 31 December 2023

145,000
381,000
526,000



Amortisation


At 1 January 2023
145,000
381,000
526,000



At 31 December 2023

145,000
381,000
526,000



Net book value



At 31 December 2023
-
-
-



At 31 December 2022
-
-
-



Page 30

 
WREKIN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Tangible fixed assets

Group






Property improve-ments
Plant and machinery
Motor vehicles
Total

£
£
£
£



Cost


At 1 January 2023
404,101
1,405,460
608,077
2,417,638


Additions
37,490
289,368
45,050
371,908


Disposals
-
(14,634)
(41,915)
(56,549)



At 31 December 2023

441,591
1,680,194
611,212
2,732,997



Depreciation


At 1 January 2023
260,544
1,144,544
249,052
1,654,140


Charge for the year
36,229
170,310
137,530
344,069


Disposals
-
(14,634)
(41,915)
(56,549)



At 31 December 2023

296,773
1,300,220
344,667
1,941,660



Net book value



At 31 December 2023
144,818
379,974
266,545
791,337



At 31 December 2022
143,557
260,916
359,025
763,498

Included within the net book value is £168,022 (2022: £288,170) relating to assets held under hire purchase agreements.

Page 31

 
WREKIN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost 


At 1 January 2023
2,745,000



At 31 December 2023
2,745,000





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Wrekin Products Limited
Unit 1a Europa Way, Britannia Enterprise Park, Lichfield, Staffordshire, WS14 9TZ.
Sale, distribution and fabrication of access covers and geotextiles
Ordinary
100%






15.


Stocks

Group
Group
2023
2022
£
£

Stock in transit
966,189
702,340

Finished goods and goods for resale
5,684,253
8,152,431

6,650,442
8,854,771


The carrying value of stocks are stated net of impairment losses totalling £756,552 (2022 - £945,695). Impairment losses occurred due to items of stock which are deemed to be slow moving or obsolete.
 

Page 32

 
WREKIN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
3,441,768
4,944,770
-
-

Amounts owed by group undertakings
8,780,277
3,000,000
3,174,725
3,000,000

Amounts owed by related party undertakings
52,446
-
-
-

Other debtors
5,000
-
-
-

Prepayments and accrued income
138,638
110,185
-
-

12,418,129
8,054,955
3,174,725
3,000,000


See note 31 for disclosure relating to amounts owed by group undertakings.


17.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
6,281,965
4,699,676
42,937
3,876



18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
4,436,423
5,230,023
43,610
113,391

Amounts owed to group undertakings
-
-
359,718
3,039,155

Corporation tax
513,057
494,257
124,995
90,000

Other taxation and social security
1,043,912
1,490,580
118,885
101,910

Obligations under finance lease and hire purchase contracts
75,870
110,834
-
-

Accruals and deferred income
589,083
230,334
10,750
25,500

6,658,345
7,556,028
657,958
3,369,956


Hire purchase agreements are secured against the asset to which they relate.

Page 33

 
WREKIN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Creditors: Amounts falling due after more than one year

Group
Group
2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
41,525
118,293


Hire purchase agreements are secured against the asset to which they relate.


20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within one year
75,870
110,834

Between 1-5 years
41,525
118,293

117,395
229,127

Hire purchase agreements are secured against the asset to which they relate.


21.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets that are debt instruments measured at amortised cost
12,279,491
7,944,770
3,174,725
3,000,000

Financial assets measured at transaction price through Consolidated statement of comprehensive income
6,281,965
4,699,676
42,937
3,876

18,561,456
12,644,446
3,217,662
3,003,876


Financial liabilities

Financial liabilities measured at amortised cost
(5,025,506)
(5,460,357)
(414,078)
(3,178,046)


 

Page 34

 
WREKIN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.Financial instruments (continued)


Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by group undertakings, amounts owed by related party undertakings and other debtors.


Financial assets measured at transaction price through Consolidated statement of comprehensive income comprise cash at bank and in hand.


Financial liabilities measured at amortised cost comprise trade creditors, amounts owed to group undertakings, other creditors and accruals and deferred income.


22.


Deferred taxation


Group



2023


£






At beginning of period
(74,530)



At end of period
(74,530)

Group
Group
2023
2022
£
£

Accelerated capital allowances
(74,530)
(74,530)

(74,530)
(74,530)

Page 35

 
WREKIN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



50,000 (2022 - 50,000) Ordinary shares of £1.00 each
50,000
50,000



24.


Reserves

Profit and loss account

This reserve records all current and prior period retained profits and losses.


25.


Contingent liabilities

The group has a Duty Deferment Guarantee in favour of HM Revenue & Customs for £20,000 (2022 - £200,000).


26.


Prior year adjustment

There has been a restatement to the financial statements for the comparative period ended 31 December 2022 to correct the presentation of carriage on sales. This adjustment has only had an impact on the presentation of the statement of comprehensive income. There has been no restatement to the net assets shown in the statement of financial position. The adjustment has resulted in cost of sales reducing by £1,484,584 and distribution costs increasing by £1,484,584.


27.


Capital commitments

The group had capital commitments of £99,750 (2022 - £13,267).





28.


Pension commitments

The contributions payable by the Group charged to the Statement of Comprehensive Income amounted to £207,760 (9 months ended 31 December 2022: £179,432). Contributions totalling £nil (2022: £nil) were payable to the fund at the year end.

Page 36

 
WREKIN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

29.


Commitments under operating leases

At 31 December 2023 the Group  had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
220,000
220,000

Later than 1 year and not later than 5 years
660,000
880,000

Later than 5 years
-
650,959

880,000
1,750,959

30.Forward contracts

At the year end, as part of its normal trading activities, the group had entered into an agreement for the forward purchasing of $3m (31 December 2022 - $nil).


31.


Related party transactions

The Company has taken advantage of the exemption in paragraph 33.1A of Financial Reporting Standard 102, from the requirement to disclose transactions with wholly owned members of the Group.
During the year the Group provided an informal loan of £nil (2022: £nil) to a company in which two of the directors of the Group are controlling shareholders. The Group also sold a property during the comparative period to this related party for £3,000,000. The balance outstanding to the Group 31 December 2023 was £5,000 (2022: £5,000). Subsequent to the property sale, the Group paid property rentals of £220,000 (9 months ended 31 December 2022: £128,333) to this related party and at the statement of financial position date owed the related party £66,000 (2022: £132,000).
During the year, the group made loans to the ultimate parent company. These loans are unsecured and attracting interest at 4.5%. At the statement of financial position date, the group was owed £8,780,277 (2022 - £3,000,000) from the ultimate parent company. The amounts owed will be paid by dividends from future profits.
Invoices received amounting to £30,000 (9 months ended 31 December 2022: £22,500) from a company in which a director is also director of the Group. The balance at 31 December 2023 was £40,000 (31 December 2022: £63,000) owed by the Group.


32.


Controlling party

The ultimate parent company is Pil Newco. Pil Newco is a private company, limited by shares and incorporated in France. The registered office is 26 Rue George Sand, 75016, Paris, France. The controlling party is David Azoute. 

 
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