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COMPANY REGISTRATION NUMBER: 00159202
Abbey Glen Limited
Financial Statements
31 December 2023
Abbey Glen Limited
Financial Statements
Year ended 31 December 2023
Contents
Pages
Officers and professional advisers
1
Strategic report
2 to 4
Directors' report
5 to 6
Independent auditor's report to the members
7 to 10
Statement of income and retained earnings
11
Statement of financial position
12
Statement of cash flows
13
Notes to the financial statements
14 to 21
Abbey Glen Limited
Officers and Professional Advisers
The board of directors
Mr T Y Sempers
Mr D V Horsfield FCCA
Mrs T E Sempers B.Ed (Hons)
Mr P Hogan
Mr B J West
Mrs S E Marsh
Mr T D Y Sempers
Company secretary
D V Horsfield FCCA
Registered office
Youle House
Carley Drive
Westfield
Sheffield
S20 8NQ
Auditor
Hebblethwaites
Chartered Accountants & Statutory Auditors
2 Westbrook Court
Sharrow Vale Road
Sheffield
S11 8YZ
Abbey Glen Limited
Strategic Report
Year ended 31 December 2023
The principal activity of the company is the laundering trade, primarily linen rental, and also garment rental and wash room services. Fair review of the business Key Financial Highlights 2023 2022 2021 2020 Turnover (Decrease)/Growth 17.7% 54.7% 17.2% (51.5%) Gross Margin 48.5% 44.2% 28.1% 14.4% Despite the global and macro-economic issues of recent years, the company has performed remarkably well and has now fully emerged from, in particular, the effects of the COVID-19 pandemic. Revenue for the latest year has improved by some 17.7% to a new record level for the company and reflects the significant investment made by "Abbey Glen" in recent years in new premises and equipment to establish a more efficient and leaner operation. This investment, which was challenging given the economic climate at the time, is now maturing if with built in capacity to effectively and efficiently expand further into the future whilst providing the confidence to expand the customer base and market and exploit the resultant economies of scale. Indeed, the market conditions have created a more rapid investment pay back period given, in particular, the unexpected and exceptional increases in utility and labour costs. The enhanced facilities also reflect in the much improved gross percentage margin return on revenue, which, alongside the uplift in sales, has combined to generate the best ever pre tax profit recorded in the history of the company. With an underlying policy of profit retention to fund further investment and debt repayment, the closing Statement of Financial Position is at its' strongest ever level at over £6 million and with a consistently positive cash flow resulting.
Principal risks and uncertainties The company's principal financial instruments and working capital components comprise bank balances, bank overdrafts (when needed and appropriate), trade debtors, trade creditors, loans to the company and finance lease and similar asset finance agreements. The main purpose of the instruments is to raise funds for the company's operations and expansion and to provide ongoing working capital. Due to the nature of the financial instruments used by the company, there is no perceived significant exposure to price risk, albeit this will always be a factor. The company's approach to managing other risks applicable to the financial instruments concerned is as set out 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 bank loans and overdrafts, again where needed and appropriate, and finance at fixed or floating rates of interest. In respect of loans, these comprise loans from financial institutions. The interest rate on the loans are variable and the company manages the liquidity risk by ensuring there are sufficient funds to meet the repayments as they fall due. The current volatility in terms of open market interest rates is monitored closely in the context of its' impact on the company finance arrangements but remains controllable with the hope of future interest rate reductions to increase the fiscal capacity of the company. The company uses finance leases to assist in the purchase of some fixed assets. The liquidity risk is managed in the same manner as for the loans as above. Trade debtors are managed in terms of credit and cash flow risk, by regularly reviewing credit terms given to customers and strict controls over the collection procedure. Trade creditor liquidity risk is managed in the same way as loans above, and is constantly monitored.
Key financial highlights Key performance indicators are as presented in the fair review of the business as set out above. Future developments Without disregarding the possibility of a future pandemic or similar macro event, the market does now appear to have largely recovered from its' relatively short term effects, if with longer term consequences in terms of statutory taxation policies which will impact on the company. The move to more efficient premises with greater automation is already enhancing profitability despite the fiscal outflow necessary to create this platform, and with financial forecasts reflecting increased benefit arising from economies of scale as revenue returns to a pattern of growth. The directors are confident of continuing revenue growth with enhanced profit margins giving rise to improved financial returns, thus creating greater resilience to safeguard against any future global or, indeed, local, issues outside the control of the company. The view is that the investment in fixed assets and sales systems provides a competitive advantage over other entities in the market-place. Further, in a climate of high inflation, this competitive advantage is seen as essential to maintain and enhance the company's market share.
This report was approved by the board of directors on 30 April 2024 and signed on behalf of the board by:
Mr T Y Sempers
Director
Registered office:
Youle House
Carley Drive
Westfield
Sheffield
S20 8NQ
Abbey Glen Limited
Directors' Report
Year ended 31 December 2023
The directors present their report and the financial statements of the company for the year ended 31 December 2023 .
Directors
The directors who served the company during the year were as follows:
Mr T Y Sempers
Mr D V Horsfield FCCA
Mrs T E Sempers B.Ed (Hons)
Mr P Hogan
Mr B J West
Mrs S E Marsh
Mr T D Y Sempers
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Disclosure of information in the strategic report
The Strategic Report is set out on pages 2 and 3.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 30 April 2024 and signed on behalf of the board by:
Mr T Y Sempers
Director
Registered office:
Youle House
Carley Drive
Westfield
Sheffield
S20 8NQ
Abbey Glen Limited
Independent Auditor's Report to the Members of Abbey Glen Limited
Year ended 31 December 2023
Opinion
We have audited the financial statements of Abbey Glen Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: - the nature of the industry and sector, control environment and business performance, including the identification of related party transactions, and matters which could potentially impact on the company's continuation as a going concern; - results of our enquiries of management and assessment of the risks of irregularities; - any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to: - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; - the matters discussed among the audit engagement team, including how and where fraud might occur in the financial statements and any potential indicators of fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK Corporate Governance Code and local tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Andrew Throssell FCA
(Senior Statutory Auditor)
For and on behalf of
Hebblethwaites
Chartered Accountants & Statutory Auditors
2 Westbrook Court
Sharrow Vale Road
Sheffield
S11 8YZ
1 May 2024
Abbey Glen Limited
Statement of Income and Retained Earnings
Year ended 31 December 2023
2023
2022
Note
£
£
Turnover
4
9,417,107
7,998,668
Cost of sales
( 4,849,956)
( 4,462,811)
------------
------------
Gross profit
4,567,151
3,535,857
Distribution costs
( 1,084,565)
( 1,075,378)
Administrative expenses
( 2,162,521)
( 1,839,108)
------------
------------
Operating profit
5
1,320,065
621,371
Interest receivable
9
282
Interest payable
10
( 209,074)
( 111,785)
------------
------------
Profit before taxation
1,110,991
509,868
Taxation on ordinary activities
11
( 265,526)
( 267,883)
------------
---------
Profit for the financial year and total comprehensive income
845,465
241,985
------------
---------
Dividends paid and payable
12
( 10,696)
( 10,696)
Retained earnings at the start of the year
5,144,101
4,912,812
------------
------------
Retained earnings at the end of the year
5,978,870
5,144,101
------------
------------
All the activities of the company are from continuing operations.
Abbey Glen Limited
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
13
7,951,067
8,179,016
Current assets
Debtors
14
2,014,271
1,753,140
Cash at bank and in hand
1,047,555
822,791
------------
------------
3,061,826
2,575,931
Creditors: amounts falling due within one year
15
1,966,480
3,144,638
------------
------------
Net current assets/(liabilities)
1,095,346
( 568,707)
------------
------------
Total assets less current liabilities
9,046,413
7,610,309
Creditors: amounts falling due after more than one year
16
2,263,428
1,658,378
Provisions
Taxation including deferred tax
18
744,115
747,830
------------
------------
Net assets
6,038,870
5,204,101
------------
------------
Capital and reserves
Called up share capital
21
50,000
50,000
Share premium account
22
10,000
10,000
Profit and loss account
22
5,978,870
5,144,101
------------
------------
Shareholders funds
6,038,870
5,204,101
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 30 April 2024 , and are signed on behalf of the board by:
T Y Sempers
Director
Company registration number: 00159202
Abbey Glen Limited
Statement of Cash Flows
Year ended 31 December 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
845,465
241,985
Adjustments for:
Depreciation of tangible assets
1,667,160
1,653,468
Interest receivable
( 282)
Interest payable
209,074
111,785
Gains on disposal of tangible assets
( 33,568)
Taxation on ordinary activities
267,718
267,883
Accrued expenses
17,428
72,130
Changes in:
Trade and other debtors
( 261,131)
( 466,585)
Trade and other creditors
8,466
130,860
------------
------------
Cash generated from operations
2,754,180
1,977,676
Interest paid
( 209,074)
( 111,785)
Interest received
282
Tax received
169,002
------------
------------
Net cash from operating activities
2,545,106
2,035,175
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 1,339,666)
( 1,237,433)
Proceeds from sale of tangible assets
77,000
------------
------------
Net cash used in investing activities
( 1,339,666)
( 1,160,433)
------------
------------
Cash flows from financing activities
Proceeds from borrowings
1,350,000
Repayments of borrowings
( 1,752,422)
( 200,000)
Payments of finance lease liabilities
( 567,558)
( 623,414)
Dividends paid
( 10,696)
( 10,696)
------------
------------
Net cash used in financing activities
( 980,676)
( 834,110)
------------
------------
Net increase in cash and cash equivalents
224,764
40,632
Cash and cash equivalents at beginning of year
822,791
782,159
------------
---------
Cash and cash equivalents at end of year
1,047,555
822,791
------------
---------
Abbey Glen 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. The address of the registered office is Youle House, Carley Drive, Westfield, Sheffield, S20 8NQ.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. 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. In the opinion of management, there are no areas of judgement or key sources of estimation uncertainty that have a significant effect on the financial statements, other than those highlighted below.
Revenue recognition
The turnover shown in the statement of income and retained earnings represents laundering, linen rental, garment rental and wash room services invoiced during the year exclusive of Value Added Tax. Income is recognised at the point of service.
Deferred tax
Deferred taxation is provided for in full in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, (or less), tax in future periods at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets, if carried at revalued amounts (should there be any such revaluations) 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:
Freehold Property
-
1.5% straight line
Plant & Machinery
-
10% Straight line
Fixtures & Fittings
-
15%-25% Straight line
Motor Vehicles
-
20%-25% Straight line
Rental Linen & Workwear
-
33%-50% Straight line
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.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
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 statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Turnover
Turnover arises from:
2023
2022
£
£
Services of laundering, linen rental, garment rental and wash room services
9,417,107
7,998,668
------------
------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
951,272
986,811
Impairment of tangible assets recognised in:
Cost of sales
715,888
666,657
Gains on disposal of tangible assets
( 33,568)
Impairment of trade debtors
779
4,906
---------
---------
6. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
8,750
8,500
-------
-------
7. Particulars of employees
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Production staff
81
82
Administrative staff
56
56
----
----
137
138
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
3,495,193
3,126,702
Social security costs
295,883
252,186
Other pension costs
238,184
155,559
------------
------------
4,029,260
3,534,447
------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
571,328
381,150
Company contributions to defined contribution pension plans
132,619
71,204
---------
---------
703,947
452,354
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2023
2022
No.
No.
Defined contribution plans
7
7
----
----
Remuneration of the highest paid director in respect of qualifying services:
2023
2022
£
£
Aggregate remuneration
143,500
87,425
Company contributions to defined contribution pension plans
8,933
---------
--------
143,500
96,358
---------
--------
9. Interest receivable
2023
2022
£
£
Other interest receivable and similar income
282
----
----
10. Interest payable
2023
2022
£
£
Interest on banks loans and overdrafts
105,295
36,080
Interest on obligations under finance leases and hire purchase contracts
103,779
75,705
---------
---------
209,074
111,785
---------
---------
11. Taxation on ordinary activities
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
269,241
Deferred tax:
Origination and reversal of timing differences
( 3,715)
267,883
---------
---------
Taxation on ordinary activities
265,526
267,883
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: higher than) the standard rate of corporation tax in the UK of 23.50 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
1,110,991
509,868
------------
---------
Profit on ordinary activities by rate of tax
261,305
96,875
Effect of expenses not deductible for tax purposes
4,221
1,190
Effect of capital allowances and depreciation
( 9,661)
Effect of the change in rate in relation to deferred tax
179,479
------------
---------
Tax on profit
265,526
267,883
------------
---------
12. Dividends
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
10,696
10,696
--------
--------
13. Tangible assets
Land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Pool rental linen
Total
£
£
£
£
£
£
Cost
At 1 Jan 2023
1,832,996
7,557,159
91,861
931,666
1,754,273
12,167,955
Additions
254,224
4,496
151,525
1,028,966
1,439,211
Disposals
( 564,365)
( 564,365)
------------
------------
--------
------------
------------
-------------
At 31 Dec 2023
1,832,996
7,811,383
96,357
1,083,191
2,218,874
13,042,801
------------
------------
--------
------------
------------
-------------
Depreciation
At 1 Jan 2023
65,434
2,471,755
53,524
616,035
782,191
3,988,939
Charge for the year
27,495
761,184
16,296
146,297
715,888
1,667,160
Disposals
( 564,365)
( 564,365)
------------
------------
--------
------------
------------
-------------
At 31 Dec 2023
92,929
3,232,939
69,820
762,332
933,714
5,091,734
------------
------------
--------
------------
------------
-------------
Carrying amount
At 31 Dec 2023
1,740,067
4,578,444
26,537
320,859
1,285,160
7,951,067
------------
------------
--------
------------
------------
-------------
At 31 Dec 2022
1,767,562
5,085,404
38,337
315,631
972,082
8,179,016
------------
------------
--------
------------
------------
-------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant and machinery
Motor vehicles
Total
£
£
£
At 31 December 2023
1,634,866
245,654
1,880,520
------------
---------
------------
At 31 December 2022
1,919,163
271,600
2,190,763
------------
---------
------------
14. Debtors
2023
2022
£
£
Trade debtors
1,774,869
1,544,719
Prepayments and accrued income
97,263
84,227
Directors loan account
99,324
80,075
Other debtors
42,815
44,119
------------
------------
2,014,271
1,753,140
------------
------------
15. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
191,292
200,000
Trade creditors
272,323
341,508
Accruals and deferred income
305,066
287,638
Corporation tax
274,202
2,769
Social security and other taxes
431,650
367,337
Obligations under finance leases and hire purchase contracts
450,116
658,943
Other loans
1,257,950
Other creditors
41,831
28,493
------------
------------
1,966,480
3,144,638
------------
------------
The bank borrowings are secured by a fixed and floating charge over the present and future assets of the company, to include all company land and buildings.
A partial guarantee has been provided, by the UK Government, to the bank under the Coronavirus Business Interruption Loan Scheme, however, the company remains liable for all sums payable under the loan agreement.
The bank borrowings bear interest at 2.15% above base rate.
The above obligations under finance leases and hire purchase contracts, and as detailed at note 17, are secured on the assets concerned.
16. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
1,464,236
600,000
Obligations under finance leases and hire purchase contracts
799,192
1,058,378
------------
------------
2,263,428
1,658,378
------------
------------
The bank borrowings are secured by a fixed and floating charge over the present and future assets of the company, to include all company land and buildings.
A partial guarantee has been provided, by the UK Government, to the bank under the Coronavirus Business Interruption Loan Scheme, however, the company remains liable for all sums payable under the loan agreement.
The bank borrowings bear interest at rates of 2.15% above base.
The above obligations under finance leases and hire purchase contracts, and as detailed at note 17, are secured on the assets concerned.
17. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2023
2022
£
£
Not later than 1 year
450,116
658,943
Later than 1 year and not later than 5 years
799,192
1,058,378
------------
------------
1,249,308
1,717,321
------------
------------
18. Provisions
Deferred tax (note 19)
£
At 1 January 2023
747,830
Additions
( 3,715)
---------
At 31 December 2023
744,115
---------
19. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 18)
744,115
747,830
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
744,115
747,830
---------
---------
20. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 105,565 (2022: £ 84,355 ).
21. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
50,000
50,000
50,000
50,000
--------
--------
--------
--------
22. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
23. Analysis of changes in net debt
At 1 Jan 2023
Cash flows
At 31 Dec 2023
£
£
£
Cash at bank and in hand
822,791
224,764
1,047,555
Debt due within one year
(858,943)
217,535
(641,408)
Debt due after one year
(1,658,378)
(605,050)
(2,263,428)
------------
---------
------------
( 1,694,530)
( 162,751)
( 1,857,281)
------------
---------
------------
24. Commitments under operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Later than 1 year and not later than 5 years
108,738
108,737
---------
---------
25. Directors' advances, credits and guarantees
Included in debtors at the balance sheet date are loans from the company to the directors as follows:- Balance at Balance at 1 January 2023 31 December 2023 Mr T Y Sempers £65,669 debtor £79,409 debtor Mr D V Horsfield £14,406 debtor £15,365 debtor Mrs T Sempers nil £4,550 debtor Mr T Y Sempers withdrew a total of £13,740 during the year. The loans are interest free and carry no formal terms of repayment. Dividends of £10,696 were distributed to the director/shareholders, in their capacity as shareholders, during the year (2022 £10,696).