Company registration number 03119544 (England and Wales)
CMW PROPERTY & MACHINERY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CMW PROPERTY & MACHINERY LIMITED
COMPANY INFORMATION
Directors
John Carney
Paul Carney
Philip Carney
Joanne Graham
Secretary
Joanne Graham
Company number
03119544
Registered office
Cheshire House
Unit 7 Normans Road
Sutton
St. Helens
Merseyside
United Kingdom
WA9 4JQ
Auditor
Azets
Ship Canal House
98 King Street
Manchester
M2 4WU
CMW PROPERTY & MACHINERY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 35
CMW PROPERTY & MACHINERY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

 

The principal activity of the group throughout the year continued to be the manufacture and sale of timber stair parts and mouldings.

Review of the business

Overall, the Directors are satisfied with the performance of the group in the period under review. The market continued to be challenging due to inflationary pressures in the wider UK economy, in particular labour, shipping and energy costs. As a result of these market conditions, the gross profit margin decreased by 1% despite the revenue increase of 9%. The Board continues to invest in updating product ranges, investing in production capability and investment in IT, to maintain its quality products and services. The balance sheet continued to strengthen during the year with significant capital expenditure and increasing reserves. The Directors remain confident that the business is well placed to continue to deliver unrivalled service levels to its customers.

 

Trading Performance

Trading performance and Key Performance Indicators may be summarised as follows:

            2023 (£’000)    2022 (£’000)

Turnover            37,860        34,668

Gross Profit        11,446        10,628

Gross Profit Margin 30% 31%

Operating Profit         4,577         4,709    

In addition to the Key Performance Indicators above, the Board also monitors a number of operational measures within its manufacturing facility, which are reported within the suite of comprehensive management information produced each month.

Principal risks and uncertainties

Whilst general trading in the year remained competitive in the face of rising inflation, the group’s core ranges of timber stair parts, mouldings and wall panels continue to be well received and the group continues to expand the customer/supplier base. This helps mitigate any exposure to a downturn in any one area. The Board of Directors continually reviews market conditions to assess both risks and opportunities that the group faces. Whilst at the same time as expanding the group's product range, the Board has also undertaken a review of the group's operations so as to optimise the use of working capital

 

The group trades with high profile customers who have strong credit ratings in the industry and as such the Directors do not believe that the group is exposed unduly to the risk of significant bad debts. Credit limits are set based on a combination of payment history and credit agency ratings and the group utilises a credit insurance policy to mitigate risk in this area. Similarly, stock ranges are restricted to, wherever possible, core ranges in the DIY retailers, as well as for the group's own ranges sold via multiple builder’s merchants to mitigate the risk of stock obsolescence.

 

The group is exposed to fluctuations in exchange rates, higher prices for raw material and higher freight costs on its imported goods and seeks to mitigate these or pass on such costs wherever possible.

 

The Board is mindful of its responsibilities in respect of Health and Safety Legislation and continues to invest in this area.

 

The group’s impact on the community, environment and continuing its sustainability work continues to remain important. The group ensures that corporate and social responsibility is a high priority. We will continue to monitor our performance in all these areas as we look to optimise performance.

CMW PROPERTY & MACHINERY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

On behalf of the board

John Carney
Director
16 July 2024
CMW PROPERTY & MACHINERY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the group continued to be that of the manufacture and sale of timber stair parts and mouldings.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £1,103,180. The directors do not recommend payment of a further dividend.

Directors

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

John Carney
Paul Carney
Philip Carney
Joanne Graham
Financial instruments

The group holds or issues financial instruments in order to achieve three main objectives, being:

 

(a) to finance its operations;

 

(b) to manage its exposure to interest and currency risks arising from its operations and from its sources of finance; and

 

(c) for trading purposes.

 

In addition, various financial instruments (e.g. trade debtors, trade creditors, accruals and prepayments) arise directly from the company's operations.

 

Transactions in financial instruments result in the company assuming or transferring to another party one or more of the financial risks described below:

Liquidity risk

 

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Foreign currency risk

 

The group’s principal foreign currency exposures arise from trading with overseas companies. The group policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling.

Credit risk

 

The group monitors credit risk closely and considers that its current policy of credit checks meets in objectives of managing exposure to credit risk.

CMW PROPERTY & MACHINERY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Auditor
In accordance with the group's articles, a resolution proposing that Azets Audit Services be reapponted as auditor of the compnay will be put at a General Meeting.
Energy and carbon report

CMW Property & Machinery Limited and it's subsidiary, Cheshire Mouldings & Woodturnings Limited, are committed to reducing their impact on climate change and the reduction of carbon emissions associated with its products and services. This is in line with customer requirements and the UK government Net Zero target of 2050. The requirements to monitor our Scope 1 and 2 emissions relevant to our business are well understood by the group, as is the need to reduce emissions going forward.

 

During the financial year January - December 2023, the group have monitored the carbon emissions associated with various aspects of its operations, limited to the UK. The table below shows energy comsumption, the Carbon Dioxide (equivalent) emissions in tonnes and indirect emissions.

 

 

2023

2022

Energy consumption

kWh

kWh

Aggregate of energy consumption in the year

 

 

- Gas combustion

17,382

N/A

- Fuel consumed for transport

217,184

N/A

  • Fuel Oil for production

1,303,226

N/A

- Electricity purchased

954,290

N/A

Total

2,492,082

N/A

 

 

2023

 

2022

Emissions of CO2 equivalent

metric tonnes

metric tonnes

Scope 1 - direct emissions

 

 

- Gas combustion

- Fuel Oil combustion

3.17

34.95

N/A

N/A

- Fuel consumed for owned transport

5.18

N/A

 

 

 

Scope 2 - indirect emissions

 

 

- Electricity purchased

197.61

N/A

Total gross emissions

240.91

N/A

Intensity ratio

 

 

Tonnes CO2e per £100,000 sales revenue

0.63

N/A

 

CMW PROPERTY & MACHINERY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

Quantification and reporting methodology

Associated greenhouse gas emissions have been calculated using rates derived from the UK Government Department for Energy Security and Net Zero GHG Conversion Factors For Company Reporting 2023 paper.

 

Intensity measurement

The intensity ratio is based on per £100,000 of sales revenue for the twelve month reporting period.

 

Measures taken to improve energy efficiency

The Company is reporting the CO2e data for the first time in 2023. However the Company is currently developing a Carbon Reduction Action Plan in line with Government requirements and guidelines. The collection of data for future reporting will be used to implement changes to reduce emissions where possible. Examples include:

Statement of directors' responsibilities

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

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

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

CMW PROPERTY & MACHINERY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
On behalf of the board
John Carney
Director
16 July 2024
CMW PROPERTY & MACHINERY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CMW PROPERTY & MACHINERY LIMITED
- 7 -
Opinion

We have audited the financial statements of CMW Property and Machinery Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

CMW PROPERTY & MACHINERY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CMW PROPERTY & MACHINERY LIMITED
- 8 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

CMW PROPERTY & MACHINERY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CMW PROPERTY & MACHINERY LIMITED
- 9 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we 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.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 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.

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.

Ashley Conway
Senior Statutory Auditor
For and on behalf of Azets Audit Services
16 July 2024
Chartered Accountants
Statutory Auditor
Ship Canal House
98 King Street
Manchester
M2 4WU
CMW PROPERTY & MACHINERY LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
37,859,784
34,667,662
Cost of sales
(26,413,864)
(24,039,292)
Gross profit
11,445,920
10,628,370
Administrative expenses
(7,120,421)
(6,176,969)
Other operating income
251,502
257,740
Operating profit
4
4,577,001
4,709,141
Interest receivable and similar income
84
-
0
Interest payable and similar expenses
8
(333,417)
(204,197)
Fair value gains and losses on investment properties
12
662,535
-
0
Profit before taxation
4,906,203
4,504,944
Tax on profit
9
(1,279,292)
(1,028,429)
Profit for the financial year
3,626,911
3,476,515
Profit for the financial year is all attributable to the owners of the parent company.
CMW PROPERTY & MACHINERY LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
12,210,760
12,938,371
Investment property
12
2,725,000
2,062,465
Investments
13
454,707
399,707
15,390,467
15,400,543
Current assets
Stocks
15
6,635,042
6,332,222
Debtors
16
15,104,154
10,004,228
Cash at bank and in hand
292,425
525,881
22,031,621
16,862,331
Creditors: amounts falling due within one year
17
(10,957,703)
(7,782,031)
Net current assets
11,073,918
9,080,300
Total assets less current liabilities
26,464,385
24,480,843
Creditors: amounts falling due after more than one year
18
(4,519,230)
(5,232,175)
Provisions for liabilities
Deferred tax liability
21
1,248,375
1,075,619
(1,248,375)
(1,075,619)
Net assets
20,696,780
18,173,049
Capital and reserves
Called up share capital
23
500
500
Revaluation reserve
23
-
0
296,160
Other reserves
23
100
100
Merger reserve
23
5
5
Profit and loss reserves
24
20,696,175
17,876,284
Total equity
20,696,780
18,173,049
The financial statements were approved by the board of directors and authorised for issue on 16 July 2024 and are signed on its behalf by:
John Carney
Director
Company registration number 03119544 (England and Wales)
CMW PROPERTY & MACHINERY LIMITED
COMPANY BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
6,885,520
7,450,351
Investment property
12
2,725,000
2,062,465
Investments
13
455,202
399,707
10,065,722
9,912,523
Current assets
Debtors
16
3,612,448
2,064,094
Cash at bank and in hand
117,338
341,156
3,729,786
2,405,250
Creditors: amounts falling due within one year
17
(1,879,432)
(977,356)
Net current assets
1,850,354
1,427,894
Total assets less current liabilities
11,916,076
11,340,417
Creditors: amounts falling due after more than one year
18
(3,301,983)
(3,846,478)
Provisions for liabilities
Deferred tax liability
21
165,634
-
0
(165,634)
-
Net assets
8,448,459
7,493,939
Capital and reserves
Called up share capital
23
500
5
Profit and loss reserves
24
8,447,959
7,493,934
Total equity
8,448,459
7,493,939

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,023,925 (2022 - £1,474,120 profit).

The financial statements were approved by the board of directors and authorised for issue on 16 July 2024 and are signed on its behalf by:
John Carney
Director
Company registration number 03119544 (England and Wales)
CMW PROPERTY & MACHINERY LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Revaluation reserve
Merger reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2022
500
333,401
5
100
14,882,208
15,216,214
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
-
3,476,515
3,476,515
Dividends
10
-
-
-
-
(519,680)
(519,680)
Transfers
-
(37,241)
-
-
37,241
-
Balance at 31 December 2022
500
296,160
5
100
17,876,284
18,173,049
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
-
3,626,911
3,626,911
Dividends
10
-
-
-
-
(1,103,180)
(1,103,180)
Transfers
-
(296,160)
-
-
296,160
-
Balance at 31 December 2023
500
-
0
5
100
20,696,175
20,696,780
CMW PROPERTY & MACHINERY LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
5
6,019,814
6,019,819
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
1,474,120
1,474,120
Balance at 31 December 2022
5
7,493,934
7,493,939
Year ended 31 December 2023:
Profit and total comprehensive income
-
2,023,925
2,023,925
Issue of shares
23
495
-
0
495
Dividends
-
(1,069,900)
(1,069,900)
Balance at 31 December 2023
500
8,447,959
8,448,459
CMW PROPERTY & MACHINERY LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
1,572,546
5,746,258
Interest paid
(333,417)
(204,197)
Income taxes paid
(724,777)
(1,277,434)
Net cash inflow from operating activities
514,352
4,264,627
Investing activities
Purchase of tangible fixed assets
(691,948)
(540,751)
Proceeds from disposal of tangible fixed assets
330,000
95,000
Purchase of investment property
-
(7,433)
Purchase of fixed asset investments
(55,000)
-
Amounts advanced to related parties
(864,556)
-
0
Interest received
84
-
0
Net cash used in investing activities
(1,281,420)
(453,184)
Financing activities
Net movement in borrowings
2,734,487
(2,710,864)
Repayment of bank loans
(461,596)
(513,970)
Payment of finance leases obligations
(636,099)
(530,122)
Dividends paid to equity shareholders
(1,103,180)
(519,680)
Net cash generated from/(used in) financing activities
533,612
(4,274,636)
Net decrease in cash and cash equivalents
(233,456)
(463,193)
Cash and cash equivalents at beginning of year
525,881
989,074
Cash and cash equivalents at end of year
292,425
525,881
CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

CMW Property and Machinery Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Cheshire House, 7 Normans Road, Sutton, St Helens, Merseyside, WA9 4JQ.

 

The group consists of CMW Property and Machinery Limited and its subsidiary.

1.1
Accounting convention

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

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

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

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.2
Business combinations

These are the first full set of consolidated financial statements of CMW Property & Machinery Limited following the reorganisation of the group. The reorganisation is described below:

 

The consolidated financial statements have been prepared under the merger method of accounting because the transaction under which the company became the holding company of Cheshire Mouldings & Woodturnings Limited was a group reconstruction with no change in the ultimate ownership of the group at that time. All the shareholdings in Cheshire Mouldings & Woodturnings Limited were exchanged via a share-for-share transfer on 8 March 2023.

 

The result of the application of merger accounting for the group reorganisation is to present the financial statements as if the company and Cheshire Mouldings & Woodturnings Limited always formed a group - the financial statements, including comparatives, have been presented as if the CMW Property & Machinery Limited always owned the shares in Cheshire Mouldings & Woodturnings Limited.

 

The principal steps of the reorganisation were as follows:

 

CMW Property & Machinery Limited is a company limited by shares in the United Kingdom, with initial share capital of £100, consisting of 100 Ordinary shares with a £1 nominal value. On 8 March 2023 the company issued a further 495 Ordinary shares of £1 each.

 

The company became the ultimate holding company of Cheshire Mouldings & Woodturnings Limited on 8 March 2023 by way of a share-for-share exchange. The insertion of the company as a new holding company constitutes a group reorganisation and the transaction is accounted for as a capital reorganisation and merger relief applied in accordance with section 612 of the Companies Act 2006.

 

Under merger relief the shares issued in this transaction were recorded in the consolidated statement of financial position at the nominal value of the shares issued plus the fair value of any additional consideration, which was recorded as a merger reserve in the group financial statements. The assets and liabilities of the subsidiaries are consolidated at book value in the group financial statements and the consolidated reserves of the group are adjusted to reflect the statutory share capital and merger reserve of the group as if it had always existed.

1.3
Basis of consolidation

The consolidated financial statements incorporate those of CMW Property & Machinery Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). The consolidated financial statements have been prepared using merger accounting principles as set out in FRS 102 Section 19 in relation to the business combination of all the subsidiaries. Accordingly the business results have been presented as though the group had been in existence throughout the current and preceding year.

 

All intra-group transactions and balances between group companies are eliminated on consolidation.

1.4
Going concern

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

1.5
Turnover

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

CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Other revenue represents rental income receivable, excluding value added tax.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
4% on cost
Plant and equipment
10% on cost
Other assets
10%-50% on cost
Motor vehicles
25% on cost

Freehold land is not depreciated.

 

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

 

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.

1.7
Investment property

Investment property is carried at fair value plus incremental additions, determined by the directors and derived from market-based evidence. No depreciation is provided.

 

Changes in fair value are recognised in the profit and loss account. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date. Fair values are determined from market-based evidence normally undertaken by professionally qualified valuers.

1.8
Fixed asset investments

Fixed asset investments are reviewed by the directors at each year end date and are held at market value, with any movement in valuation recognised in the profit and loss account. Fixed asset investments represent specialist motorcycles held for capital appreciation, not used within the business.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10
Stocks

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

CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

 

In the 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.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

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

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

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

CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Current tax

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

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

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

 

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

 

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

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

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

 

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock provision

The directors have applied their knowledge of the operations of the business when reviewing the stock listing at the balance sheet date, and have made appropriate provision for any items deemed to be slow moving or obsolete. The movement in the provision is shown in the profit and loss account and recognised in cost of sales.

Investment properties

Investment property is carried at fair value which is determined from market-based evidence normally undertaken by professional qualified valuers. Changes in fair value are recognised in the profit and loss account.

Fixed asset investments

Fixed asset investments are carried at fair value plus incremental additions, determined by the directors and derived from the current market value, adjusted if necessary for any difference in nature or condition of the specific asset. Changes in fair value are recognised in the profit and loss account.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
35,794,400
33,388,039
Rest of Europe
2,065,384
1,279,623
37,859,784
34,667,662
CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 23 -
2023
2022
£
£
Other revenue
Rental income arising from investment properties
149,211
151,846
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(58,015)
73,283
Depreciation of owned tangible fixed assets
1,217,360
899,297
Depreciation of tangible fixed assets held under finance leases
298,682
293,370
(Profit)/loss on disposal of tangible fixed assets
(55,087)
128,065
Operating lease charges
206,631
137,129
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
12,500
-
Audit of the financial statements of the company's subsidiaries
27,250
25,350
39,750
25,350
For other services
All other non-audit services
18,300
6,650
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management and administration
18
16
4
4
Production
47
55
-
-
Total
65
71
4
4
CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 24 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,324,951
2,330,421
-
0
-
0
Social security costs
263,940
298,326
-
-
Pension costs
29,207
26,714
-
0
-
0
2,618,098
2,655,461
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
572,128
628,286
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
188,132
188,362

Key management are the same as the directors of the company.

8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
272,059
153,857
Interest on finance leases and hire purchase contracts
61,358
50,340
Total finance costs
333,417
204,197
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,106,536
791,691
Deferred tax
Origination and reversal of timing differences
172,756
236,738
Total tax charge
1,279,292
1,028,429
CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 25 -

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

2023
2022
£
£
Profit before taxation
4,906,203
4,504,944
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
1,153,939
855,939
Tax effect of expenses that are not deductible in determining taxable profit
44,102
23,026
Effect of change in corporation tax rate
10,237
56,956
Permanent capital allowances in excess of depreciation
-
98,940
Depreciation on assets not qualifying for tax allowances
72,916
60,522
Superdeduction
(1,902)
(68,184)
Enhanced balancing charge
-
1,230
Taxation charge
1,279,292
1,028,429
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
1,103,180
519,680
CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
11
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Other assets
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
9,747,594
8,022,156
2,266,585
164,705
20,201,040
Additions
-
0
392,525
653,563
17,256
1,063,344
Disposals
(265,000)
(149,389)
-
0
(19,999)
(434,388)
At 31 December 2023
9,482,594
8,265,292
2,920,148
161,962
20,829,996
Depreciation and impairment
At 1 January 2023
1,402,018
4,084,484
1,655,419
120,748
7,262,669
Depreciation charged in the year
387,662
650,488
453,462
24,430
1,516,042
Eliminated in respect of disposals
-
0
(149,389)
-
0
(10,086)
(159,475)
At 31 December 2023
1,789,680
4,585,583
2,108,881
135,092
8,619,236
Carrying amount
At 31 December 2023
7,692,914
3,679,709
811,267
26,870
12,210,760
At 31 December 2022
8,345,576
3,937,672
611,166
43,957
12,938,371
Company
Freehold land and buildings
Plant and equipment
Total
£
£
£
Cost
At 1 January 2023
7,760,782
149,389
7,910,171
Disposals
(265,000)
(149,389)
(414,389)
At 31 December 2023
7,495,782
-
0
7,495,782
Depreciation and impairment
At 1 January 2023
310,431
149,389
459,820
Depreciation charged in the year
299,831
-
0
299,831
Eliminated in respect of disposals
-
0
(149,389)
(149,389)
At 31 December 2023
610,262
-
0
610,262
Carrying amount
At 31 December 2023
6,885,520
-
6,885,520
At 31 December 2022
7,450,351
-
7,450,351

The company has reviewed the plant and equipment held which has now all been disposed.

CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Tangible fixed assets
(Continued)
- 27 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
2,501,053
2,825,429
-
0
-
0
Other assets
101,509
115,232
-
0
-
0
Motor vehicles
3,267
13,497
-
0
-
0
2,605,829
2,954,158
-
-
12
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023
2,062,465
2,062,465
Fair value adjustments
662,535
662,535
At 31 December 2023
2,725,000
2,725,000

The group have elected to show properties occupied by the group within property, plant and equipment, with the properties occupied by third parties included above, as investment properties held at fair value.

 

Investment properties are valued by the directors and are reviewed at each year end date on an open market value for existing use basis.

 

Following a recent valuation for all investment properties, undertaken by reputable third party valuers, a fair value adjustment has been made to ensure the fair value shown above is representative of the current market.

13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
495
-
0
Other investments
454,707
399,707
454,707
399,707
454,707
399,707
455,202
399,707

Other fixed asset investments are reviewed by the directors at each year end date and are held at market value.

CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 January 2023
399,707
Additions
55,000
At 31 December 2023
454,707
Carrying amount
At 31 December 2023
454,707
At 31 December 2022
399,707
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
-
399,707
399,707
Additions
495
55,000
55,495
At 31 December 2023
495
454,707
455,202
Carrying amount
At 31 December 2023
495
454,707
455,202
At 31 December 2022
-
399,707
399,707
14
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Cheshire Mouldings & Woodturnings Limited
United Kingdom
Manufacture and sale of timber stair parts and mouldings.
Direct
100.00
CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
905,910
956,529
-
-
Work in progress
-
48,442
-
-
Finished goods and goods for resale
5,729,132
5,327,251
-
0
-
0
6,635,042
6,332,222
-
-

Netted off against stock is a provision of £967,719 (2022: £700,980).

16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
9,960,116
7,494,295
38,950
81,338
Other debtors
4,753,338
2,202,061
3,573,498
1,947,158
Prepayments and accrued income
390,700
279,348
-
0
-
0
15,104,154
9,975,704
3,612,448
2,028,496
Amounts falling due after more than one year:
Amount owed by related parties
-
0
28,524
-
0
28,524
Deferred tax asset (note 21)
-
0
-
0
-
0
7,074
-
28,524
-
35,598
Total debtors
15,104,154
10,004,228
3,612,448
2,064,094
CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
753,852
686,194
753,852
686,194
Obligations under finance leases
20
480,120
576,373
-
0
-
0
Other borrowings
19
3,153,400
418,913
-
0
-
0
Trade creditors
1,851,026
2,386,114
-
0
102,027
Corporation tax payable
610,286
228,527
328,094
140,438
Other taxation and social security
869,091
768,339
-
-
Other creditors
110,645
16,666
765,410
16,282
Accruals and deferred income
3,129,283
2,700,905
32,076
32,415
10,957,703
7,782,031
1,879,432
977,356

Bank loans of £753,852 (2022: £686,194) are secured in favour of HSBC Bank plc by a first-ranking debenture over all assets, an unlimited cross company guarantee, and a legal mortgage over the group's freehold land and property

 

Included within other borrowings are Invoice discounting advances of £3,153,400 (2022: £418,913) which are secured by way of a first fixed charge over the book and other debts of the group.

 

Hire purchase and finance lease liabilities are secured upon the assets to which they relate.

18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
3,202,244
3,731,498
3,202,244
3,731,498
Obligations under finance leases
20
1,217,247
1,385,697
-
0
-
0
Other creditors
99,739
114,980
99,739
114,980
4,519,230
5,232,175
3,301,983
3,846,478

Bank loans of £3,202,244 (2022: £3,731,498) are secured in favour of HSBC Bank plc by a first-ranking debenture over all assets, an unlimited cross company guarantee, and a legal mortgage over the Company's freehold land and property.

 

Hire purchase and finance lease liabilities are secured upon the assets to which they relate.

Amounts included above which fall due after five years are as follows:
Payable by instalments
186,836
986,720
186,836
986,720
CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
3,956,096
4,417,692
3,956,096
4,417,692
Invoice discounting advances
3,153,400
418,913
-
0
-
0
7,109,496
4,836,605
3,956,096
4,417,692
Payable within one year
3,907,252
1,105,107
753,852
686,194
Payable after one year
3,202,244
3,731,498
3,202,244
3,731,498

Bank loans of £3,956,096 (2022: £4,417,692) are secured in favour of HSBC Bank plc by a first-ranking debenture over all assets, an unlimited cross company guarantee, and a legal mortgage over the Company's freehold land and property.

All bank borrowings are secured by way of a debenture including a fixed and floating charge over all assets of the Company.

 

Invoice discounting advances of £3,153,400 (2022: £418,913) are secured by way of a first fixed charge over the book and other debts of the company.

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
480,120
576,373
-
0
-
0
In two to five years
1,217,247
1,385,697
-
0
-
0
1,697,367
1,962,070
-
-

Hire purchase and finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 to 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
21
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
1,092,878
1,080,119
-
-
Revaluations
165,634
-
-
-
Short term timing differences
(10,137)
(4,500)
-
-
1,248,375
1,075,619
-
-
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
-
-
-
7,074
Revaluations
165,634
-
-
-
165,634
-
-
7,074
Group
Company
2023
2023
Movements in the year:
£
£
Liability/(Asset) at 1 January 2023
1,075,619
(7,074)
Charge to profit or loss
172,756
172,708
Liability at 31 December 2023
1,248,375
165,634
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
29,207
26,714

The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. At the balance sheet date £6,329 (2022: £12,188) was outstanding.

CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
500
5
500
5

On 7 March 2023, there was an allotment of 495 ordinary shares which were issued in exchange for 500 fully paid ordinary shares of £1 each in the share capital of Cheshire Mouldings & Woodturnings Limited.

24
Reserves
Merger reserve

Merger reserve is a non-distributable reserve created following the group re-organisation in March 2023 to recognise the fair value of the investment in subsidiary company of the group at that date.

Revaluation reserve

The company previously maintained a revaluation reserve adjusted for excess depreciation charges arising on related fixed assets. In the current year the company has released the balance of this reserve to the profit and loss reserve.

 

Other reserves

The other reserves consist of items for which allocation to the profit and loss account is deemed unsuitable.

Profit and loss reserves
Profit and loss reserves represent accumulated profits less equity dividends paid.
25
Financial commitments, guarantees and contingent liabilities

The subsidiary Cheshire Mouldings & Woodturnings Limited is party to an unlimited cross guarantee, in favour of HSBC Bank plc, in respect of all borrowings of the parent undertaking, CMW Property and Machinery Limited, which at the balance sheet date totalled £3.96m (2022: £4.4m).

 

The group's bankers have provided letters of credit and other guarantees underwritten by the group amounting to £112,000 (2022: £112,000).

CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
26
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
56,218
74,744
-
-
Between two and five years
47,839
48,727
-
-
104,057
123,471
-
-
27
Related party transactions

At 31 December 2023, the total amount due from directors totalled £190,329 (2022: £154,369) and is included with other debtors. At the same date, the group owed the directors £161,319 (2022: £76,702) and is included with other creditors.

 

At the year end, Carney Properties IOM Limited, a company under common control, owed the group £338,256 (2022: £338,707), included within other debtors.

 

At the year end, Square Brick Investments Limited, a company under common control, owed the group £3,913,419 (2022: £1,516,728), also included within other debtors.

28
Controlling party

CMW Property & Machinery Limited is under the control of the company's directors, the controlling shareholders of the group.

CMW PROPERTY & MACHINERY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
29
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
3,626,911
3,476,515
Adjustments for:
Taxation charged
1,279,292
1,028,429
Finance costs
333,417
204,197
Investment income
(84)
-
0
(Gain)/loss on disposal of tangible fixed assets
(55,087)
128,065
Fair value gain on investment properties
(662,535)
-
0
Depreciation and impairment of tangible fixed assets
1,516,042
1,192,667
Movements in working capital:
(Increase)/decrease in stocks
(302,820)
1,399,506
Increase in debtors
(4,235,370)
(2,872,432)
Increase in creditors
72,780
1,189,311
Cash generated from operations
1,572,546
5,746,258
30
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
525,881
(233,456)
292,425
Bank overdrafts
(686,194)
(67,658)
(753,852)
(160,313)
(301,114)
(461,427)
Borrowings excluding overdrafts
(4,150,411)
(2,205,233)
(6,355,644)
Obligations under finance leases
(1,962,070)
264,703
(1,697,367)
(6,272,794)
(2,241,644)
(8,514,438)
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