Company registration number 08846803 (England and Wales)
SAMUEL GRANT (HOLDINGS) LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SAMUEL GRANT (HOLDINGS) LTD
COMPANY INFORMATION
Directors
Mr A D Grant
Mr M P Grant
A J Dean
Secretary
A J Dean
Company number
08846803
Registered office
Unit 1 Orion Way
Cross Green
Leeds
West Yorkshire
LS9 0AR
Auditor
Azets Audit Services Limited
Triune Court
Monks Cross Drive
York
YO32 9GZ
SAMUEL GRANT (HOLDINGS) LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9 - 10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 36
SAMUEL GRANT (HOLDINGS) LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

Samuel Grant (Holdings) Ltd is an investment holding company and the principal activities of its subsidiary undertakings are packaging merchants and furniture production using recycled plastic. We have packaging subsidiaries based in Leeds, Sheffield and the North East with the furniture production subsidiary (Marmax Products) based in County Durham and a recently acquired rewind facility in Stockport.

 

The packaging merchant subsidiaries aim to deliver competitive and honest packaging solutions with exceptional customer services and mainly supply businesses. Marmax products however have many end users ranging from government departments and theme parks to schools and charities and aims to provide a very high quality and innovative product.

Principal risks and uncertainties

The main risks for the whole group continue to be the fluctuations of price raw materials. The uncertainty of its impact means the group has tried to have many suppliers in the UK and Europe to give us options in the case of a downturn. Also due to the capital borrowing needed to build the new Leeds warehouse interest rate rises will remain a threat for the foreseeable future. However, a strategy of fixing the interest rates on our borrowing will be adopted.

 

The main risks for Marmax Products are competition and obtaining quality raw material. The Marmax product is constantly evolving through innovation and design. This enables Marmax to appeal to more markets and offer new products. Marmax is also committed in maintaining a good relationship with its suppliers and constantly monitoring the quality of raw materials.

 

The other risk for Marmax is the source of funding of its customers. With some of its customers exposed to austerity measures and donations Marmax tries to ensure its portfolio of customers is spread in both the private and the public sector.

 

The main risks for the packaging subsidiaries are competition, oil price increases and credit risk.

 

As oil price rises usually indicate a rise in polymer price the group has adopted a group buying strategy. This utilizes our buying power to allow us to delay passing on any price increases to the end user. This allows us to be competitive whilst still being able to deliver one of our core values which is customer service.

 

Credit risk is managed through efficient credit checks and a robust credit control policy with a few larger customers insured.

Development and performance

The Samuel Grant Group will continue to attract the highest calibre of staff. We will continue to provide a safe and non-discriminatory environment for them to work. We believe that our staff are an important part of our success and underpin the core family values of the group.

 

Marmax will continue to develop and innovative its products to further increase its market share whilst also entering new ones.

 

The packaging subsidiaries will continue to achieve organic growth by providing an exceptional and reliable service to existing customers, developing group buying strategy to further achieve economies of scale and also to ensure the group is in a position to pursue acquisition opportunities as and when they arise.

Key performance indicators

The main KPI’s used in the business are turnover and gross profits. We do however aim to achieve the highest accreditations for both quality and environmental standards.

 

As service and environmental impact are at the heart of what we do we have a dedicated team responsible for the monitoring of these.

SAMUEL GRANT (HOLDINGS) LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Results and performance

The results of the group for the year show a turnover of £47.8m (2022- £50m) a profit before taxation of £2.4m (2022- £2.7m). This resulted in an increase in shareholders’ funds from £13.2m in 2022 to £13.7m in 2023.

 

During 2023 the group has continued to grow in its existing markets but also managed to expand into new markets. The furniture subsidiary has invested in new technology in order to reduce its cost of production and therefore capitalize on its existing turnover levels. The packaging subsidiaries have achieved exceptional growth due to the continuing success of bespoke packaging solutions also by adopting a group buying policy they are becoming even more competitive. This ensures the group is competitive while maintaining its core objective of providing exceptional customer service.

 

On behalf of the board

A J Dean
Director
12 September 2024
SAMUEL GRANT (HOLDINGS) LTD
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 company is that of a holding company.

 

The principal activity of the group is that of the merchanting and distribution of packaging materials, and the manufacture and sales of polythene products.

Results and dividends

The results for the year are set out on page 8.

Ordinary interim dividends were paid amounting to £1,209,927 (2022 - £1,000,000). The directors do not recommend payment of a final dividend.

Directors

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

Mr A D Grant
Mr M P Grant
A J Dean
Auditor

The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

On behalf of the board
A J Dean
Director
12 September 2024
SAMUEL GRANT (HOLDINGS) LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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.

SAMUEL GRANT (HOLDINGS) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SAMUEL GRANT (HOLDINGS) LTD
- 5 -
Opinion

We have audited the financial statements of Samuel Grant (Holdings) Ltd (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 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:

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:

SAMUEL GRANT (HOLDINGS) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SAMUEL GRANT (HOLDINGS) LTD
- 6 -
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.

SAMUEL GRANT (HOLDINGS) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SAMUEL GRANT (HOLDINGS) LTD
- 7 -
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.

Martin Davey (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
12 September 2024
Chartered Accountants
Statutory Auditor
Triune Court
Monks Cross Drive
York
YO32 9GZ
SAMUEL GRANT (HOLDINGS) LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
47,770,703
49,902,594
Cost of sales
(35,392,786)
(38,037,551)
Gross profit
12,377,917
11,865,043
Administrative expenses
(9,646,115)
(8,939,186)
Other operating income
5,763
10,245
Operating profit
4
2,737,565
2,936,102
Interest receivable and similar income
26,267
15,006
Interest payable and similar expenses
7
(335,324)
(249,055)
Profit before taxation
2,428,508
2,702,053
Tax on profit
8
(690,181)
(620,899)
Profit for the financial year
24
1,738,327
2,081,154
Total comprehensive income for the year is all attributable to the owners of the parent company.
SAMUEL GRANT (HOLDINGS) LTD
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
2,216,458
2,485,805
Negative goodwill
11
(996,707)
(1,031,790)
Net goodwill
1,219,751
1,454,015
Other intangible assets
11
6,141
25,485
Total intangible assets
1,225,892
1,479,500
Tangible assets
12
11,425,429
11,325,543
Investment property
13
725,000
725,000
Investments
14
9,007
9,007
13,385,328
13,539,050
Current assets
Stocks
15
9,047,607
10,731,445
Debtors
16
9,536,934
10,581,449
Cash at bank and in hand
733,318
548,523
19,317,859
21,861,417
Creditors: amounts falling due within one year
19
(13,697,361)
(16,126,687)
Net current assets
5,620,498
5,734,730
Total assets less current liabilities
19,005,826
19,273,780
Creditors: amounts falling due after more than one year
20
(4,508,913)
(5,462,267)
Provisions for liabilities
Deferred tax liability
21
758,000
601,000
(758,000)
(601,000)
Net assets
13,738,913
13,210,513
Capital and reserves
Called up share capital
23
4,692
4,692
Share premium account
24
5,173,620
5,173,620
Profit and loss reserves
24
8,560,601
8,032,201
Total equity
13,738,913
13,210,513
SAMUEL GRANT (HOLDINGS) LTD
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
The financial statements were approved by the board of directors and authorised for issue on 12 September 2024 and are signed on its behalf by:
12 September 2024
A J Dean
Director
Company registration number 08846803 (England and Wales)
SAMUEL GRANT (HOLDINGS) LTD
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
8,173,620
8,173,620
Current assets
Debtors
16
13,319
1,013,319
Creditors: amounts falling due within one year
19
(2,999,553)
(3,999,553)
Net current liabilities
(2,986,234)
(2,986,234)
Net assets
5,187,386
5,187,386
Capital and reserves
Called up share capital
23
4,692
4,692
Share premium account
24
5,173,620
5,173,620
Profit and loss reserves
24
9,074
9,074
Total equity
5,187,386
5,187,386

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 £1,209,927 (2022 - £1,000,000 profit).

The financial statements were approved by the board of directors and authorised for issue on 12 September 2024 and are signed on its behalf by:
12 September 2024
A J Dean
Director
Company registration number 08846803 (England and Wales)
SAMUEL GRANT (HOLDINGS) LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
4,690
5,173,620
6,951,047
12,129,357
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
2,081,154
2,081,154
Issue of share capital
23
2
-
0
-
2
Dividends
9
-
-
(1,000,000)
(1,000,000)
Balance at 31 December 2022
4,692
5,173,620
8,032,201
13,210,513
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,738,327
1,738,327
Dividends
9
-
-
(1,209,927)
(1,209,927)
Balance at 31 December 2023
4,692
5,173,620
8,560,601
13,738,913
SAMUEL GRANT (HOLDINGS) LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
4,690
5,173,620
9,074
5,187,384
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
1,000,000
1,000,000
Issue of share capital
23
2
-
0
-
2
Dividends
9
-
-
(1,000,000)
(1,000,000)
Balance at 31 December 2022
4,692
5,173,620
9,074
5,187,386
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,209,927
1,209,927
Dividends
9
-
-
(1,209,927)
(1,209,927)
Balance at 31 December 2023
4,692
5,173,620
9,074
5,187,386
SAMUEL GRANT (HOLDINGS) LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
4,926,296
565,170
Interest paid
(335,324)
(249,055)
Income taxes paid
(590,046)
(385,459)
Net cash inflow/(outflow) from operating activities
4,000,926
(69,344)
Investing activities
Purchase of subsidiaries
-
(3,677,137)
Purchase of intangible assets
-
(10,300)
Purchase of tangible fixed assets
(1,371,570)
(1,766,922)
Proceeds from disposal of tangible fixed assets
487,648
317,429
Interest received
26,267
15,006
Net cash used in investing activities
(857,655)
(5,121,924)
Financing activities
Proceeds from borrowings
-
356,875
Proceeds from new bank loans
-
5,628,687
Repayment of bank loans
(999,996)
(583,331)
Payment of finance leases obligations
51,541
74,141
Dividends paid to equity shareholders
(1,209,927)
(400,000)
Net cash (used in)/generated from financing activities
(2,158,382)
5,076,372
Net increase/(decrease) in cash and cash equivalents
984,889
(114,896)
Cash and cash equivalents at beginning of year
(4,950,313)
(4,478,542)
Cash and cash equivalents at end of year
(3,965,424)
(4,593,438)
Relating to:
Cash at bank and in hand
733,318
548,523
Bank overdrafts included in creditors payable within one year
(4,698,742)
(5,141,961)
SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Samuel Grant (Holdings) Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 1 Orion Way, Cross Green, Leeds, LS9 0AR.

 

The group consists of Samuel Grant (Holdings) Ltd and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with 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 £1.

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being the parent of a group that prepares publicly available consolidated financial statements, 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:

 

 

The company has applied section 33.1A of FRS 102 permitting it to not disclose related party transactions with wholly owned group companies.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Samuel Grant (Holdings) Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company 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 represents amounts receivable for sales of goods, net of VAT and trade discounts, and amounts receivable in respect of rent, net of VAT.

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.

Rental income is recognised over the period to which it relates.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

 

Negative goodwill arising on business combinations in respect of acquisitions is included on the balance sheet immediately below any positive goodwill and released to the profit and loss account in the periods in which the non-monetary assets arising on the same acquisition are recovered.  Any excess exceeding the fair value of non-monetary assets acquired shall be recognised in profit or loss in the periods expected to benefit.

 

 

 

 

 

 

 

 

SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Software
20% reducing balance
1.8
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
2.5% straight line
Leasehold land and buildings
10% straight line
Plant and machinery
25% straight line
Fixtures, fittings & equipment
25% reducing balance
Computer equipment
25% straight line
Motor vehicles
25% reducing balance

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.

1.9
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

 

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.12
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.

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.

1.13
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less. Bank overdrafts are shown within borrowings in current liabilities.

1.14
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.

SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
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.

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.

SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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.

1.15
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.

1.16
Taxation

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

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.

SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.17
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.

1.18
Retirement benefits

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

1.19
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.

1.20
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.

SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
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.

Valuation of investment properties

As required by FRS 102, properties which qualify as investment properties are revalued to fair value at each period end. The directors have made use of external specialists to obtain advice on market valuations, as well as using their own knowledge and conducting their own research into current market conditions, however there remains inherent uncertainty. On balance the directors do not consider this to give rise to a material risk as at the year end.

Key sources of estimation uncertainty

The depreciation policy has been set according to managements' experience of the useful lives of a typical asset in each category, something which is reviewed annually. It is not considered practical to use a per unit basis to allocate depreciation without undue cost and therefore amounts are charged annually. The depreciation charged during the year was £778,386 (2022 - £763,487), which the directors feel is a fair reflection of the benefits derived from the consumption of the tangible fixed assets in use during the period.

Bad debt provision

Outstanding trade debtor balances are reviewed on a line by line basis by management to identify possible amounts where a provision is required. Management closely manage the collection of trade debtors and therefore are able to identify balances where there is uncertainty about its recoverability, and determine what provision is required (if any).

Stock provision

At each reporting date an assessment is made for provisions required to recognise a fair valuation of damaged, slow moving or obsolete stock. 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 the profit or loss and provided for in the balance sheet. Reversals of impairment losses are also recognised in profit or loss when they arise.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Packaging materials
43,458,670
44,574,889
Polythene products
4,082,249
5,234,043
Tool rental
262,172
208,522
Discounts
(32,388)
(114,860)
47,770,703
49,902,594
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
47,770,703
49,902,594
SAMUEL GRANT (HOLDINGS) LTD
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
Interest income
26,267
15,006
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
634
119,447
Research and development costs
2,771
-
Depreciation of owned tangible fixed assets
755,313
752,584
Depreciation of tangible fixed assets held under finance leases
23,073
10,903
Loss/(profit) on disposal of tangible fixed assets
5,650
(12,169)
Amortisation of intangible assets
253,608
231,014
Release of negative goodwill
-
(35,083)
Stocks impairment losses recognised or reversed
64,335
-
0
Operating lease charges
87,659
-
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
3,250
3,250
Audit of the financial statements of the company's subsidiaries
44,250
39,350
47,500
42,600
For other services
All other non-audit services
29,500
21,800
SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
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
Directors
3
3
3
3
Administration
81
76
-
-
Selling and distribution
123
117
-
-
Total
207
196
3
3

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
6,099,740
5,751,214
-
0
-
0
Social security costs
604,794
590,769
-
-
Pension costs
383,218
353,669
-
0
-
0
7,087,752
6,695,652
-
0
-
0
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
321,231
229,452
Interest on invoice finance arrangements
-
0
7,867
Other interest on financial liabilities
1,305
4,471
322,536
241,790
Other finance costs:
Interest on finance leases and hire purchase contracts
5,490
3,003
Other interest
7,298
4,262
Total finance costs
335,324
249,055
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
521,700
458,716
Adjustments in respect of prior periods
11,481
-
0
Total current tax
533,181
458,716
SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
2023
2022
£
£
(Continued)
- 25 -
Deferred tax
Origination and reversal of timing differences
157,000
(6,002)
Changes in tax rates
-
0
168,185
Total deferred tax
157,000
162,183
Total tax charge
690,181
620,899

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
2,428,508
2,702,053
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
571,185
513,390
Tax effect of expenses that are not deductible in determining taxable profit
13,086
10,032
Effect of change in corporation tax rate
-
164,144
Depreciation on assets not qualifying for tax allowances
56,497
47,506
Amortisation on assets not qualifying for tax allowances
54,817
-
0
Under/(over) provided in prior years
11,627
-
0
226
-
0
(11,393)
-
0
Other adjustments
(5,864)
(114,173)
Taxation charge
690,181
620,899
9
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
1,209,927
1,000,000
SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Stocks
15
64,335
-
Recognised in:
Cost of sales
64,335
-
11
Intangible fixed assets
Group
Goodwill
Negative goodwill
Software
Total
£
£
£
£
Cost
At 1 January 2023 and 31 December 2023
3,124,778
(2,229,800)
116,727
1,011,705
Amortisation and impairment
At 1 January 2023
638,973
(1,198,010)
91,242
(467,795)
Amortisation charged for the year
269,347
(35,083)
19,344
253,608
At 31 December 2023
908,320
(1,233,093)
110,586
(214,187)
Carrying amount
At 31 December 2023
2,216,458
(996,707)
6,141
1,225,892
At 31 December 2022
2,485,805
(1,031,790)
25,485
1,479,500
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
11,037,338
181,423
5,462,714
87,340
26,854
334,615
17,130,284
Additions
59,241
-
0
1,173,471
25,429
-
0
113,429
1,371,570
Disposals
-
0
-
0
(1,676,589)
-
0
-
0
(55,407)
(1,731,996)
At 31 December 2023
11,096,579
181,423
4,959,596
112,769
26,854
392,637
16,769,858
Depreciation and impairment
At 1 January 2023
1,816,246
33,174
3,693,677
76,986
19,151
165,507
5,804,741
Depreciation charged in the year
276,788
4,535
444,586
4,185
2,054
46,238
778,386
Eliminated in respect of disposals
-
0
-
0
(1,205,529)
-
0
-
0
(33,169)
(1,238,698)
At 31 December 2023
2,093,034
37,709
2,932,734
81,171
21,205
178,576
5,344,429
Carrying amount
At 31 December 2023
9,003,545
143,714
2,026,862
31,598
5,649
214,061
11,425,429
At 31 December 2022
9,221,092
148,249
1,769,037
10,354
7,703
169,108
11,325,543
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Tangible fixed assets
(Continued)
- 28 -

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 machinery
18,622
23,277
-
0
-
0
Motor vehicles
131,512
54,527
-
0
-
0
Computer equipment
4,655
5,729
-
0
-
0
154,789
83,533
-
-

Bank loans and overdrafts are secured against the freehold land and buildings of the group as disclosed in note 17.

 

Included within freehold land and buildings is land valued at £745,000 (2022 - £745,000).

13
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023 and 31 December 2023
725,000
-

The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 December 2016 by Knight Frank, Chartered Surveyors. The directors consider this valuation to be materially correct as at the balance sheet date.

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Cost
893,269
893,269
-
-
Accumulated depreciation
(648,772)
(626,436)
-
-
Carrying amount
244,497
266,833
-
-
SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
29
-
0
-
0
8,173,620
8,173,620
Unlisted investments
9,007
9,007
-
0
-
0
9,007
9,007
8,173,620
8,173,620
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 January 2023 and 31 December 2023
9,007
Carrying amount
At 31 December 2023
9,007
At 31 December 2022
9,007
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
8,173,620
Carrying amount
At 31 December 2023
8,173,620
At 31 December 2022
8,173,620
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
2,804,001
3,272,305
-
-
Work in progress
58,433
69,985
-
-
Finished goods and goods for resale
6,185,173
7,389,155
-
0
-
0
9,047,607
10,731,445
-
-
SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,763,834
8,772,630
-
0
-
0
Unpaid share capital
4,692
4,692
4,692
4,692
Corporation tax recoverable
24
5,000
-
0
-
0
Amounts owed by group undertakings
-
-
8,627
1,008,627
Other debtors
1,062,068
1,289,098
-
0
-
0
Prepayments and accrued income
706,316
510,029
-
0
-
0
9,536,934
10,581,449
13,319
1,013,319
17
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
5,416,673
6,416,669
-
0
-
0
Bank overdrafts
4,698,742
5,498,836
-
0
-
0
10,115,415
11,915,505
-
-
Payable within one year
5,698,738
6,498,833
-
0
-
0
Payable after one year
4,416,677
5,416,672
-
0
-
0

The bank loans and overdrafts are secured against properties held by the group, with the overdraft also secured through cross company gurantees as noted in note 25.

 

The group has two bank loans. The first loan is for £2m and has interest charged at 3.87% per annum and is repayable through quarterly instalments of £166,666 capital plus interest, and a final payment of £166,674. The current balance of this loan is £833,338 (2022: £1,500,002).

 

The second bank loan is for £5m and has interest charged at 5.19% per annum and is repayable through quarterly instalments of £83,333 capital plus interest. The current balance of this loan is £4,583,335 (2022: £4,916,667).

 

Bank overdrafts relate to Facflow invoice financing facilities of £4,376,099 (2022: £4,831,972) which is charged at an interest rate of 4.75% and bank overdrafts of £322,643 (2022: £666,864) which are charge at a 0% interest rate.

 

Other loans relate to invoice discounting facilities held by Clingfoil Limited which were acquired as part of the business combinations.

 

SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
18
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
44,654
31,678
-
0
-
0
In two to five years
97,143
46,740
-
0
-
0
141,797
78,418
-
-
Less: future finance charges
(16,115)
(4,277)
-
0
-
0
125,682
74,141
-
0
-
0

Finance lease payments represent rentals payable by the company or group 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. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. The average length of these leases is 4 years.

19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
17
5,698,738
6,498,833
-
0
-
0
Obligations under finance leases
18
33,446
28,546
-
0
-
0
Trade creditors
4,282,288
5,578,546
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
1,999,553
2,999,553
Corporation tax payable
311,114
372,955
-
0
-
0
Other taxation and social security
1,345,467
1,545,654
-
-
Dividends payable
1,000,000
1,000,000
1,000,000
1,000,000
Other creditors
21,318
257,337
-
0
-
0
Accruals and deferred income
1,004,990
844,816
-
0
-
0
13,697,361
16,126,687
2,999,553
3,999,553

Bank loans and overdrafts are secured as detailed in note 17.

20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
17
4,416,677
5,416,672
-
0
-
0
Obligations under finance leases
18
92,236
45,595
-
0
-
0
4,508,913
5,462,267
-
-

Bank loans and overdrafts are secured as detailed in note 17.

SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
21
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
855,000
686,000
Tax losses
(111,000)
(111,000)
Provisions
(12,000)
-
Investment property
26,000
26,000
758,000
601,000
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
601,000
-
Charge to profit or loss
157,000
-
Liability at 31 December 2023
758,000
-
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
383,218
353,669

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
A Ordinary shares of £1 each
4,690
4,690
4,690
4,690
B Ordinary shares of £1 each
2
2
2
2
4,692
4,692
4,692
4,692
SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
23
Share capital
(Continued)
- 33 -

During the prior year 2 B ordinary shares were issued with an aggregate nominal value of £2.

 

A Ordinary shares have full voting, dividend and capital distribution, including on winding up, rights and are not redeemable.

 

B Ordinary shares are non voting, non redeemable, transferrable back to the company for par value at the request of the board of directors of the company, have no rights to capital including in the event of a disposal or winding up and are discretionary dividend paying.

24
Reserves
Profit and loss reserves

Included within retained profits are non-distributable unrealised losses arising from the revaluation of investment properties of £194,269 (2022 - £194,269), including deferred tax provisions arising on the revaluations.

25
Financial commitments, guarantees and contingent liabilities

The company, jointly with other group undertakings, guarantees the bank indebtedness of all group undertakings. The total contingent liability of the company relating to bank indebtedness at the balance sheet date amounted to £nil (2022 - £394,140).

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
524,657
578,083
-
-
Between two and five years
612,484
989,985
-
-
1,137,141
1,568,068
-
-
SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
27
Directors' transactions

Dividends totalling £1,209,927 (2022 - £1,000,000) in respect of shares held by the company's directors were allocated in the year.

 

No guarantees have been given or received.

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Mr A D S Grant
2.00
1,201,033
20,000
22,587
(100,000)
1,143,620
1,201,033
20,000
22,587
(100,000)
1,143,620
28
Controlling party

In the opinion of the directors, there is no ultimate controlling party.

29
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
Indirect
Samuel Grant Group Limted (1)
England and Wales
Head office and holding company
Ordinary
100.00
-
Samuel Grant (Leeds) Limited (1)
England and Wales
Sale of packaging materials
Ordinary
0
100.00
Marmax Products Limited (2)
England and Wales
Manufacture of recycled polythene products
Ordinary
0
100.00
Clingfoil Limited (3)
England and Wales
Sale of packaging materials
Ordinary
0
100.00
Samuel Grant (North East) Limited (4)
England and Wales
Sale of packaging materials
Ordinary
0
100.00
Samuel Grant (Sheffield) Limited (5)
England and Wales
Sale of packaging materials
Ordinary
0
100.00
Able Packaging Group Limited (6)
England and Wales
Dormant
Ordinary
0
100.00

(1) The registered office is Orion Way, Cross Green, Leeds, LS9 0AR.

 

(2) The registered office is Units 9-12, Tanfield Lea Industrial Estate, Tanfield Lea, Stanley, DH9 9QX.

 

(3) The registered office is Unit 1, Second Avenue, Poynton Industrial Estate, Poynton, SK12 1ND.

 

(4) The registered office is Unit B, Viking Industrial Park, Rolling Mill Road, Jarrow, NE32 3DP.

 

(5) The registered office is Smithy Wood Business Park, 2 Cowley Way, Chapeltown, Sheffield, S35 1QP.

 

(6) Wholly owned by Samuel Grant (Leeds) Limited, with a registered office of Orion Way, Cross Green, Leeds, LS9 0AR.

 

 

SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
30
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
292,938
292,938
Company pension contributions to defined contribution schemes
18,997
18,997
311,935
311,935
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
112,059
124,061
Company pension contributions to defined contribution schemes
8,213
8,213

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

31
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,738,327
2,081,154
Adjustments for:
Taxation charged
690,181
620,899
Finance costs
335,324
249,055
Investment income
(26,267)
(15,006)
Loss/(gain) on disposal of tangible fixed assets
5,650
(12,169)
Amortisation and impairment of intangible assets
253,608
195,931
Depreciation and impairment of tangible fixed assets
778,386
763,487
Movements in working capital:
Decrease/(increase) in stocks
1,683,838
(1,569,210)
Decrease/(increase) in debtors
1,039,539
(2,113,817)
(Decrease)/increase in creditors
(1,572,290)
364,846
Cash generated from operations
4,926,296
565,170
SAMUEL GRANT (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
32
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
548,523
184,795
733,318
Bank overdrafts
(5,498,836)
800,094
(4,698,742)
(4,950,313)
984,889
(3,965,424)
Borrowings excluding overdrafts
(6,416,669)
999,996
(5,416,673)
Obligations under finance leases
(74,141)
(51,541)
(125,682)
(11,441,123)
1,933,344
(9,507,779)
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