REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
FOR |
WESSEX LIFT CO LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
FOR |
WESSEX LIFT CO LIMITED |
WESSEX LIFT CO LIMITED (REGISTERED NUMBER: 01269836) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
WESSEX LIFT CO LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Statutory Auditor |
Manufactory House |
Bell Lane |
Hertford |
Hertfordshire |
SG14 1BP |
BANKERS: |
Corporate Banking |
152 Silbury Boulevard |
Central Milton Keynes |
MK9 1LT |
SOLICITORS: |
Goffs Oak House |
Goffs Lane |
Cheshunt |
Herts |
EN7 5HG |
WESSEX LIFT CO LIMITED (REGISTERED NUMBER: 01269836) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their strategic report for the year ended 31st December 2023. |
REVIEW OF THE BUSINESS |
The company traded throughout the year as manufacturers, installers and service's of lifting equipment for people with mobility problems. |
The results for the financial year ended 31 December 2023 are shown in the annexed financial statements. |
Turnover increased in 2023 by 18% , whilst a pre-tax net profit of £12,191 (2022: Loss: £1,273,868) was generated the return to a profit in the period represent a recovery from the impact of COVID 19 and employment issues and are evidence of the company's commitment to meet its goals and objectives to continue to grow the company. |
Debtor days at the balance sheet date were 78.15 (2022: 79.76). |
During the year, to improve the cashflow of the business, the company entered in to an invoice factoring agreement which is secured on the company's assets. |
Other than as mentioned above, the directors do not consider it necessary, for an understanding of the development, performance, or position of the business, for the company to provide any further detailed financial key performance indicators, including information relating to environmental and employee matters. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company uses various financial instruments these include cash and various items that arise directly from its operations.The main purpose of these financial instruments is to raise finance for the company's operations. |
The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below. The directors review and agree policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years. |
Currency Risk |
The company is exposed to low level transaction foreign exchange risk on purchases. |
About 9.36% (2022: 6.52%) of the company's sales are to customers in export markets. These sales are priced and invoiced in sterling. |
Any Euro receipts are used to finance Euro purchases. Purchases from Sweden are invoiced and paid in Swedish Krone. As the value of these purchases is less than 5% of total purchases the company policy is to obtain the best rate at time of settlement and to accept the low level of associated risk. |
Liquidity Risk |
The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short-term flexibility is achieved by overdraft facilities. |
Interest rate risk |
The company finances its operations through a mixture of retained profits and, if necessary, bank overdrafts and hire purchase agreements. The company is currently very liquid and has minimal borrowing. Interest rates are negotiated and monitored by Ratcliff Group. An inter-company adjustment is made to reflect interest accruing to the Company in respect of credit balances on its current accounts. |
Credit Risk |
The Company's principal financial assets are cash and trade debtors; the principal risk arises therefore from its trade debtors. The impact associated with trade debtor risk is reduced through a broad customer base and significant management focus on aged debt. |
WESSEX LIFT CO LIMITED (REGISTERED NUMBER: 01269836) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history. |
Political Risk |
As a high proportion of the Company's income is reliant on government funding, there is an underlying risk that this funding may be withdrawn. In the current and foreseeable political climate, we believe this risk to be high. The management has had, over the past few years, a policy of diversifying into commercially funded projects and service to reduce this risk. |
RESEARCH AND DEVELOPMENT |
The research and development work carried out at by the company of £69,984 (2022: £95,037) is at a level the directors believe is sufficient to ensure the timetable for the next generation of lifting products to go to market is met. |
ON BEHALF OF THE BOARD: |
WESSEX LIFT CO LIMITED (REGISTERED NUMBER: 01269836) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their report and financial statement for the year ended 31 December 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31st December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
The directors detail their review of the business and their assessment of financial and other risks affecting the company and management objectives and policies within a separate Strategic Report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
A resolution proposing (that) Cook and Partners Limited be appointed as auditors of the company will be put to the Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
WESSEX LIFT CO LIMITED |
Opinion |
We have audited the financial statements of Wessex Lift Co Limited (the 'company') for the year ended 31st December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31st December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
WESSEX LIFT CO LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
WESSEX LIFT CO LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Explanation as to what extent 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, to detect material misstatements in respect of irregularities, including fraud. |
Auditors approach to assessing the risks of material misstatement due to irregularities, including fraud. |
Our approach was as follows: |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity. The following laws and regulations are considered to be significant to the entity: |
>Financial reporting Standard 102 |
>Companies Act 2006 |
>UK General Data Protection Regulation |
We assessed the risks of material misstatement in respect of fraud as follows: |
>Discussed the risk of material misstatement due to irregularities, including fraud with management at the planning stage to confirm that risks had been adequately identified and that the controls in place are sufficient for the size and nature of the business to reduce those risks to an acceptably low level. |
>Undertook an initial analytical review of the financial statements to identify any potentially unusual or unexpected relationships or high risk audit areas. |
>Completed a risk assessment checklist to aid in the identification of Risks for a company of this size and nature. |
>We considered the risk of fraud through management override of controls, a common risk in a company of this size and nature, in response; we incorporated testing of manual journal entries into our audit approach and undertook a purely substantive approach to the audit with no reliance placed on controls. |
>Accounting policies were reviewed at the planning stage to identify any subjective measurements or complex transactions where management would have the potential to show bias. |
>Ensured during the audit planning meeting that all in the audit team are aware of the risks identified and particular areas that were susceptible to misstatement, |
>Throughout the audit additional substantive testing was undertaken in areas where there was perceived to be a medium or high risk of misstatement. |
>Audit testing was undertaken in a manner that was unpredictable in nature, selection and timing when compared to the previous years work. |
>The engagement partners final review of the audit file and financial statements included a detailed review of all areas of medium or high risk identified at the planning stage of the audit. |
Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above: |
>Financial reporting Standard 102, Companies Act 2006 and UK General Data Protection Regulation. The audit team all have a good understanding of the requirements under these laws and regulations common to most trading businesses and were alert throughout the audit to any potential instances of non-compliance. |
>Further, at both the planning and completion stage of the audit enquiries where made of management regarding any known instances of fraud or non-compliance with laws and regulations |
>These representations were corroborated where possible through the review of board minutes. No contradictory evidence was noted. |
We consider that the work detailed above has ensured that the likelihood of detection of irregularities including fraud is considered to be high both at management level and during our audit approach. It is however worth noting that there is an inherent difficulty in detecting irregularities and there is no guarantee that all irregularities have been identified. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
WESSEX LIFT CO LIMITED |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditor |
Manufactory House |
Bell Lane |
Hertford |
Hertfordshire |
SG14 1BP |
WESSEX LIFT CO LIMITED (REGISTERED NUMBER: 01269836) |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
4,118,920 | 4,401,567 |
OPERATING PROFIT/(LOSS) | 6 | ( |
) |
Interest payable and similar expenses | 7 |
PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
Tax on profit/(loss) | 8 | ( |
) | ( |
) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME |
Deferred tax movement | ( |
) |
Income tax relating to other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
( |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
WESSEX LIFT CO LIMITED (REGISTERED NUMBER: 01269836) |
BALANCE SHEET |
31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Share premium | 19 |
Revaluation reserve | 19 |
Retained earnings | 19 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
WESSEX LIFT CO LIMITED (REGISTERED NUMBER: 01269836) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Called up |
share | Retained | Share | Revaluation | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1st January 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31st December 2022 | ( |
) |
Changes in equity |
Total comprehensive income | - | - | ( |
) |
Balance at 31st December 2023 | ( |
) |
WESSEX LIFT CO LIMITED (REGISTERED NUMBER: 01269836) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Wessex Lift Co Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are presented in pounds sterling. |
The directors have assessed various factors and risks affecting the company and its ability in these difficult economic times to continue to trade as a going concern.They have not identified any material uncertainties or risks related to events or conditions that could cast significant doubt about the company's ability to continue as a going concern and therefore the financial statements for the year ended 31st December 2023 have been prepared using the going concern basis of accounting. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirement of paragraph 33.7. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Land and Buildings |
Initial recognition of assets was at cost plus any fees or other allowable costs to bring the asset into use. |
Subsequently the property is revalued at each financial year end at fair value. A professional revaluation will be undertaken with sufficient regularity to ensure that the directors have ascertained an accurate fair value at each year end. The gain or loss upon revaluation will be recognised in a revaluation reserve through other comprehensive income, this will then be subject to deferred tax also recognised through other comprehensive income. |
The property held in the accounts was revalued in 2020 by a firm of Chartered Surveyors, the revaluation is deemed appropriate to give a true and fair view in the financial statements. |
WESSEX LIFT CO LIMITED (REGISTERED NUMBER: 01269836) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stock and work in progress are valued at the lower of cost and net realisable value arrived at on the following basis: |
1. Product materials and components are included on a first-in, first-out basis. |
2. Work in progress and finished goods are included on a basis appropriate to the state of completion of the various individual items taking account of materials and components together with an appropriate share of labour costs and production overheads. |
Net realisable value is based on estimated selling price less all further costs to completion. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
WESSEX LIFT CO LIMITED (REGISTERED NUMBER: 01269836) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
3. | TURNOVER |
The turnover and profit (2022 - loss) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 12,728,071 | 11,003,887 |
Overseas | 1,160,812 | 767,524 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Production | 76 | 80 |
Administration | 53 | 50 |
5. | DIRECTORS' EMOLUMENTS |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
6. | OPERATING PROFIT/(LOSS) |
The operating profit (2022 - operating loss) is stated after charging: |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Auditors' remuneration |
Research and development |
WESSEX LIFT CO LIMITED (REGISTERED NUMBER: 01269836) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Hire purchase |
8. | TAXATION |
Analysis of the tax credit |
The tax credit on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Deferred tax | ( |
) | ( |
) |
Tax on profit/(loss) | ( |
) | ( |
) |
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit/(loss) before tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Movement in short term timing differences | ( |
) | ( |
) |
Superdeduction | ( |
) |
Change in rate of tax | ( |
) |
Change in rate of tax through revaluation reserve | ( |
) |
Total tax credit | (108,188 | ) | (253,674 | ) |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Deferred tax movement | ( |
) | - | (38,250 | ) |
WESSEX LIFT CO LIMITED (REGISTERED NUMBER: 01269836) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
9. | TANGIBLE FIXED ASSETS |
Freehold | Plant and | Motor |
property | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1st January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
The freehold property is the subject of a charge in favour of National Westminster Bank Plc. |
Additionally the freehold land is the subject of a charge in favour of the Ratcliff Group Pension Scheme (see note 16). |
Cost or valuation at 31st December 2023 is represented by: |
Freehold | Plant and | Motor |
property | machinery | vehicles | Totals |
£ | £ | £ | £ |
Valuation in 2019 | 25,000 | - | - | 25,000 |
Valuation in 2020 | 950,000 | - | - | 950,000 |
Cost | 525,000 | 2,096,356 | 51,826 | 2,673,182 |
1,500,000 | 2,096,356 | 51,826 | 3,648,182 |
The valuations mentioned have been verified and endorsed by the board of directors. |
WESSEX LIFT CO LIMITED (REGISTERED NUMBER: 01269836) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1st January 2023 |
and 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
10. | STOCKS |
2023 | 2022 |
£ | £ |
Raw materials |
Work-in-progress |
Finished goods |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Deferred tax asset |
Prepayments and accrued income |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 14) |
Hire purchase contracts (see note 15) |
Trade creditors |
Amounts owed to group undertakings |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
WESSEX LIFT CO LIMITED (REGISTERED NUMBER: 01269836) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 15) |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
During the year, the Company entered into an invoice factoring agreement, which is secured on the company's assets. |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
WESSEX LIFT CO LIMITED (REGISTERED NUMBER: 01269836) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
There is a Debenture dated 14 May 1990 and a Charge dated 15 July 2022 both in favour of National Westminster Bank Plc (the Bank) respectively over the assets of the company and the company's freehold property. Additionally, there is a cross guarantee of unlimited amount in favour of the Bank given by this company's parent and fellow subsidiary company. |
There is also a charge dated 21 January 2021 in favour of the Ratcliff Group Pension Scheme over the freehold land of the property. |
The company entered into an agreement with RBS Invoice Financing on the 20th July 2023 for a debt purchase facility reflected in loans in the financial statements. These loans are secured against the assets of the company and guaranteed by the parent company The Ratcliff Group Limited. |
17. | DEFERRED TAX |
£ |
Balance at 1st January 2023 | ( |
) |
Provided during year | ( |
) |
Balance at 31st December 2023 | ( |
) |
The deferred tax liability / (Asset) is made up as follows: |
2023 | 2022 |
£ | £ |
Accelerated capital allowances | 50,534 | 46,087 |
Unrelieved tax losses carried forward | (584,671 | ) | (456,109 | ) |
Other timing differences | (8,860 | ) | (6,036 | ) |
Revaluation of land & Buildings | 237,500 | 180,500 |
(305,497 | ) | (235,559 | ) |
18. | CALLED UP SHARE CAPITAL |
All shares in issue rank pari passu. |
19. | RESERVES |
Retained | Share | Revaluation |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1st January 2023 | ( |
) | 280,699 |
Profit for the year |
Deferred tax movement | - | - | (38,250 | ) | (38,250 | ) |
At 31st December 2023 | ( |
) | 362,828 |
WESSEX LIFT CO LIMITED (REGISTERED NUMBER: 01269836) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
20. | PENSION COMMITMENTS |
The company operates two pension schemes covering all employees. The schemes are both of the defined contribution type, and the assets of each are held in separate trustee administered funds. Contributions to the schemes are charged against profits in the period in which they are payable to the schemes. The pension charge for the year represents contributions payable by the company to the schemes and amounted to £171,967 (2022: £178,956). At the balance sheet date £35,440 (2022: £31,768) of contributions were unpaid but paid after-date within the required time limit. |
21. | ULTIMATE PARENT COMPANY |
The ultimate parent company is the Ratcliff Group Limited, a company registered in England and Wales. No one individual has ultimate control of the group. |
The Ratcliff Group Limited prepares group financial statements and copies can be obtained from its registered office. |
22. | CONTINGENT LIABILITIES |
There exists an unlimited cross guarantee between the company, a fellow subsidiary undertaking and the ultimate parent (see note 16) in favour of The Royal Bank of Scotland Plc. At the balance sheet date the value of this company's potential commitment under this guarantee was £937,547 (2022: £nil). |
23. | RELATED PARTY DISCLOSURES |
The company has taken advantage of the exemption in Financial Reporting Standard 102 from the requirement to disclose transactions with group companies on the grounds that consolidated financial statements are prepared by the parent company. |