KJ Willis Group Limited
Annual report and financial statements
For the year ended 31 December 2023
KJ Willis Group Limited
Company information
Director
Mr K J Willis
Company number
13143630
Registered office
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke on Trent
Staffordshire
ST1 5SQ
KJ Willis Group Limited
Contents
Page
Strategic report
1 - 2
Director's report
3 - 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 - 33
KJ Willis Group Limited
Strategic report
For the year ended 31 December 2023
- 1 -

The director presents the strategic report for the year ended 31 December 2023.

Review of the business

The principal activity of the group for the year under review was that of purchase and manufacturer of boxes for packaging. The group trades from Unit 5 Rosevale Business Park, Parkhouse Industrial Estate West, Newcastle-under-Lyme, ST5 7UB.

 

The directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and group’s position at the year end. The review is consistent with the size and noncomplex nature of the business and is written in the context of the risks and uncertainties faced.

 

Turnover for the group has increased from £17,009,153 to £18,941,013 as a result of increased volumes of sales of boxes and cartons in the year.

 

The group has managed its direct costs effectively, meaning that the gross profit margin has remained consistent at 19.4% (2022 - 19.5%).

 

Administrative expenses have increased from £1,615,220 to £2,146,927, reflecting general cost increases across most categories of expenditure.

Profit before taxation has decreased from £1,493,833 to £1,116,738, as a result of these increased overhead costs, along with increased interest charges in the year as a result of new finance being obtained.

 

The net assets of the group have increased during the year from £1,659,837 to £2,294,467, reflecting the group profitability.

 

The most notable areas of change on the Group Balance Sheet are within tangible fixed assets and creditors falling due after more than one year, as a result of investment from the group in freehold property and plant and machinery, through bank loans and finance leases.

Principal risks and uncertainties

The business environment in which the company operates continues to be challenging. The principal risks continue to be the general economic climate as well as potential bad debts.

 

With these risks and uncertainties in mind, the directors are aware that any plans for future development of the business may be subject to future events outside our control.

 

Financial risks

The group’s operations expose it to a variety of financial risks that include the effect of change in credit, liquidity exchange rate risk and interest rate risk. The group has in place a risk management program that seeks to limit the adverse effects on the financial performance of the group by monitoring levels of debt finance and the related costs. The group also actively reviews whether the currency risks need to be hedged. There is currently no hedging in place and the group does not use derivative financial instruments to manage interest rate costs.

 

Credit risk

The group has implemented policies that require appropriate credit checks on customers before sales are made and a credit insurance policy is in place.

 

Liquidity risk

The directors believe that the group has sufficient funds available to support its activities in the future. The directors have maintained strong cash position keeping the balance sheet strong, to help safeguard the future of the business and to guard against any unforeseen circumstances.

KJ Willis Group Limited
Strategic report (continued)
For the year ended 31 December 2023
- 2 -

Cyber security risk

Like other groups, the Group is susceptible to cyber-attacks, and there is a risk that confidentiality, integrity and the availability of data in its systems are jeopardized. The Group has implemented policies in relation to information security, including cyber security. Specific controls are in place to prevent and detect security issues relating to business-critical systems. The Group is committed to ongoing capital expenditure as appropriate for its size to continually enhance the IT infrastructure.

 

Legislation and regulatory risk

The legislation applying to our business is becoming more complex. Such changes can increase compliance costs and the risk of non-compliance. We actively monitor such changes and act on them where necessary. These changes can also present opportunities, e.g. as food businesses move away from plastic packaging to the kinds of paper-based packaging which are made by us.

Development and performance

The directors have implemented a strategy to enable growth, entering new markets and diversifying the business, based on a 3 – 5 year plan.

 

Turnover has increased from £17,009,153 to £18,941,013 (+11%).

 

Operating profit has decreased from £1,696,375 to £1,531,318 (-10%).

 

Profit before taxation has decreased from £1,493,833 to £1,116,738 (-25%).

 

After taxation and dividends, shareholders funds have increased to £2,294,317 from £1,659,687.

Key performance indicators

The directors consider the key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, gross margin and operating profit.

 

The gross profit margin has remained consistent at 19.4% (2022 - 19.5%). Turnover and operating profit have been noted above.

On behalf of the board

Mr K J Willis
Director
13 September 2024
KJ Willis Group Limited
Director's report
For the year ended 31 December 2023
- 3 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of a holding company.

 

The principal activity of the group continued to be that of the manufacture and wholesale of packaging products.

Results and dividends

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

Ordinary dividends were paid amounting to £175,000. The director does not recommend payment of a further dividend.

Director

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

Mr K J Willis
Statement of director's responsibilities

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

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

KJ Willis Group Limited
Director's report (continued)
For the year ended 31 December 2023
- 4 -
On behalf of the board
Mr K J Willis
Director
13 September 2024
KJ Willis Group Limited
Independent auditor's report
To the members of KJ Willis Group Limited
- 5 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director 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 director is 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.

KJ Willis Group Limited
Independent auditor's report (continued)
To the members of KJ Willis Group Limited
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

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

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 director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the parent company or to cease operations, or has 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

KJ Willis Group Limited
Independent auditor's report (continued)
To the members of KJ Willis Group Limited
- 7 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Other matters which we are required to address

The prior period financial statements are not audited, therefore the corresponding figures are unaudited.

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.

Stacey Parr FCCA
For and on behalf of
16 September 2024
DJH Audit Limited
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke on Trent
Staffordshire
ST1 5SQ
KJ Willis Group Limited
Group statement of comprehensive income
For the year ended 31 December 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
18,941,013
17,009,153
Cost of sales
(15,258,004)
(13,695,349)
Gross profit
3,683,009
3,313,804
Distribution costs
(5,424)
(3,089)
Administrative expenses
(2,146,927)
(1,615,220)
Other operating income
660
880
Operating profit
4
1,531,318
1,696,375
Interest receivable and similar income
7
31
106
Interest payable and similar expenses
8
(414,611)
(202,648)
Profit before taxation
1,116,738
1,493,833
Tax on profit
9
(307,108)
(336,486)
Profit for the financial year
26
809,630
1,157,347
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
KJ Willis Group Limited
Group balance sheet
As at 31 December 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
381,016
433,551
Other intangible assets
11
3,467
2,117
Total intangible assets
384,483
435,668
Tangible assets
12
8,253,244
2,570,477
8,637,727
3,006,145
Current assets
Stocks
15
1,095,082
1,212,203
Debtors
16
4,345,854
4,308,176
Cash at bank and in hand
220,789
245,312
5,661,725
5,765,691
Creditors: amounts falling due within one year
17
(5,929,689)
(4,807,579)
Net current (liabilities)/assets
(267,964)
958,112
Total assets less current liabilities
8,369,763
3,964,257
Creditors: amounts falling due after more than one year
18
(5,631,896)
(2,170,890)
Provisions for liabilities
Deferred tax liability
21
443,400
133,530
(443,400)
(133,530)
Net assets
2,294,467
1,659,837
Capital and reserves
Called up share capital
25
150
150
Profit and loss reserves
26
2,294,317
1,659,687
Total equity
2,294,467
1,659,837
KJ Willis Group Limited
Group balance sheet (continued)
As at 31 December 2023
31 December 2023
- 10 -

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved and signed by the director and authorised for issue on 13 September 2024
13 September 2024
Mr K J Willis
Director
Company registration number 13143630 (England and Wales)
KJ Willis Group Limited
Company balance sheet
As at 31 December 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
3,539,911
3,539,911
Current assets
Debtors
16
-
0
75
Cash at bank and in hand
4
14
4
89
Creditors: amounts falling due within one year
17
(1,487,466)
(1,974,916)
Net current liabilities
(1,487,462)
(1,974,827)
Total assets less current liabilities
2,052,449
1,565,084
Creditors: amounts falling due after more than one year
18
(250,000)
(500,000)
Net assets
1,802,449
1,065,084
Capital and reserves
Called up share capital
25
150
150
Profit and loss reserves
26
1,802,299
1,064,934
Total equity
1,802,449
1,065,084

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 £912,365 (2022 - £1,239,934 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 13 September 2024
13 September 2024
Mr K J Willis
Director
Company registration number 13143630 (England and Wales)
KJ Willis Group Limited
Group statement of changes in equity
For the year ended 31 December 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
150
677,340
677,490
Year ended 31 December 2022:
Profit and total comprehensive income
-
1,157,347
1,157,347
Dividends
10
-
(175,000)
(175,000)
Balance at 31 December 2022
150
1,659,687
1,659,837
Year ended 31 December 2023:
Profit and total comprehensive income
-
809,630
809,630
Dividends
10
-
(175,000)
(175,000)
Balance at 31 December 2023
150
2,294,317
2,294,467
KJ Willis Group Limited
Company statement of changes in equity
For the year ended 31 December 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
150
-
0
150
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
1,239,934
1,239,934
Dividends
10
-
(175,000)
(175,000)
Balance at 31 December 2022
150
1,064,934
1,065,084
Year ended 31 December 2023:
Profit and total comprehensive income
-
912,365
912,365
Dividends
10
-
(175,000)
(175,000)
Balance at 31 December 2023
150
1,802,299
1,802,449
KJ Willis Group Limited
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
3,134,138
2,247,574
Income taxes paid
(313,245)
(248,636)
Net cash inflow from operating activities
2,820,893
1,998,938
Investing activities
Purchase of intangible assets
(1,950)
(2,387)
Purchase of tangible fixed assets
(1,618,383)
(361,284)
Proceeds from disposal of tangible fixed assets
-
250,999
Purchase of subsidiaries, net of cash acquired
-
(2,351,299)
Payment of deferred consideration
(308,480)
-
Interest received
31
-
0
Dividends received
-
0
106
Net cash used in investing activities
(1,928,782)
(2,463,865)
Financing activities
Proceeds from new bank loans
-
1,790,900
Repayment of bank loans
(68,348)
(741,466)
Payment of finance leases obligations
(258,675)
(72,523)
Interest paid
(414,611)
(202,648)
Dividends paid to equity shareholders
(175,000)
(175,000)
Net cash (used in)/generated from financing activities
(916,634)
599,263
Net (decrease)/increase in cash and cash equivalents
(24,523)
134,336
Cash and cash equivalents at beginning of year
245,312
110,976
Cash and cash equivalents at end of year
220,789
245,312
KJ Willis Group Limited
Notes to the group financial statements
For the year ended 31 December 2023
- 15 -
1
Accounting policies
Company information

KJ Willis Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Glades, Festival Way, Festival Park, Stoke-on-Trent, Staffordshire, ST1 5SQ.

 

The principal place of business is Unit 5 Rosevale Business Park, Parkhouse Industrial Estate West, Newcastle-under-Lyme, ST5 7UB.

 

The group consists of KJ Willis Group Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments 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 a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

The financial statements of the company are consolidated in the financial statements of KJ Willis Group Limited as at 31 December 2023. These consolidated financial statements are available from its registered office, The Glades, Festival Way, Festival Park, Stoke-on-Trent, Staffordshire, ST1 5SQ.

 

The company has taken advantage of exemption, under the terms of the Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

KJ Willis Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 16 -
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.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company KJ Willis Group Limited together with all entities controlled by the parent company (its subsidiaries).

 

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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

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

1.5
Turnover

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

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.

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.

KJ Willis Group Limited
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 bases:

Software
15% on 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
Not depreciated / straight line over 50 years
Plant and equipment
15% on reducing balance
Fixtures and fittings
25% on reducing balance / 25% on cost
Computers
33.33% / 25% / 15% on reducing balance
Motor vehicles
25% on reducing balance / 20% on cost

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.

One of the freehold buildings is not depreciated on the basis that the group maintains the property to a good standard and the directors do not believe that the value will fall below cost.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities 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.

1.10
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).

KJ Willis Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 18 -
1.11
Stocks

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

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement 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.

1.12
Cash and cash equivalents

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

1.13
Financial instruments

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

 

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

 

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

Basic financial assets

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

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.

KJ Willis Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 19 -
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.

Derecognition of financial liabilities

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

1.14
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.

1.15
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.

KJ Willis Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 20 -
Deferred tax

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

 

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

1.16
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.

1.17
Retirement benefits

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

1.18
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.

1.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

KJ Willis Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 21 -
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.

1.21

Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

 

The expense in relation to options over the parent company’s shares granted to employees of a subsidiary is recognised by the company as a capital contribution, and presented as an increase in the company’s investment in that subsidiary.

2
Judgements and key sources of estimation uncertainty

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

 

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

Key sources of estimation uncertainty

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

Freehold property

Previously freehold property has been depreciated over 50 years on a straight line basis. During the year a new property was purchased and based on the estimated useful economic life of the property being deemed infinite, the directors made the decision not to depreciate it. The company maintains the property to a good standard and the directors do not believe that the value will fall below cost.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Packaging
18,941,013
17,009,153
KJ Willis Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
3
Turnover and other revenue
(Continued)
- 22 -
2023
2022
£
£
Turnover analysed by geographical market
UK
18,455,559
16,505,271
Rest of world
485,454
503,882
18,941,013
17,009,153
2023
2022
£
£
Other revenue
Interest income
31
-
Loan interest received
-
106
Grants received
660
880
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
13,339
(4,858)
Government grants
(660)
(880)
Fees payable to the group's auditor for the audit of the group's financial statements
38,000
-
Depreciation of owned tangible fixed assets
150,614
124,186
Depreciation of tangible fixed assets held under finance leases
89,683
20,521
Loss/(profit) on disposal of tangible fixed assets
39,631
(9,225)
Amortisation of intangible assets
53,135
46,907
Operating lease charges
163,144
201,288
5
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
Director
1
1
-
-
Administration
22
20
-
-
Cost of sales
19
16
-
-
Total
42
37
-
0
-
0
KJ Willis Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
5
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,154,436
858,447
-
0
-
0
Social security costs
107,094
75,259
-
-
Pension costs
97,321
51,586
-
0
-
0
1,358,851
985,292
-
0
-
0
6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
10,790
11,163
Company pension contributions to defined contribution schemes
39,330
35,000
50,120
46,163

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
31
-
Other income from investments
Interest received
-
0
106
Total income
31
106
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
276,989
72,562
Interest on invoice finance arrangements
115,607
99,911
Other interest on financial liabilities
6,911
11,066
Interest on finance leases and hire purchase contracts
15,104
19,109
Total finance costs
414,611
202,648
KJ Willis Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 24 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
301,256
Adjustments in respect of prior periods
(2,762)
-
0
Total current tax
(2,762)
301,256
Deferred tax
Origination and reversal of timing differences
309,870
35,230
Total tax charge
307,108
336,486

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
1,116,738
1,493,833
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
279,185
283,828
Tax effect of expenses that are not deductible in determining taxable profit
20,152
9,105
Effect of change in corporation tax rate
-
43,692
Depreciation on assets not qualifying for tax allowances
3,354
2,493
Amortisation on assets not qualifying for tax allowances
13,212
1,354
Deferred tax adjustments in respect of prior years
(6,347)
3,569
Enhanced super-deduction
(2,448)
(7,492)
Deferred tax overprovided for
-
0
6,411
Corporation tax underprovided for
-
0
(6,474)
Taxation charge
307,108
336,486
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
175,000
175,000
KJ Willis Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 25 -
11
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2023
620,313
2,387
622,700
Additions
-
0
1,950
1,950
At 31 December 2023
620,313
4,337
624,650
Amortisation and impairment
At 1 January 2023
186,762
270
187,032
Amortisation charged for the year
52,535
600
53,135
At 31 December 2023
239,297
870
240,167
Carrying amount
At 31 December 2023
381,016
3,467
384,483
At 31 December 2022
433,551
2,117
435,668
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
KJ Willis Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 26 -
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
2,059,999
324,092
107,450
23,177
458,026
2,972,744
Additions
4,180,682
1,372,270
96,919
9,657
307,668
5,967,196
Disposals
-
0
(151,700)
(59,949)
-
0
(61,000)
(272,649)
At 31 December 2023
6,240,681
1,544,662
144,420
32,834
704,694
8,667,291
Depreciation and impairment
At 1 January 2023
39,997
65,732
75,715
12,188
208,635
402,267
Depreciation charged in the year
13,118
123,212
20,598
5,256
78,113
240,297
Eliminated in respect of disposals
-
0
(119,463)
(55,856)
-
0
(53,198)
(228,517)
At 31 December 2023
53,115
69,481
40,457
17,444
233,550
414,047
Carrying amount
At 31 December 2023
6,187,566
1,475,181
103,963
15,390
471,144
8,253,244
At 31 December 2022
2,020,002
258,360
31,735
10,989
249,391
2,570,477
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
1,158,755
92,481
-
0
-
0
Motor vehicles
349,727
83,178
-
0
-
0
1,508,482
175,659
-
-
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
3,539,911
3,539,911
KJ Willis Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
13
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
3,539,911
Carrying amount
At 31 December 2023
3,539,911
At 31 December 2022
3,539,911
14
Subsidiaries

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

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Lyburn Supplies Limited
1
Ordinary
100.00
-
Advanced Packaging Solutions Limited
1
Ordinary
100.00
-
Advanced Packaging Limited
1
Ordinary
0
100.00

Registered office addresses (all UK unless otherwise indicated):

1
The Glades, Festival Way, Stoke-on-Trent, ST1 5SQ

Advanced Packaging Solutions Limited (company no 06800438) is exempt from audit by virtue of section 479A of the Companies Act 2006.

15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
1,095,082
1,212,203
-
0
-
0
KJ Willis Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 28 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,928,633
3,587,244
-
0
-
0
Corporation tax recoverable
36,203
36,107
-
0
-
0
Other debtors
213,732
82,582
-
0
75
Prepayments and accrued income
167,286
602,243
-
0
-
0
4,345,854
4,308,176
-
75
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
280,139
139,284
-
0
-
0
Obligations under finance leases
20
211,109
45,680
-
0
-
0
Trade creditors
3,005,441
2,871,880
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
1,191,564
1,666,436
Corporation tax payable
-
0
316,007
-
0
-
0
Other taxation and social security
342,264
186,239
-
-
Deferred income
22
1,980
2,640
-
0
-
0
Other creditors
1,816,333
1,059,207
294,527
308,480
Accruals and deferred income
272,423
186,642
1,375
-
0
5,929,689
4,807,579
1,487,466
1,974,916
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
4,260,547
1,578,875
-
0
-
0
Obligations under finance leases
20
1,121,349
92,015
-
0
-
0
Other creditors
250,000
500,000
250,000
500,000
5,631,896
2,170,890
250,000
500,000
Amounts included above which fall due after five years are as follows:
Payable by instalments
3,525,127
1,096,193
-
-
KJ Willis Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 29 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
4,540,686
1,718,159
-
0
-
0
Payable within one year
280,139
139,284
-
0
-
0
Payable after one year
4,260,547
1,578,875
-
0
-
0

The loans are secured by way of an all assets debenture containing fixed and floating charges over the assets of the company and also a negative pledge.

 

There is a first legal charge over Units 18-20 Parkhouse Industrial Estate and Unit 5 Rosevale Road.

 

Amounts due under hire purchase contracts of £1,332,458 (2022 - £137,695) are secured against the assets which they relate to.

 

The invoice finance facility is secured by way of full title guarantee, and as continuing security for the payment of the debt, an absolute assignment of the rights.

Long term bank debt is in the form of two secured loans which are monthly repayment (capital and interest) with HSBC Bank. The first loan is set to mature in May 2043 at an interest rate of 2.8% per annum. The second loan is set to mature in January 2037 at an interest rate of 3.05% per annum.

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
211,109
45,680
-
0
-
0
In two to five years
1,121,349
92,015
-
0
-
0
1,332,458
137,695
-
-

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. Finance leases across the group have terms ranging from 36 months to 84 months. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

KJ Willis Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 30 -
21
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
443,400
133,530
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
133,530
-
Charge to profit or loss
309,870
-
Liability at 31 December 2023
443,400
-
22
Deferred income
Group
Company
2023
2022
2023
2022
£
£
£
£
Other deferred income
1,980
2,640
-
-
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
97,321
51,586

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. Contributions totalling £4,523 (2022 - £4,064) were payable to the fund at the balance sheet date and are included in creditors.

KJ Willis Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 31 -
24
Share-based payment transactions
Group
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 1 January 2023
-
-
-
-
Granted
10
-
1.00
-
Outstanding at 31 December 2023
10
-
1.00
-
Exercisable at 31 December 2023
-
-
-
-

 

The shares vest to the option holders on an exit event such as the sale of over 50% of the share capital of the Company, the sale of the Company business or a stock market listing. This is an equity-settled share based payment arrangement and the maximum term of the options granted is 10 years. We have estimated the share options to vest to the option holders over 10 years.

 

The Company is unable to directly measure the fair value of employee services received. Instead the fair value of share options granted is determined using the Black-Scholes model. The model is internationally recognised as being appropriate to value employee share schemes similar to this scheme.

 

The key assumptions used are the exercise price of £1 per share option set out in the option agreement, a share price based on a valuation of the company, the government risk free interest rate and the life of the option from the date of grant to the estimated date of exercise. The volatility of the share price was determined by utilising historic variations in earnings.

 

The total carrying amount at the end of the period for liabilities arising from the share-based payment transactions is £nil (2022 - £nil).

25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
142
142
142
142
Ordinary B of £1 each
8
8
8
8
150
150
150
150

Each Ordinary share carries voting rights, dividend rights and the right to participate in distributions on winding up.

 

Each Ordinary B share carries no voting rights, dividend rights and no right to participate in distributions on winding up.

 

 

 

 

KJ Willis Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 32 -
26
Reserves
Profit and loss reserves

Profit and loss reserves are made up of accumulated profits less accumulated losses and distributions to shareholders.

27
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
75,990
62,896
-
-
Between two and five years
118,031
67,320
-
-
In over five years
927
4,758
-
-
194,948
134,974
-
-
28
Related party transactions
Transactions with related parties

At the balance sheet date, a subsidiary of the group was owed £53,271 (2022 - £47,271) from a company under common control. The loan is interest free, has no repayment terms and is not secured.

 

During the year, a subsidiary made purchases of £145,038 (2022 - £138,723) from a company under common control. At the balance sheet date, there was also a loan outstanding owed by this related party. The balance was £134,319 (2022 - £nil). The loan is interest free, has no repayment terms and is not secured.

29
Directors' transactions

Dividends totalling £88,200 (2022 - £89,000) were paid in the year in respect of shares held by the company director.

At the balance sheet date the company and group owed £44,527 (2022 - £75 owed to the group) to the director.

30
Controlling party

The ultimate controlling party is Mr K J Willis.

KJ Willis Group Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 33 -
31
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
809,630
1,157,347
Adjustments for:
Taxation charged
307,108
336,486
Finance costs
414,611
202,648
Investment income
(31)
(106)
Loss/(gain) on disposal of tangible fixed assets
39,631
(9,225)
Amortisation and impairment of intangible assets
53,135
46,907
Depreciation and impairment of tangible fixed assets
240,297
144,707
Movements in working capital:
Decrease/(increase) in stocks
117,121
(249,345)
Increase in debtors
(37,678)
(565,418)
Increase in creditors
1,190,314
1,183,573
Cash generated from operations
3,134,138
2,247,574

Major non-cash transactions

In the current year the group entered into hire purchase and finance lease agreements to the value of £1,453,438 (2022 - £nil). No cash was received by the group in these transactions.

 

The group also obtained bank loans to finance tangible fixed asset additions during the year where no cash was received into the group. These bank loans totalled £2,890,875 (2022 - £nil).

32
Analysis of changes in net debt - group
1 January 2023
Cash flows
New finance leases
Other non-cash changes
31 December 2023
£
£
£
£
£
Cash at bank and in hand
245,312
(24,523)
-
-
220,789
Borrowings excluding overdrafts
(1,718,159)
68,348
-
(2,890,875)
(4,540,686)
Obligations under finance leases
(137,695)
258,675
(1,453,438)
-
(1,332,458)
(1,610,542)
302,500
(1,453,438)
(2,890,875)
(5,652,355)
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