IRIS Accounts Production v24.2.0.383 04138012 director 1.1.23 31.12.23 31.12.23 true false true true false false true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh041380122022-12-31041380122023-12-31041380122023-01-012023-12-31041380122021-12-31041380122022-01-012022-12-31041380122022-12-3104138012ns15:EnglandWales2023-01-012023-12-3104138012ns14:PoundSterling2023-01-012023-12-3104138012ns10:Director12023-01-012023-12-3104138012ns10:PrivateLimitedCompanyLtd2023-01-012023-12-3104138012ns10:FRS1022023-01-012023-12-3104138012ns10:Audited2023-01-012023-12-3104138012ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-01-012023-12-3104138012ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-01-012023-12-3104138012ns10:FullAccounts2023-01-012023-12-3104138012ns10:OrdinaryShareClass12023-01-012023-12-3104138012ns10:CompanySecretary12023-01-012023-12-3104138012ns10:RegisteredOffice2023-01-012023-12-3104138012ns10:Director22023-01-012023-12-3104138012ns5:RetainedEarningsAccumulatedLosses2022-12-3104138012ns5:RetainedEarningsAccumulatedLosses2021-12-3104138012ns5:RetainedEarningsAccumulatedLosses2023-01-012023-12-3104138012ns5:RetainedEarningsAccumulatedLosses2022-01-012022-12-3104138012ns5:RetainedEarningsAccumulatedLosses2023-12-3104138012ns5:RetainedEarningsAccumulatedLosses2022-12-3104138012ns5:CurrentFinancialInstruments2023-12-3104138012ns5:CurrentFinancialInstruments2022-12-3104138012ns5:ShareCapital2023-12-3104138012ns5:ShareCapital2022-12-3104138012ns5:PlantMachinery2023-01-012023-12-3104138012ns5:FurnitureFittings2023-01-012023-12-3104138012ns10:HighestPaidDirector2023-01-012023-12-3104138012ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2023-01-012023-12-3104138012ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2022-01-012022-12-3104138012ns5:OwnedAssets2023-01-012023-12-3104138012ns5:OwnedAssets2022-01-012022-12-3104138012ns10:OrdinaryShareClass12022-01-012022-12-3104138012ns5:LeaseholdImprovements2022-12-3104138012ns5:PlantMachinery2022-12-3104138012ns5:FurnitureFittings2022-12-3104138012ns5:LeaseholdImprovements2023-01-012023-12-3104138012ns5:LeaseholdImprovements2023-12-3104138012ns5:PlantMachinery2023-12-3104138012ns5:FurnitureFittings2023-12-3104138012ns5:LeaseholdImprovements2022-12-3104138012ns5:PlantMachinery2022-12-3104138012ns5:FurnitureFittings2022-12-3104138012ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-12-3104138012ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-12-3104138012ns5:DeferredTaxation2022-12-3104138012ns5:DeferredTaxation2023-01-012023-12-3104138012ns5:DeferredTaxation2023-12-3104138012ns10:OrdinaryShareClass12023-12-31
REGISTERED NUMBER: 04138012 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

TRENCH LIMITED

TRENCH LIMITED (REGISTERED NUMBER: 04138012)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Director 3

Report of the Independent Auditors 4

Statement of Income and Retained Earnings 8

Statement of Financial Position 9

Statement of Cash Flows 10

Notes to the Statement of Cash Flows 11

Notes to the Financial Statements 12


TRENCH LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTOR: Mrs C Portman



SECRETARY: Mrs C Portman



REGISTERED OFFICE: Unit 5 CMT Trading Estate
Broadwell Road
Oldbury
West Midlands
B69 4BQ



REGISTERED NUMBER: 04138012 (England and Wales)



SENIOR STATUTORY AUDITOR: Ian Cattell F.C.A



AUDITORS: Crombies Accountants Limited
Chartered Accountants and Statutory Auditor
34 Waterloo Road
Wolverhampton
West Midlands
WV1 4DG

TRENCH LIMITED (REGISTERED NUMBER: 04138012)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

REVIEW OF BUSINESS
As a service orientated brand within the UK marketplace we are in a strong position to continue our strategy of being the preferred supplier of cable management systems to the UK wholesale market.

Continuation of service levels and investment in machinery have allowed us to achieve year on year growth in both revenue and operating profit. Turnover has grown in line with our expectations.

The business remains very focused on continuing investment in plant, technology and people.

PRINCIPAL RISKS AND UNCERTAINTIES
The company operates in a very competitive market sector and any reduction in economic growth affecting the construction industry may adversely affect the company's revenue and margins.

Credit risk
The business insures 95% of all trade debtors and has excellent monitoring systems. There is no significant singular risk as the exposure is spread over a large number of customers.

Liquidity risk
The company has a very strong individual cash flow position and would be supported by its HQ as necessary to ensure that the Company has adequate financing to meet its every day requirements

KEY PERFORMANCE INDICATORS
During an inflationary period the business was able to pass the rising cost of raw materials into the marketplace. At the same time revenues increased Trench have maintained debtor days. A strong focus on Debt Management has allowed us to maintain debtor day's year on year. Stock levels remain consistent in order to protect the service level offered and continued further investment into machinery during 2023 has allowed us to increase productivity.

2022 2023

Debtor Days 78 71

EBITDA Margin 26.1% 28%

FUTURE DEVELOPMENTS
The company continues to expand its current portfolio and should see continued growth in the future.

KEY DECISIONS
During this period the Company has continued to make investments in machinery in order to ensure the future long terms success of the business. All large investment decisions are made jointly with the Shareholders.

SHAREHOLDERS
The Company is privately owned and the Director communicates on a regular basis with the shareholders.

ON BEHALF OF THE BOARD:





Mrs C Portman - Director


6 February 2024

TRENCH LIMITED (REGISTERED NUMBER: 04138012)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 31 DECEMBER 2023

The director presents her report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was the manufacture and distribution of cable management systems.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 will be £ 5,000,000 .

DIRECTORS
Mrs C Portman has held office during the whole of the period from 1 January 2023 to the date of this report.

Other changes in directors holding office are as follows:

M Buenfeld - resigned 30 June 2023

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Strategic Report, the Report of the Director 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 she is 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 director is 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 director is 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 her to ensure that the financial statements comply with the Companies Act 2006. She is 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 director is 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 she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Crombies Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mrs C Portman - Director


6 February 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
TRENCH LIMITED

Opinion
We have audited the financial statements of Trench Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 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 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 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 director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
TRENCH 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 Director.

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 director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page three, 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 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 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 company or to cease operations, or has no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
TRENCH 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:

-the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-we identified the laws and regulations applicable to the company through discussions with directors and other management

-we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental (including Waste Electrical and Electronic Equipment recycling (WEEE) Regulations 2013) and health and safety legislation;

-we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

-making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

-considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

-performed analytical procedures to identify any unusual or unexpected relationships;

-tested journal entries to identify unusual transactions;

-assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and

-investigated the rationale behind significant or unusual transactions.

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

-agreeing financial statement disclosures to underlying supporting documentation;

-reading the minutes of meetings of those charged with governance;

-enquiring of management as to actual and potential litigation and claims; and

-reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
TRENCH LIMITED

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 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.




Ian Cattell F.C.A (Senior Statutory Auditor)
for and on behalf of Crombies Accountants Limited
Chartered Accountants and Statutory Auditor
34 Waterloo Road
Wolverhampton
West Midlands
WV1 4DG

6 February 2024

TRENCH LIMITED (REGISTERED NUMBER: 04138012)

STATEMENT OF INCOME AND
RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £    £    £   

TURNOVER 15,863,689 15,118,323

Cost of sales 8,268,319 9,185,211
GROSS PROFIT 7,595,370 5,933,112

Distribution costs 814,991 894,185
Administrative expenses 2,673,952 2,613,261
3,488,943 3,507,446
OPERATING PROFIT and
PROFIT BEFORE TAXATION 4,106,427 2,425,666

Tax on profit 5 964,477 453,235
PROFIT FOR THE FINANCIAL YEAR 3,141,950 1,972,431

Retained earnings at beginning of year 9,850,323 7,877,892

Dividends 6 (5,000,000 ) -

RETAINED EARNINGS AT END OF
YEAR

7,992,273

9,850,323

TRENCH LIMITED (REGISTERED NUMBER: 04138012)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 7 1,962,077 2,266,402

CURRENT ASSETS
Stocks 8 1,316,641 1,356,374
Debtors 9 2,755,211 3,008,128
Cash at bank and in hand 5,686,003 6,697,146
9,757,855 11,061,648
CREDITORS
Amounts falling due within one year 10 3,358,126 3,058,960
NET CURRENT ASSETS 6,399,729 8,002,688
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,361,806

10,269,090

PROVISIONS FOR LIABILITIES 11 368,533 417,767
NET ASSETS 7,993,273 9,851,323

CAPITAL AND RESERVES
Called up share capital 12 1,000 1,000
Retained earnings 13 7,992,273 9,850,323
SHAREHOLDERS' FUNDS 7,993,273 9,851,323

The financial statements were approved by the director and authorised for issue on 6 February 2024 and were signed by:





Mrs C Portman - Director


TRENCH LIMITED (REGISTERED NUMBER: 04138012)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 4,568,709 4,186,458
Tax paid (500,035 ) (728,330 )
Net cash from operating activities 4,068,674 3,458,128

Cash flows from investing activities
Purchase of tangible fixed assets (79,816 ) (230,203 )
Sale of tangible fixed assets (1 ) 10,501
Net cash from investing activities (79,817 ) (219,702 )

Cash flows from financing activities
Equity dividends paid (5,000,000 ) -
Net cash from financing activities (5,000,000 ) -

(Decrease)/increase in cash and cash equivalents (1,011,143 ) 3,238,426
Cash and cash equivalents at beginning of
year

2

6,697,146

3,458,720

Cash and cash equivalents at end of year 2 5,686,003 6,697,146

TRENCH LIMITED (REGISTERED NUMBER: 04138012)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 4,106,427 2,425,666
Depreciation charges 382,030 335,004
Loss/(profit) on disposal of fixed assets 2,112 (2,115 )
4,490,569 2,758,555
Decrease in stocks 39,733 610,092
Decrease/(increase) in trade and other debtors 252,917 (617,942 )
(Decrease)/increase in trade and other creditors (214,510 ) 1,435,753
Cash generated from operations 4,568,709 4,186,458

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 5,686,003 6,697,146
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 6,697,146 3,458,720


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 6,697,146 (1,011,143 ) 5,686,003
6,697,146 (1,011,143 ) 5,686,003
Total 6,697,146 (1,011,143 ) 5,686,003

TRENCH LIMITED (REGISTERED NUMBER: 04138012)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

Trench Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The preparation of financial statements in compliance with FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies. ( see later note)

Judgments and key sources of estimation uncertainty
In preparing these financial statements, the directors have had to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenditure.

The estimates and associated assumptions are based on historic experiences and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. the judgments, estimates and assumptions which have significant risk of material adjustments to carrying amount of assets and liabilities are:

-Tangible fixed assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technical innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

-Stock provisions
The company has recognised provisions for the impairment of stock. The judgments, estimates and and associated assumptions necessary to calculate these provisions are based on historical experience and other reasonable factors. In the case of the provisions for the impairment of stock, this covers obsolescence through technological or customer specific reasons. This provision is based on the assessment of stock value and ageing, quantities on hand, usage, changes in the market, technical developments and warranty periods. The value of stock included in the financial statements is net of the provision for the impairment of stock.

-Bad debt provision
The company has recognised provisions against specific trade debtor balances. The judgments and estimates necessary to calculate these provisions are based on historical experience and other reasonable factors. This provision is based on the age of debt balances and the assessed recoverability. The value of trade debtors in note 7 is stated net of the provision of bad debts.

Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and it can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover is recognised from the sale of goods when the entity has transferred to the buyer the significant risks and rewards of ownership of the goods. This occurs when the buyer takes possession of the goods.

TRENCH LIMITED (REGISTERED NUMBER: 04138012)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 10% on cost
Fixtures and fittings - 20% on cost

Tangible assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amounts of the replaced part is derecognised. Repairs and maintenance are charged to the statement of income and retained earnings during the period in which they are incurred.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Stocks are stated at the lower of cost and net realisable value. Cost is based on the cost of purchases on a first in, first out basis.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its net realisable value. The impairment loss is recognised immediately in the financial statements.

Financial instruments
Financial assets

Financial assets comprise cash at bank and in hand, trade debtors, amounts owed by group undertakings and other debtors; these are initially recorded at cost on the date they originate and are subsequently recorded at cost less provisions for impairment. The company considers evidence of impairment for all individual trade and other debtors and amounts owed by group undertakings, and any subsequent impairment is recognised in the statement of income and retained earnings.

Impairment of financial assets

Impairment provisions are recognised when there is objective evidence that a financial asset or group of financial assets is impaired. Objective evidence includes significant financial difficulties of the counterparty, default or significant delays in payment.

Impairment provisions represent the difference between the net carrying amount of a financial asset and the value of the expected future cash receipts from that asset.

Financial liabilities

Financial liabilities comprise trade creditors, other creditors and accruals; these are initially recorded, and subsequently carried, at cost on the date they originate.

Financial liabilities also comprise obligations under finance lease and hire purchase contracts; these are initially recorded at cost on the date they originate and are subsequently carried at amortised cost under the effective interest method,


TRENCH LIMITED (REGISTERED NUMBER: 04138012)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case tax is recognised in other comprehensive income or directly in equity, respectively.

Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies
Foreign currency transactions are translated into sterling using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the retranslation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account.

Hire purchase and leasing commitments
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. The assets of the scheme are held separately from those of the company in an independently administered fund.

Provisions
Provisions are made where an event has taken place that gives rise to a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of obligation.

Provisions are charged as an expense to the statement of income and retained earnings in the year that the company becomes aware of the obligation, and are measured at the best estimate at the statement of financial position date of the expenditure required to settle obligation, taking into account relevant risks and uncertainties.

Going concern
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.

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Interest income
Interest income is recognised in the financial statements using the effective interest method.

TRENCH LIMITED (REGISTERED NUMBER: 04138012)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,635,281 2,338,658
Social security costs 28,856 26,683
Other pension costs 73,954 70,501
2,738,091 2,435,842

The average number of employees during the year was as follows:
2023 2022

Production labour 17 17
Production support 15 13
Sales & Admin 24 23
56 53

2023 2022
£    £   
Directors' remuneration 211,000 188,000

Information regarding the highest paid director for the year ended 31 December 2023 is as follows:
2023
£   
Emoluments etc 211,000

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 34,513 37,746
Depreciation - owned assets 339,217 335,003
Loss/(profit) on disposal of fixed assets 2,112 (2,115 )
Auditors' remuneration 12,500 12,000

5. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 1,013,711 443,785

Deferred tax:
Accelerated capital allowances (49,234 ) 9,450
Tax on profit 964,477 453,235

TRENCH LIMITED (REGISTERED NUMBER: 04138012)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

6. DIVIDENDS
2023 2022
£    £   
Interim 5,000,000 -

7. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and
property machinery fittings Totals
£    £    £    £   
COST
At 1 January 2023 217,937 3,380,429 114,109 3,712,475
Additions - 52,104 27,712 79,816
Disposals - (29,307 ) (183 ) (29,490 )
At 31 December 2023 217,937 3,403,226 141,638 3,762,801
DEPRECIATION
At 1 January 2023 215,241 1,159,295 71,537 1,446,073
Charge for year 712 319,462 19,043 339,217
Eliminated on disposal - (27,196 ) (183 ) (27,379 )
Impairments - 42,813 - 42,813
At 31 December 2023 215,953 1,494,374 90,397 1,800,724
NET BOOK VALUE
At 31 December 2023 1,984 1,908,852 51,241 1,962,077
At 31 December 2022 2,696 2,221,134 42,572 2,266,402

8. STOCKS
2023 2022
£    £   
Stocks 1,316,641 1,356,374

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 2,626,715 2,954,529
Prepayments and accrued income 128,496 53,599
2,755,211 3,008,128

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 651,107 596,939
Amounts owed to group undertakings 7,603 1,196,607
Tax 744,038 230,362
Social security and other taxes 428,938 411,962
Pensions control - 15,421
Accrued expenses 1,526,440 607,669
3,358,126 3,058,960

TRENCH LIMITED (REGISTERED NUMBER: 04138012)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

11. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 368,533 417,767

Deferred
tax
£   
Balance at 1 January 2023 417,767
Credit to Income Statement during year (49,234 )
Balance at 31 December 2023 368,533

12. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1,000 Ordinary £1 1,000 1,000

13. RESERVES
Retained
earnings
£   

At 1 January 2023 9,850,323
Profit for the year 3,141,950
Dividends (5,000,000 )
At 31 December 2023 7,992,273

14. PENSION COMMITMENTS

The pension cost for the year was £78,850 (2022: £74,857). There were no outstanding or prepaid contributions at the balance sheet date.

15. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is OBO Bettermann Stiftung, a trust registered in the public register of the Office of Justice Liechtenstein.

16. PARENT UNDERTAKING

The most immediate parent company, which produces consolidated accounts is Arvigrat Holding AG, a company incorporated in Switzerland, whose registered office is situated at Lochrutiried 1, CH-6386 Wolfenschiessen, Switzerland.

17. TRANSACTIONS WITH GROUP COMPANIES

During the year the holding company OBO Bettermann Vertriebsholding International GmbH & Co. KG raised management charges of £107,950 to the company (2022 £98,910). The balance outstanding from Trench Limited at the balance sheet date was £3,650 (2022 £101,983)

All transactions took place at normal market rates.