Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31490truetruetruetruetruetrue2023-01-01falsetruesupplier of agricultural and groundcare machinery and lorry cranes519false 00519868 2023-01-01 2023-12-31 00519868 2022-01-01 2022-12-31 00519868 2023-12-31 00519868 2022-12-31 00519868 2022-01-01 00519868 1 2023-01-01 2023-12-31 00519868 1 2022-01-01 2022-12-31 00519868 d:CompanySecretary1 2023-01-01 2023-12-31 00519868 d:Director1 2023-01-01 2023-12-31 00519868 d:Director2 2023-01-01 2023-12-31 00519868 d:Director2 2023-12-31 00519868 d:Director3 2023-01-01 2023-12-31 00519868 d:Director3 2023-12-31 00519868 d:Director4 2023-01-01 2023-12-31 00519868 d:Director4 2023-12-31 00519868 d:Director6 2023-01-01 2023-12-31 00519868 d:Director6 2023-12-31 00519868 d:RegisteredOffice 2023-01-01 2023-12-31 00519868 d:Agent1 2023-01-01 2023-12-31 00519868 e:PlantMachinery 2023-01-01 2023-12-31 00519868 e:PlantMachinery 2023-12-31 00519868 e:PlantMachinery 2022-12-31 00519868 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 00519868 e:MotorVehicles 2023-01-01 2023-12-31 00519868 e:MotorVehicles 2023-12-31 00519868 e:MotorVehicles 2022-12-31 00519868 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 00519868 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 00519868 e:Goodwill 2023-12-31 00519868 e:Goodwill 2022-12-31 00519868 e:CurrentFinancialInstruments 2023-12-31 00519868 e:CurrentFinancialInstruments 2022-12-31 00519868 e:CurrentFinancialInstruments 1 2023-12-31 00519868 e:CurrentFinancialInstruments 1 2022-12-31 00519868 e:CurrentFinancialInstruments 3 2023-12-31 00519868 e:CurrentFinancialInstruments 3 2022-12-31 00519868 e:CurrentFinancialInstruments 6 2023-12-31 00519868 e:CurrentFinancialInstruments 6 2022-12-31 00519868 e:Non-currentFinancialInstruments 2023-12-31 00519868 e:Non-currentFinancialInstruments 2022-12-31 00519868 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 00519868 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 00519868 e:Non-currentFinancialInstruments e:AfterOneYear 2023-12-31 00519868 e:Non-currentFinancialInstruments e:AfterOneYear 2022-12-31 00519868 e:ReportableOperatingSegment1 2023-01-01 2023-12-31 00519868 e:ReportableOperatingSegment1 2022-01-01 2022-12-31 00519868 e:ReportableOperatingSegment2 2023-01-01 2023-12-31 00519868 e:ReportableOperatingSegment2 2022-01-01 2022-12-31 00519868 e:UKTax 2023-01-01 2023-12-31 00519868 e:UKTax 2022-01-01 2022-12-31 00519868 e:ShareCapital 2023-12-31 00519868 e:ShareCapital 2022-12-31 00519868 e:ShareCapital 2022-01-01 00519868 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 00519868 e:RetainedEarningsAccumulatedLosses 2023-12-31 00519868 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 00519868 e:RetainedEarningsAccumulatedLosses 2022-12-31 00519868 e:RetainedEarningsAccumulatedLosses 2022-01-01 00519868 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-12-31 00519868 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-12-31 00519868 e:FinancialLiabilitiesFairValueThroughProfitOrLoss e:ListedExchangeTraded 2023-12-31 00519868 e:FinancialLiabilitiesFairValueThroughProfitOrLoss e:ListedExchangeTraded 2022-12-31 00519868 e:AcceleratedTaxDepreciationDeferredTax 2023-12-31 00519868 e:AcceleratedTaxDepreciationDeferredTax 2022-12-31 00519868 e:RetirementBenefitObligationsDeferredTax 2023-12-31 00519868 e:RetirementBenefitObligationsDeferredTax 2022-12-31 00519868 d:OrdinaryShareClass1 2023-01-01 2023-12-31 00519868 d:OrdinaryShareClass1 2023-12-31 00519868 d:OrdinaryShareClass1 2022-12-31 00519868 d:FRS102 2023-01-01 2023-12-31 00519868 d:Audited 2023-01-01 2023-12-31 00519868 d:FullAccounts 2023-01-01 2023-12-31 00519868 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 00519868 e:HirePurchaseContracts e:WithinOneYear 2023-12-31 00519868 e:HirePurchaseContracts e:WithinOneYear 2022-12-31 00519868 e:HirePurchaseContracts e:BetweenOneFiveYears 2023-12-31 00519868 e:HirePurchaseContracts e:BetweenOneFiveYears 2022-12-31 00519868 e:Goodwill e:ExternallyAcquiredIntangibleAssets 2023-01-01 2023-12-31 00519868 2 2023-01-01 2023-12-31 00519868 e:Goodwill e:OwnedIntangibleAssets 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 00519868
















T. H. WHITE LIMITED




ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

































T. H. WHITE LIMITED

 
COMPANY INFORMATION


DIRECTORS
A D Scott, M.Eng., M.I.E.T. 
J Fowler (appointed 1 April 2024)
A Lovegrove (appointed 3 January 2023)




COMPANY SECRETARY
L M Earle



REGISTERED NUMBER
00519868



REGISTERED OFFICE
Nursteed Road

Devizes

Wiltshire

SN10 3EA




INDEPENDENT AUDITORS
Bishop Fleming LLP
Chartered Accountants & Statutory Auditors

10 Temple Back

Bristol

BS1 6FL




BANKERS
HSBC UK Bank PLC
62 George White Street

Broadmead

Bristol

BS1 3BA




SOLICITORS
Wansbroughs Solicitors
Northgate House

Northgate Street

Devizes

SN10 1JX






T. H. WHITE LIMITED


CONTENTS



Page
Strategic report
 
1 - 4
Directors' report
 
5 - 6
Independent auditors' report
 
7 - 10
Statement of comprehensive income
 
11
Statement of financial position
 
12
Statement of changes in equity
 
13
Notes to the financial statements
 
14 - 29



T. H. WHITE LIMITED

 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

INTRODUCTION
 
The directors present the strategic report and financial statements for the year ended 2023.
The Company is one of the UK’s largest independent suppliers of agricultural and professional groundcare machinery and lorry cranes. The Company is based in Devizes and is a key part of the T. H. White Group, (‘the Group’) formed in 1832.
The Group’s purpose is to help customers get the best from innovation to support livelihoods for generations. Its activities are based around its engineering services capabilities with a major presence in the machinery markets of agriculture, professional groundcare, construction, lorry loader cranes, construction cranes and forestry cranes. Additionally, the Group designs and project manages the construction of grain stores, grain processing plants and dairy parlours. It also has a specialist electrical, fire and security design and installation division. Whilst it is based in Devizes, it has offices, workshops and parts stores in locations throughout the United Kingdom, as well as an increasing number of mobile service technicians.
The Group has over thirty franchise machinery partners, which include Palfinger, New Holland, Case IH, Manitou, Kuhn, DeLaval, Develon (formally Doosan), Ransomes-Jacobsen, Iseki, Ferris and Jensen.

BUSINESS REVIEW
 
The Company’s performance was positive in 2023, even though the machinery and capital equipment markets have slowed down compared to prior years, primarily because of a steady rise in UK interest rates that peaked in August 2023 and remained at a sixteen year high for the balance of the year.
Overall company turnover for 2023 was up from £142.3m (2022) to £147.8m (2023).
Sales revenue for machinery, parts and service were strong across the Group, despite being adversely affected by product availability and the market conditions.
The Company has been successfully in maintaining the substantial order book with all the challenges in the year going into 2024.
In the year, the Group continued its banking facilities with HSBC bank, giving the company flexibility and responsiveness.
The outlook for 2024 appears to be further softening of the markets, in particular agriculture, with continuing challenges of interest costs, changes to subsidies and wet weather. The labour market, wage inflation and OEM lead times are not expected to be as much of a concern as they have been in 2023.

PRINCIPAL RISKS AND UNCERTAINTIES
 
Risk Management
The Company provides a range of business-critical products and services to a range of customers across a diversified range of industrial sectors. The directors regularly monitor and re-evaluate the risks faced to ensure that the approach is appropriate.
The principal risks and uncertainties within the group are as follows:
Market risk
The Company's market demand is affected by economic cycles, sector specific factors (such as commodity prices for farmers) and, for some of its businesses, government subsidies. By operating a diverse set of businesses the Company is able to mitigate the risk of severe drops in demand in any one market. It also seeks to maintain a strong balance sheet and take a long-term view in building customer and supplier relationships, both of which help it cope with short-term risks.
Credit risk
The Company allows normal trade terms to customers but has in place a series of controls to ensure that the level of exposure or risk is carefully monitored.
 
Page 1


T. H. WHITE LIMITED


STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Liquidity risk
The Group operates a consolidated banking facility operating across all subsidiary companies. By virtue of its strong balance sheet and historical trading results the Group has access to significant bank and supplier stocking facilities that can be used to mitigate working capital fluctuations.
The level of working capital is closely monitored and controlled across the Group and normal demands are covered by the overdraft facility. Longer term investments are typically funded with an element of long-term debt linked to SONIA and secured on property.
Foreign exchange risk
The Company will quote Sterling prices to customers for items purchased from overseas suppliers and therefore carries a level of foreign exchange exposure. In order to mitigate this risk, forward contracts are purchased to protect against short-term fluctuations.
P
eople
As with all business, the Company’s performance is dependent upon its employees, particularly for the sales and aftersales activities, as well as the management and leadership functions. The Company mitigates the risk of attrition by careful recruitment activities, good leadership practices, appropriate policies and management systems as well as an appropriately resourced HR team. Long-term succession planning reviews are carried out annually.
Health and Safety
The Board believes that excellence in the management of health and safety is an essential element within its business plan, and effective control of health and safety is achieved through cooperative effort at all levels within the organisation. The Company is committed to continuous improvement of its management of health and safety on legal, moral and economic grounds. This is achieved through its core values that govern the way in which it relates to its colleagues, customers, suppliers, and the wider community.
Franchise partners
The Company operates with over thirty franchise partners on both a formal and informal basis in the supply and servicing of equipment, aiming to provide customers with an exceptional level of service. Continued success remains dependent upon the ongoing development of product solutions and product quality, as well as the sustaining of good relationships with supplier partners. The Company seeks to work closely with all its franchise partners in order to understand and influence their plans as appropriate.
Business Relationships
The Company has well-established and long-standing relationships with many of its key suppliers and its core customer base. These relationships are greatly valued and have an underlying influence on the business strategy.

Page 2


T. H. WHITE LIMITED


STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

FINANCIAL KEY PERFORMANCE INDICATORS
 
The Company’s key financial performance indicators during the year were as follows:

                                                        
2023
2022
                                                        
£'000
£'000
Turnover
147,823
142,363
Gross profit
27,769
26,090
Profit before taxation
810
2,239
Shareholders equity
16,280
17,040
Return on capital employed
4.97%
13.3%
Number of employees
519
490


OTHER KEY PERFORMANCE INDICATORS
 
The Company operates a number of KPI measures specific to each trading division but focused on operational performance, profitability and cash generation. These are reported monthly. 

DIRECTORS' STATEMENT OF COMPLIANCE WITH DUTY TO PROMOTE THE SUCCESS OF THE COMPANY
 
Directors' duties
The board of directors of T.H. WHITE Ltd consider that they have fulfilled their individual and collective duty under section 172(1) of the Companies Act 2006 to act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of shareholders as a whole and in doing so, have regard to a number of broader matters which are set out below.
Employees
The Company is committed to maintaining its reputation as a responsible employer and ensuring that good channels of communication exist throughout the business. Employees are incentivised with competitive remuneration and regular appraisals setting clear goals. The directors believe that the Employee Share Plan also provides a good motivation to employees.
Employees receive regular reports from the Chief Executive Officer and Divisional Directors on operational staff matters. Staff turnover is regarded as a key performance indicator, which is monitored monthly. Annual salary reviews are supplemented by regular benchmarking exercises.
The non-executive directors’ experience and other business interests ensure that they have a very clear idea of best practice in the way that the Company treats its staff.
Customers & Suppliers 
The Company engages with suppliers on pre-agreed terms appropriate to the market, and it pays supplier invoices promptly. Building strong and enduring relationships with customers is a key strategic intention of the Company, and this is measured and reviewed on a regular basis. 
Compliance
T. H. WHITE Ltd, a subsidiary of T. H. WHITE Holdings Ltd, is authorised and regulated by the FCA for credit broking services. The Group is conscious of its responsibility to regulators and has the appropriate management functions in place to oversee this activity.
The Group complies with several quality management and safety management systems. Independent auditors are regularly engaged to support the Group in compliance matters.
 
Page 3


T. H. WHITE LIMITED


STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Community and the Environment
The communities in which the Company operates are a key aspect of its continued success. The Company has a policy of supporting local events, clubs and societies. Community engagement by employees is encouraged and a number of staff are actively engaged with projects within their own communities. The Company has a charitable giving programme, which supports a wide variety of projects in the UK, often linked to employee, customers or suppliers’ own activities.
T. H. WHITE Ltd aims to minimise its environmental impact and continually works towards reducing its carbon footprint.  The Group engages with the Environmental, Social and Governance (ESG) aspects of companies with which it is associated with. Investing in technology that helps reduce the impact on the wider environment is an ongoing programme and the Company regularly looks at ways to innovate its practices, reporting on these activities at Board level.


This report was approved by the board and signed on its behalf.



A D Scott, M.Eng., M.I.E.T.
Director

Date: 5 July 2024

Page 4


T. H. WHITE LIMITED

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £540,106 (2022: £1,694,123).

During the year dividends of £1,300,000 were declared and paid (2022: £1,200,000).

DIRECTORS

The directors who served during the year were:

A D Scott, M.Eng., M.I.E.T. 
M I Edwards, F.C.A. (resigned 31 March 2024)
A P Johnson (resigned 31 December 2023)
A Lovegrove (appointed 3 January 2023)

FUTURE DEVELOPMENTS

The Company continues to seek opportunities to develop or enhance its range of services and geographical presence.

Page 5


T. H. WHITE LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
ENGAGEMENT WITH EMPLOYEES

Employee Involvement
The Company ensures there is active employee participation within the businesses. During the year, the policy of providing employees with information, including that relating to the economic and financial factors affecting the performance of the Company, has been continued. Regular meetings are held between company and local management with employees to allow a free flow of information and ideas. Employees participate directly in the success of the business through the group profit sharing schemes and the employee share incentive scheme and share incentive plan.

Disabled employees
Applications for employment by disabled persons are always considered fully, having taken into account the specific role and aptitude of the applicant concerned. In the event that employees become disabled during their employment every effort is made to facilitate their role within the business. The Company policy is that training, career development and promotion will be equally available to all employees regardless of disability.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

Business Relationships
Building and maintaining strong business relationships with key stakeholders, including customers and suppliers,
is a key part of the Company's' continued success. Key franchise partners are engaged with regular meetings
and sharing of key information.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

POST BALANCE SHEET EVENTS

There have been no significant events affecting the Company since the year end.

AUDITORS

The auditorsBishop Fleming LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 






A D Scott, M.Eng., M.I.E.T.
Director

Date: 5 July 2024

Nursteed Road
Devizes
Wiltshire
SN10 3EA

Page 6


T. H. WHITE LIMITED

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF T. H. WHITE LIMITED
OPINION


We have audited the financial statements of T. H. WHITE LIMITED (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


CONCLUSIONS RELATING TO GOING CONCERN


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


OTHER INFORMATION


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


We have nothing to report in this regard.


Page 7


T. H. WHITE LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF T. H. WHITE LIMITED (CONTINUED)

OPINION 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


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 Directors' report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


RESPONSIBILITIES OF DIRECTORS
 

As explained more fully in the Directors' responsibilities statement set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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.


Page 8


T. H. WHITE LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF T. H. WHITE LIMITED (CONTINUED)

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 an Auditors' 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:
The nature of the industry and sector, control environment and business performance;
Results of our enquires of management and directors in relation to their own identification and assessment of the risks of irregularities within the Company; and
any matters we identified having obtained and reviewed the Company’s documentation of their policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; the internal controls established to mitigate risks of fraud or noncompliance with laws and regulations.

As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest areas of risk to be in relation to revenue recognition. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.
We have also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures within the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and UK tax legislation. In addition we considered provision of other laws and regulations that do not have a direct effect on the financial statements but compliance with may be fundamental for the Company’s ability to operate or avoid a material penalty. These included health and safety regulations, employment legislation and data protection laws.

Our audit procedures performed to respond to the risks identified included, but were not limited to:
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
Reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue;
Challenging assumptions and judgments made by management in their significant accounting estimates;
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
Reviewing board minutes; and
Identifying and testing journal entries, evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
 
Page 9


T. H. WHITE LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF T. H. WHITE LIMITED (CONTINUED)

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.


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 Auditors' report.


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 2006Our 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 Auditors' 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.






Simon Morrison FCA (Senior statutory auditor)
for and on behalf of
Bishop Fleming LLP
Chartered Accountants
Statutory Auditors
10 Temple Back
Bristol
BS1 6FL

12 July 2024
Page 10


T. H. WHITE LIMITED

 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
147,822,972
142,363,260

Cost of sales
  
(120,053,689)
(116,273,655)

GROSS PROFIT
  
27,769,283
26,089,605

Administrative expenses
  
(26,267,564)
(23,846,200)

OPERATING PROFIT
 5 
1,501,719
2,243,405

Interest receivable and similar income
 9 
105,179
81,145

Interest payable and similar expenses
 10 
(796,894)
(233,360)

Fair value (losses) and gains on foreign exchange contracts
  
-
148,007

PROFIT BEFORE TAX
  
810,004
2,239,197

Tax on profit
 11 
(269,898)
(545,074)

PROFIT FOR THE FINANCIAL YEAR
  
540,106
1,694,123

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 14 to 29 form part of these financial statements.

Page 11


T. H. WHITE LIMITED
REGISTERED NUMBER:00519868

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

FIXED ASSETS
  

Intangible assets
 13 
119,934
70,601

Tangible assets
 14 
4,259,763
3,970,578

  
4,379,697
4,041,179

CURRENT ASSETS
  

Stocks
 15 
48,201,600
38,622,852

Debtors: amounts falling due within one year
 16 
20,541,726
20,190,495

Cash at bank and in hand
 17 
353,437
724,308

  
69,096,763
59,537,655

Creditors: amounts falling due within one year
 18 
(55,895,734)
(45,573,576)

NET CURRENT ASSETS
  
 
 
13,201,029
 
 
13,964,079

TOTAL ASSETS LESS CURRENT LIABILITIES
  
17,580,726
18,005,258

Creditors: amounts falling due after more than one year
 19 
(666,532)
(508,434)

PROVISIONS FOR LIABILITIES
  

Deferred tax
 22 
(633,938)
(456,674)

  
 
 
(633,938)
 
 
(456,674)

NET ASSETS
  
16,280,256
17,040,150


CAPITAL AND RESERVES
  

Called up share capital 
 23 
403,000
403,000

Profit and loss account
  
15,877,256
16,637,150

  
16,280,256
17,040,150


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





A D Scott, M.Eng., M.I.E.T.
Director

Date: 5 July 2024

The notes on pages 14 to 29 form part of these financial statements.

Page 12


T. H. WHITE LIMITED


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
403,000
16,143,027
16,546,027



Profit for the year
-
1,694,123
1,694,123

Dividends: Equity capital
-
(1,200,000)
(1,200,000)



At 1 January 2023
403,000
16,637,150
17,040,150



Profit for the year
-
540,106
540,106

Dividends: Equity capital
-
(1,300,000)
(1,300,000)


AT 31 DECEMBER 2023
403,000
15,877,256
16,280,256


The notes on pages 14 to 29 form part of these financial statements.

Page 13


T. H. WHITE LIMITED

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

1.


GENERAL INFORMATION

T. H. White Limited is a limited company incorporated in England and Wales. The registered office and principal place of business is Nursteed Road, Devizes, Wiltshire, SN10 3EA.

2.ACCOUNTING POLICIES

 
2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of T.H. White Holdings Limited as at 31 December 2023 and these financial statements may be obtained from Companies House.

 
2.3

GOING CONCERN

These accounts have been prepared on a going concern basis which the directors believe to be appropriate. As in previous years the Directors remain focused on liquidity management, through diligent cash controls, cash flow forecasting and working with the Operational Divisions to ensure the Return on Capital Employed Objectives (ROCE) are met. We have remained within the facility provided by the Bank following on from the move to HSBC in the previous financial year. 
The supply chain issues faced in the previous years have lessened, however the unwinding of this has impacted the high levels of stock being held at the end of the year. Further measures and controls have been put into place for 2024 to manage this going forward and current forecasts show this will reduce to a more normal level during the year and in turn normalise our Working Capital. 
Therefore, the Directors continue to adopt the going concern basis whilst preparing the annual reports and accounts for the financial year ending 31st December 2023. 

Page 14


T. H. WHITE LIMITED

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

2.ACCOUNTING POLICIES (continued)

  
2.4

REVENUE

Turnover is stated net of Value Added Tax and trade discounts. Turnover from the sale of goods is recognised when risk and reward of ownership have passed to the customer. Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the value of the consideration due. Where a contract has only been partially completed at the balance sheet date turnover represents the value of the service provided to date based on a proportion of the total contract value. Where payments are received from customers in advance of services provided the amounts are recorded as deferred income and included as part of creditors.

In respect of maintenance contracts, where there is a high degree of estimation uncertainty, revenue is only recognised during the contract to the extent that costs are considered recoverable. Any remaining revenue is recognised upon completion of the contract or when the outcome is highly probable. If these contracts become loss making then the loss is immediately recognised in the Statement of Comprehensive Income.

 
2.5

OTHER INCOME

Finance commissions are recognised on an earned basis. Interest income is accrued on a time-apportioned basis by reference to the principal outstanding at the effective interest rate. Other interest is recognised on an earned basis.

 
2.6

FOREIGN CURRENCY TRANSLATION

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 15


T. H. WHITE LIMITED

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

2.ACCOUNTING POLICIES (continued)

 
2.7

LEASES

Assets leased out under operating leases included in plant and machinery are depreciated over their estimated useful lives. Rental income, including the effect of lease incentives, is recognised on a straight-line basis over the lease term. from operating leases is credited to profit or loss on a straight line basis over the lease term.
Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

 
2.8

LEASED ASSETS: THE COMPANY AS LESSEE

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.9

GOVERNMENT GRANTS

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

 
2.10

FINANCE COSTS

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.11

BORROWING COSTS

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.12

PENSIONS

DEFINED CONTRIBUTION PENSION PLAN

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Page 16


T. H. WHITE LIMITED

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

2.ACCOUNTING POLICIES (continued)

  
2.13

SHARE INCENTIVE PLAN

Employees participate in the T. H White Share Incentive Plan ('the Plan') which replaced the earlier Share Incentive Scheme. A percentage of group profits is set aside each year for allocation to employees in the following summer, either as T. H. White Holdings Limited's shares held by the plan or as an extra payroll payment. All employees participate in the Plan after an initial qualifying service period in accordance with HMRC rules. 

 
2.14

CURRENT AND DEFERRED TAXATION

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

  
2.15

INTANGIBLE FIXED ASSETS - GOODWILL

Goodwill is capitalised and written off over a period not longer than 10 years. The directors use their judgement to decide on a basis which best represents the time over which economic benefit will arise.

 
2.16

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model 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.

Page 17


T. H. WHITE LIMITED

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

2.ACCOUNTING POLICIES (continued)


2.16
TANGIBLE FIXED ASSETS (CONTINUED)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on various bases.

Depreciation is provided on the following basis:

Plant and machinery
-
10-33% straight line
Motor vehicles
-
30-35% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.17

STOCKS

Stocks are stated at the lower of cost and net realisable value. Work in progress and finished goods are stated at the direct cost of parts, materials and labour. Consignment stocks are accounted for by inclusion in stock and the associated liability within creditors.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

 
2.18

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.19

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.20

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.21

PROVISIONS FOR LIABILITIES

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.


Page 18


T. H. WHITE LIMITED

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

2.ACCOUNTING POLICIES (continued)

 
2.22

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an 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.

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

 
2.23

DIVIDENDS

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 19


T. H. WHITE LIMITED

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

3.



JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

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

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

Service contracts
There is a high-degree of estimation uncertainty relating to service maintenance contracts where the Group is required to maintain machinery for a fixed period at a pre-determined price. There is a significant range in the profitability of these contracts, which depends on the performance of each machine and management have determined that it is not possible to accurately forecast the work required in completing each contract. As a result of this revenue is only recognised to the extent that costs are recoverable with the remainder on completion of the contract.

Useful economic lives of tangible assets
The annual depreciation charge is sensitive to any changes in the estimated useful life and residual value of tangible assets. The useful economic lives and residual value are assessed on an annual basis and amended only when evidence shows a change in the estimated economic lives or residual life. Criteria used to assess the economic life and residual value includes technological advancement, economic utilisation, physical condition of the assets and future investment.

Impairment of stocks
The group’s products are subject to changing market demand. It is therefore necessary to consider on a periodic basis the recoverability of the cost of stocks and the associated impairment. Management calculates impairments by considering the nature and condition of the stocks and applies assumptions around anticipated saleability of finished goods and future usage of raw materials, overheads and labour.


4.


TURNOVER

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Non-contract income
147,804,925
142,361,031

Revenue from contracts
18,047
2,229

147,822,972
142,363,260


All turnover arose within the United Kingdom.

Page 20


T. H. WHITE LIMITED

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

5.


OPERATING PROFIT

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
1,409,112
1,323,403

Amortisation of intangible fixed assets
30,667
566,667

(Profit)/Loss on disposal of fixed assets
(137,015)
(147,653)

Exchange differences
(1,018,095)
(2,056,597)

Other operating lease rentals
52,200
78,273

(2,542,689)
(4,016,047)


6.


AUDITORS' REMUNERATION

2023
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
24,500
24,500
The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


7.


EMPLOYEES

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
20,873,047
19,451,488

Social security costs
2,052,861
2,030,740

Cost of defined contribution scheme
1,530,894
1,413,311

24,456,802
22,895,539


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Operations
443
418



Administrative
76
72

519
490

Page 21


T. H. WHITE LIMITED

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

8.


DIRECTORS' REMUNERATION

2023
2022
£
£

Directors' emoluments
598,693
670,346

Company contributions to defined contribution pension schemes
68,919
72,227

667,612
742,573


During the year retirement benefits were accruing to 4 directors (2022: 4) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £167,567 (2022: £168,809).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £24,082 (2022: £22,826).


9.


INTEREST RECEIVABLE

2023
2022
£
£


Other interest receivable
105,179
81,145

105,179
81,145


10.


INTEREST PAYABLE AND SIMILAR EXPENSES

2023
2022
£
£


Bank interest payable
558,830
216,866

Other loan interest payable
238,064
16,494

796,894
233,360

Page 22


T. H. WHITE LIMITED

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

11.


TAXATION


2023
2022
£
£

CORPORATION TAX


Current tax on profits for the year
67,447
312,832

Adjustments in respect of previous periods
25,187
26,999


92,634
339,831


TOTAL CURRENT TAX
92,634
339,831

DEFERRED TAX


Origination and reversal of timing differences
177,264
205,243

TOTAL DEFERRED TAX
177,264
205,243


TAXATION ON PROFIT ON ORDINARY ACTIVITIES
269,898
545,074

FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is higher than (2022: the same as) the standard rate of corporation tax in the UK of19% (2022: 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
810,004
2,239,197


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022: 19%)
190,517
425,447

EFFECTS OF:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
18,354
31,384

Capital allowances for year in excess of depreciation
25,725
14,241

Adjustments to tax charge in respect of prior periods
25,188
26,999

Other timing differences leading to an increase (decrease) in taxation
(376)
(410)

Deferred tax adjustments in respect of prior years
-
53,441

Remeasurement of deferred tax for changes in tax rates
10,490
36,432

Movement in deferred tax not recognised
-
(42,460)

TOTAL TAX CHARGE FOR THE YEAR
269,898
545,074



Page 23


T. H. WHITE LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.TAXATION (CONTINUED)


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.




12.


DIVIDENDS

2023
2022
£
£


Dividends paid
1,300,000
1,200,000

1,300,000
1,200,000


13.


INTANGIBLE ASSETS




Goodwill

£



COST


At 1 January 2023
2,349,998


Additions
80,000



At 31 December 2023

2,429,998



AMORTISATION


At 1 January 2023
2,279,397


Charge for the year on owned assets
30,667



At 31 December 2023

2,310,064



NET BOOK VALUE



At 31 December 2023
119,934



At 31 December 2022
70,601



Page 24


T. H. WHITE LIMITED

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

14.


TANGIBLE FIXED ASSETS





Plant and machinery
Motor vehicles
Total

£
£
£



COST OR VALUATION


At 1 January 2023
6,054,888
5,656,307
11,711,195


Additions
615,350
1,153,727
1,769,077


Disposals
(271,417)
(759,262)
(1,030,679)



At 31 December 2023

6,398,821
6,050,772
12,449,593



DEPRECIATION


At 1 January 2023
4,712,023
3,028,594
7,740,617


Charge for the year on owned assets
538,798
870,314
1,409,112


Disposals
(266,313)
(693,586)
(959,899)



At 31 December 2023

4,984,508
3,205,322
8,189,830



NET BOOK VALUE



At 31 December 2023
1,414,313
2,845,450
4,259,763



At 31 December 2022
1,342,865
2,627,713
3,970,578


15.


STOCKS

2023
2022
£
£

Parts and sundries
4,046,849
5,651,532

Work in progress
713,410
1,328,753

New and used machinery
43,441,341
31,642,567

48,201,600
38,622,852


Page 25


T. H. WHITE LIMITED

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

16.


DEBTORS

2023
2022
£
£


Trade debtors
16,719,200
18,545,108

Amounts owed by group undertakings
3,228,923
1,055,587

Other debtors
94,196
37,846

Prepayments and accrued income
349,070
256,460

Payments in advance to suppliers
150,337
227,135

Derivative financial instruments
-
68,359

20,541,726
20,190,495


Derivative financial instruments reflect the fair value of forward foreign currency contracts which the group enters to mitigate currency exposure. The contract value of these arrangements at the end of the year was €4,500,000 (2022: €2,100,000).


17.


CASH AND CASH EQUIVALENTS

2023
2022
£
£

Cash at bank and in hand
353,437
724,308

Less: bank overdraft including finance payable within one year
(17,296,476)
(8,046,148)

(16,943,039)
(7,321,840)

Page 26


T. H. WHITE LIMITED

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

18.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023
2022
£
£

Bank overdraft including finance payable within one year
17,296,476
8,046,148

Trade creditors
12,149,196
10,032,999

Amounts owed to group undertakings
13,717,748
13,907,933

Corporation tax
-
113,052

Other taxation and social security
3,125,462
2,489,440

Obligations under finance lease and hire purchase contracts
398,256
250,013

Other creditors
199,361
176,401

Accruals and deferred income
8,992,822
10,557,590

Derivative financial instruments
16,413
-

55,895,734
45,573,576


The bank overdraft is secured by a charge over certain of the Group's freehold properties, is repayable on demand and interest is charged on commercial terms.
Finance payable within bank overdraft is related to short term stocking finance taken out in the year.
Derivative financial instruments reflect the fair value of forward foreign currency contracts which the group enters to mitigate currency exposure. The contract value of these arrangements at the end of the year was €4,500,000 (2022: €2,100,000).


19.


CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
666,532
508,434

666,532
508,434



20.


HIRE PURCHASE AND FINANCE LEASES


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
398,256
250,013

Between 1-5 years
666,532
508,434

1,064,788
758,447

Net obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.

Page 27


T. H. WHITE LIMITED

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

21.


FINANCIAL INSTRUMENTS

2023
2022
£
£

FINANCIAL ASSETS


Derivative financial instruments measured at fair value through profit or loss
-
68,359


FINANCIAL LIABILITIES


Derivative financial instruments measured at fair value through profit or loss
(16,413)
-


Derivative financial instruments measured at fair value through profit or loss comprise forward foreign exchange contracts.


22.


DEFERRED TAXATION




2023
2022


£

£






At beginning of year
(456,674)
(251,431)


Charged to profit or loss
(177,264)
(205,243)



AT END OF YEAR
(633,938)
(456,674)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(664,136)
(499,385)

Short-term timing differences
30,198
42,711

(633,938)
(456,674)


23.


SHARE CAPITAL

2023
2022
£
£
ALLOTTED, CALLED UP AND FULLY PAID



403,000 (2022: 403,000) Ordinary Shares shares of £1.00 each
403,000
403,000


Page 28


T. H. WHITE LIMITED

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

24.


FINANCIAL COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES

The Company, together with its parent undertaking and fellow subsidiary undertakings, has entered into a cross-guarantee and debenture over all assets arrangement in favour of HSBC UK Bank plc to support the borrowings of the group. At the end of the year, the Company had a contingent liability of £4,308,916 (2022: £4,470,162). 

The company has exposure to repurchase goods sold to customers up to £1,250,614 (2022: £891,599). The directors consider that the liability under the buy-back arrangements does not exceed the value of the goods that may be repurchased.


25.


PENSION COMMITMENTS

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £1,530,894 (2022: £1,413,311) . Contributions totaling £194,138 (2022: £170,845) were payable to the fund at the reporting date and are included in creditors.


26.


RELATED PARTY TRANSACTIONS

The Company has taken advantage of the exemption under Section 33 of FRS 102 and has not disclosed details of transactions or balances with other wholly owned entities in the group headed by T. H. White Holdings Limited.
The remuneration of key management personnel, who are the directors of the Company is detailed in Note 9.


2023
2022
£
£

Products sold to directors
9,213
9,843
Balance outstanding at year end
531
129


27.


CONTROLLING PARTY

The immediate and ultimate parent company is T. H. White Holdings Limited, a company incorporated in the United Kingdom and registered in England and Wales. T. H. White Holdings Limited heads the largest and smallest group in which the results of the company are consolidated. The consolidated financial statements of T. H. White Holdings Limited are available from the registrar at Companies House. In the opinion of the directors there is no individual overall controlling party.

 
Page 29