COMPANY REGISTRATION NUMBER 541251 (ENGLAND AND WALES)
I. GRUNWERG LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
I. GRUNWERG LIMITED
COMPANY INFORMATION
Directors
Mr B J Grunwerg
Ms A E Grunwerg
Mr A R Grunwerg
Mr T Basford
Mr A J Beattie
Company number
541251
Registered office
Silversteel Manor
Carrwood Road
Chesterfield
S41 9QB
Auditor
UHY Hacker Young
6 Broadfield Court
Broadfield Way
Sheffield
S8 0XF
I. GRUNWERG LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12 - 13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
I. GRUNWERG LIMITED
CONTENTS
Notes to the financial statements
17 - 38
I. GRUNWERG LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

Our 2023 accounts reflect a continued challenging year in the industry. In general, the industry has experienced steadily worsening trading conditions owing to repeated interest rate rises dampening consumer demand. We have however maintained our sales line and delivered a strong end to the calendar year.

To offset the wider market challenges, we have continued to focus on delivering great products and service for our customer base, as well as consolidating and enhancing our product portfolio into key areas. This plan will continue into 2024 and beyond with a focus on detailed marketing strategies for our brands.

The company is proud to maintain good levels of investment into our stock holding which we see as providing us with a position of strength in the marketplace and allows us opportunities to ensure continued delivery and service for our customers. Significantly fluctuating foreign exchange markets and impacts to global supply chains have affected all in our industry who source stock from the Far East.

Continued focus on operational efficiencies and cost reductions have continued, alongside an effort to reduce the company’s environmental impact. Our warehouse operations now benefit from solar generation, and a fully electric MHE fleet. We work with distribution and supply chain partners that offset their CO2 emissions, and have launched new ranges of products made using recycled content.

The company’s trading activities remained unchanged, and we will continue to monitor the market to identify opportunities.

Principal risks and uncertainties

The company is subjected to risks and uncertainties from buying goods from Asia and importing into the United Kingdom.

We remain exposed to exchange rate uncertainty, particularly to the Yen and Dollar. We also bear the cost of shipping, along with extended factory lead times which put pressure on our financial resources.

Key performance indicators

To ensure the continued success of the business and to deliver the short and long term goals, the directors use a number of KPIs to aid decision making and highlight areas of improvement. The KPIs align with the strategic objectives of growing turnover from a pre-Covid baseline, and reducing the company's debt levels.

KPI targets:

On behalf of the board

Mr B J Grunwerg
Director
16 September 2024
I. GRUNWERG LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -

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

Principal activities

There has been no significant change during the year in the group’s and company's principal activities. These comprise the import and distribution of cutlery, holloware and housewares to home and export markets.

Results and dividends

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

Ordinary dividends were paid amounting to £110,499. The directors do not recommend payment of a further dividend.

Directors

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

Mr B J Grunwerg
Ms A E Grunwerg
Mr A R Grunwerg
Mr T Basford
Mr A J Beattie
Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of disclosure to auditor

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

On behalf of the board
Mr B J Grunwerg
Director
16 September 2024
I. GRUNWERG LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

I. GRUNWERG LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF I. GRUNWERG LIMITED
- 4 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

I. GRUNWERG LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF I. GRUNWERG LIMITED
- 5 -

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

I. GRUNWERG LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF I. GRUNWERG LIMITED
- 6 -
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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.

 

Based on our understanding of the company and the industry in which it operates, we identified the principal risks of non-compliance with laws and regulations related to the acts by the company, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to revenue, trade receivables and stock valuation.

 

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

 

There are inherent limitations in the audit procedures described above 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. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

I. GRUNWERG LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF I. GRUNWERG LIMITED
- 7 -
Andrew Hulse (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
16 September 2024
Chartered Accountants
Statutory Auditor
6 Broadfield Court
Broadfield Way
Sheffield
S8 0XF
I. GRUNWERG LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 8 -
Period
Year
ended
ended
31 December
30 April
2023
2023
Notes
£
£
Turnover
3
6,987,140
10,396,717
Cost of sales
(3,900,932)
(5,406,686)
Gross profit
3,086,208
4,990,031
Distribution costs
(1,330,727)
(1,618,092)
Administrative expenses
(1,034,942)
(1,946,382)
Other operating income
9,750
6,000
Operating profit
4
730,289
1,431,557
Interest receivable and similar income
8
349
583
Interest payable and similar expenses
9
(218,848)
(195,038)
Profit before taxation
511,790
1,237,102
Tax on profit
10
(158,281)
(225,181)
Profit for the financial period
353,509
1,011,921
Profit for the financial period is all attributable to the owners of the parent company.
I. GRUNWERG LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 9 -
Period
Year
ended
ended
31 December
30 April
2023
2023
£
£
Profit for the period
353,509
1,011,921
Other comprehensive income
-
-
Total comprehensive income for the period
353,509
1,011,921
Total comprehensive income for the period is all attributable to the owners of the parent company.
I. GRUNWERG LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
31 December 2023
30 April 2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
71,793
64,512
Tangible assets
13
809,547
833,475
881,340
897,987
Current assets
Stocks
17
9,870,353
11,165,253
Debtors
18
2,415,867
1,665,970
Cash at bank and in hand
768,279
453,496
13,054,499
13,284,719
Creditors: amounts falling due within one year
19
(2,097,624)
(3,353,577)
Net current assets
10,956,875
9,931,142
Total assets less current liabilities
11,838,215
10,829,129
Creditors: amounts falling due after more than one year
20
(3,120,329)
(2,369,013)
Provisions for liabilities
Deferred tax liability
22
97,600
82,840
(97,600)
(82,840)
Net assets
8,620,286
8,377,276
Capital and reserves
Called up share capital
25
2,107
2,107
Share premium account
3,001
3,001
Capital redemption reserve
6,897
6,897
Profit and loss reserves
8,608,281
8,365,271
Total equity
8,620,286
8,377,276
I. GRUNWERG LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 16 September 2024 and are signed on its behalf by:
16 September 2024
Mr B J Grunwerg
Director
Company registration number 541251 (England and Wales)
I. GRUNWERG LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
31 December 2023
30 April 2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
41,463
34,182
Tangible assets
13
802,987
822,132
Investments
14
60,700
60,700
905,150
917,014
Current assets
Stocks
17
9,870,353
11,165,253
Debtors
18
2,416,707
1,666,320
Cash at bank and in hand
593,316
366,786
12,880,376
13,198,359
Creditors: amounts falling due within one year
19
(1,986,232)
(3,293,196)
Net current assets
10,894,144
9,905,163
Total assets less current liabilities
11,799,294
10,822,177
Creditors: amounts falling due after more than one year
20
(3,120,329)
(2,369,013)
Provisions for liabilities
Deferred tax liability
22
96,000
80,000
(96,000)
(80,000)
Net assets
8,582,965
8,373,164
Capital and reserves
Called up share capital
25
2,107
2,107
Share premium account
3,001
3,001
Capital redemption reserve
6,897
6,897
Profit and loss reserves
8,570,960
8,361,159
Total equity
8,582,965
8,373,164

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £320,300 (30 April 2023 - £998,298).

I. GRUNWERG LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 13 -
The financial statements were approved by the board of directors and authorised for issue on 16 September 2024 and are signed on its behalf by:
16 September 2024
Mr B J Grunwerg
Director
Company registration number 541251 (England and Wales)
I. GRUNWERG LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 14 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 May 2022
4,501
3,001
4,503
11,903,062
11,915,067
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
-
1,011,921
1,011,921
Dividends
11
-
-
-
(49,712)
(49,712)
Redemption of shares
25
(2,394)
-
2,394
(4,500,000)
(4,500,000)
Balance at 30 April 2023
2,107
3,001
6,897
8,365,271
8,377,276
Period ended 31 December 2023:
Profit and total comprehensive income
-
-
-
353,509
353,509
Dividends
11
-
-
-
(110,499)
(110,499)
Balance at 31 December 2023
2,107
3,001
6,897
8,608,281
8,620,286
I. GRUNWERG LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 15 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 May 2022
4,501
3,001
4,503
11,912,573
11,924,578
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
-
-
998,298
998,298
Dividends
11
-
-
-
(49,712)
(49,712)
Redemption of shares
25
(2,394)
-
2,394
(4,500,000)
(4,500,000)
Balance at 30 April 2023
2,107
3,001
6,897
8,361,159
8,373,164
Period ended 31 December 2023:
Profit and total comprehensive income
-
-
-
320,300
320,300
Dividends
11
-
-
-
(110,499)
(110,499)
Balance at 31 December 2023
2,107
3,001
6,897
8,570,960
8,582,965
I. GRUNWERG LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 16 -
2023
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
1,360,932
2,305,840
Interest paid
(218,848)
(195,038)
Income taxes paid
(206,260)
(374,252)
Net cash inflow from operating activities
935,824
1,736,550
Investing activities
Purchase of intangible assets
-
(31,463)
Proceeds from disposal of intangibles
(7,281)
26,404
Purchase of tangible fixed assets
(128,708)
(193,249)
Proceeds from disposal of tangible fixed assets
30,083
7,917
Repayment of loans
4,267
-
Interest received
349
583
Net cash used in investing activities
(101,290)
(189,808)
Financing activities
Redemption of shares
2,394
(4,502,394)
Repayment of borrowings
972,156
106,146
Receipt of bank loans
(1,381,407)
2,992,505
Dividends paid to equity shareholders
(110,499)
(49,712)
Net cash used in financing activities
(517,356)
(1,453,455)
Net increase in cash and cash equivalents
317,178
93,287
Cash and cash equivalents at beginning of period
453,496
3,951,435
Cash and cash equivalents at end of period
768,279
453,496
I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 17 -
1
Accounting policies
Company information

I. Grunwerg Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Silversteel Manor, Carrwood Road, Chesterfield, S41 9QB.

 

The group consists of I. Grunwerg Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.2
Business combinations

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

 

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

1.3
Basis of consolidation

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

 

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

 

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

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

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

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

1.5
Turnover

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

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets other than goodwill

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

 

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

Intangible assets comprise a lease premium paid in advance for a lease over land used by the company and intellectual property written over the expected useful life.

I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -

Goodwill represents the excess of the cost of acquisition of unincorporated business over the fair value of the assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

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

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Leasehold improvements
10% Straight line
Equipment and fixtures
25% Straight line / 25% Reducing balance
Motor vehicles
25% Reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

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

 

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

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

I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

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

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

 

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

I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -

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

1.10
Stocks

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

 

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

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

1.12
Financial instruments

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

 

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

 

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

Basic financial assets

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

I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 24 -
Other financial liabilities

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

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

 

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

I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 25 -
1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

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

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.18
Government grants

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

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

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

 

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

I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 26 -
3
Turnover and other revenue
2023
2023
£
£
Turnover analysed by class of business
Sale of goods
6,987,140
10,396,717
2023
2023
£
£
Turnover analysed by geographical market
United Kingdom
5,849,545
8,685,338
European Union and Rest Of The World
1,137,595
1,711,379
6,987,140
10,396,717
2023
2023
£
£
Other revenue
Interest income
349
583
Grants received
4,028
-
4
Operating profit
2023
2023
£
£
Operating profit for the period is stated after charging/(crediting):
Exchange (gains)/losses
(10,204)
4,800
Government grants
(4,028)
-
Depreciation of owned tangible fixed assets
129,876
202,064
(Profit)/loss on disposal of tangible fixed assets
(7,323)
55,880
Amortisation of intangible assets
-
3,317
Operating lease charges
179,083
222,749
5
Auditor's remuneration
2023
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
9,800
9,300
Audit of the financial statements of the company's subsidiaries
3,852
(1,025)
13,652
8,275
I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
5
Auditor's remuneration
(Continued)
- 27 -
For other services
Taxation compliance services
2,300
2,200
All other non-audit services
12,023
17,877
14,323
20,077
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the period was:

Group
Company
2023
2023
2023
2023
Number
Number
Number
Number
Production and sales
23
28
23
28
Office and administration
19
19
19
19
Total
42
47
42
47

Their aggregate remuneration comprised:

Group
Company
2023
2023
2023
2023
£
£
£
£
Wages and salaries
731,564
1,355,959
731,564
1,355,959
Social security costs
69,635
147,618
69,635
147,618
Pension costs
29,528
38,437
29,528
38,437
830,727
1,542,014
830,727
1,542,014
7
Directors' remuneration
2023
2023
£
£
Remuneration for qualifying services
127,414
209,139
Company pension contributions to defined contribution schemes
15,822
16,599
143,236
225,738
I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
7
Directors' remuneration
(Continued)
- 28 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2023
£
£
Remuneration for qualifying services
n/a
100,000
8
Interest receivable and similar income
2023
2023
£
£
Interest income
Interest on bank deposits
242
583
Other interest income
107
-
Total income
349
583
2023
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
242
583
9
Interest payable and similar expenses
2023
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
213,856
195,038
Other finance costs:
Other interest
4,992
-
Total finance costs
218,848
195,038
I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 29 -
10
Taxation
2023
2023
£
£
Current tax
UK corporation tax on profits for the current period
134,511
226,547
Adjustments in respect of prior periods
9,010
(1,049)
Total current tax
143,521
225,498
Deferred tax
Origination and reversal of timing differences
14,760
(317)
Total tax charge
158,281
225,181

The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

2023
2023
£
£
Profit before taxation
511,790
1,237,102
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
127,948
241,111
Tax effect of expenses that are not deductible in determining taxable profit
(19,113)
1,620
Tax effect of income not taxable in determining taxable profit
22,213
-
0
Under/(over) provided in prior years
9,010
-
0
Other differences
(234)
(6,052)
Capital allowances in excess of depreciation
-
0
(11,498)
Deferred tax debit/(credit)
14,760
-
0
Trading losses carried forward
3,697
-
Taxation charge
158,281
225,181
11
Dividends
2023
2023
Recognised as distributions to equity holders:
£
£
Interim paid
110,499
49,712
I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 30 -
12
Intangible fixed assets
Group
Goodwill, Intellectual property and Lease premium
Website development
Total
£
£
£
Cost
At 1 May 2023
75,400
31,463
106,863
Disposals
(16,836)
-
0
(16,836)
At 31 December 2023
58,564
31,463
90,027
Amortisation and impairment
At 1 May 2023
42,351
-
0
42,351
Disposals
(24,117)
-
0
(24,117)
At 31 December 2023
18,234
-
0
18,234
Carrying amount
At 31 December 2023
40,330
31,463
71,793
At 30 April 2023
33,049
31,463
64,512
Company
Goodwill, Intellectual property and Lease premium
Website development
Total
£
£
£
Cost
At 1 May 2023
26,836
31,463
58,299
Disposals
(16,836)
-
0
(16,836)
At 31 December 2023
10,000
31,463
41,463
Amortisation and impairment
At 1 May 2023
24,117
-
0
24,117
Disposals
(24,117)
-
0
(24,117)
At 31 December 2023
-
0
-
0
-
0
Carrying amount
At 31 December 2023
10,000
31,463
41,463
At 30 April 2023
2,719
31,463
34,182
I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 31 -
13
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Equipment and fixtures
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 May 2023
539,797
1,100
1,102,105
13,266
140,528
1,796,796
Additions
-
0
-
0
128,708
-
0
-
0
128,708
Disposals
-
0
-
0
(47,737)
-
0
(36,284)
(84,021)
At 31 December 2023
539,797
1,100
1,183,076
13,266
104,244
1,841,483
Depreciation and impairment
At 1 May 2023
210,787
584
665,421
8,445
78,084
963,321
Depreciation charged in the period
35,986
116
81,956
3,316
8,502
129,876
Eliminated in respect of disposals
-
0
-
0
(43,442)
-
0
(17,819)
(61,261)
At 31 December 2023
246,773
700
703,935
11,761
68,767
1,031,936
Carrying amount
At 31 December 2023
293,024
400
479,141
1,505
35,477
809,547
At 30 April 2023
329,010
516
436,684
4,821
62,444
833,475
I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 32 -
Company
Leasehold improvements
Equipment and fixtures
Motor vehicles
Total
£
£
£
£
Cost
At 1 May 2023
539,797
1,091,241
140,528
1,771,566
Additions
-
0
128,708
-
0
128,708
Disposals
-
0
(47,737)
(36,284)
(84,021)
At 31 December 2023
539,797
1,172,212
104,244
1,816,253
Depreciation and impairment
At 1 May 2023
210,787
660,563
78,084
949,434
Depreciation charged in the period
35,986
80,605
8,502
125,093
Eliminated in respect of disposals
-
0
(43,442)
(17,819)
(61,261)
At 31 December 2023
246,773
697,726
68,767
1,013,266
Carrying amount
At 31 December 2023
293,024
474,486
35,477
802,987
At 30 April 2023
329,010
430,678
62,444
822,132
14
Fixed asset investments
Group
Company
2023
2023
2023
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
60,700
60,700
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2023 and 31 December 2023
60,700
Carrying amount
At 31 December 2023
60,700
At 30 April 2023
60,700
I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 33 -
15
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Knives from Japan Ltd
Carwood Industrial Park, Carwood, Chesterfield, S41 9QB
Ordinary
100.00
IGL Commerce Ltd
Carwood Industrial Park, Carwood, Chesterfield, S41 9QB
Ordinary
100.00
I Grunwerg EU Limited
FDW House, Dundalk, Co. Louth, A91 RW26
Ordinary
100.00
I Grunwerg Corporation
33 Bloomfield Hills Parkway, Suite 125, Bloomfield Hills, MI
Ordinary
100.00

The subsidiaries are exempt from the requirements of the Companies Act relating to the audit of individual accounts by virtue of guarantee that has been given by I. Grunwerg Limited.

16
Financial instruments
Group
Company
2023
2023
2023
2023
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
2,170,344
1,387,612
4,194,138
1,310,511
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
(836,329)
(1,011,735)
(1,564,994)
(974,062)
17
Stocks
Group
Company
2023
2023
2023
2023
£
£
£
£
Finished goods and goods for resale
9,870,353
11,165,253
9,870,353
11,165,253
I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 34 -
18
Debtors
Group
Company
2023
2023
2023
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,170,343
1,387,610
2,097,068
1,310,509
Amounts owed by group undertakings
154
-
74,553
85,470
Other debtors
22,637
20,019
22,353
12,000
Prepayments and accrued income
222,733
258,341
222,733
258,341
2,415,867
1,665,970
2,416,707
1,666,320
19
Creditors: amounts falling due within one year
Group
Company
2023
2023
2023
2023
Notes
£
£
£
£
Bank loans
21
729,354
1,877,942
729,354
1,877,942
Trade creditors
497,578
697,793
463,510
669,799
Corporation tax payable
125,980
188,719
89,215
176,016
Other taxation and social security
335,232
275,181
314,437
265,176
Government grants
23
3,993
-
0
3,993
-
0
Other creditors
17,403
23,297
15,912
21,562
Accruals and deferred income
388,084
290,645
369,811
282,701
2,097,624
3,353,577
1,986,232
3,293,196
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2023
2023
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
881,744
1,114,563
881,744
1,114,563
Other borrowings
21
2,226,606
1,254,450
2,226,606
1,254,450
Government grants
23
11,979
-
0
11,979
-
0
3,120,329
2,369,013
3,120,329
2,369,013
I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 35 -
21
Loans and overdrafts
Group
Company
2023
2023
2023
2023
£
£
£
£
Bank loans
1,611,098
2,992,505
1,611,098
2,992,505
Other loans
2,226,606
1,254,450
2,226,606
1,254,450
3,837,704
4,246,955
3,837,704
4,246,955
Payable within one year
729,354
1,877,942
729,354
1,877,942
Payable after one year
3,108,350
2,369,013
3,108,350
2,369,013

The bank borrowings comprise two loans: a 5 year fixed term loan of £1.7m charging interest at the Bank of England base rate plus +3.0% which commenced on 3rd May 2022 and an ongoing short-term Trade Finance facility of up to £2.75m charging interest at the Bank of England base rate plus 2.7%.

 

There are no penalties for early repayment of either of these agreements and no security has been given, although certain covenants apply.

22
Deferred taxation

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

Liabilities
Liabilities
2023
2023
Group
£
£
Accelerated capital allowances
97,600
82,840
Liabilities
Liabilities
2023
2023
Company
£
£
Accelerated capital allowances
96,000
80,000
I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
22
Deferred taxation
(Continued)
- 36 -
Group
Company
2023
2023
Movements in the period:
£
£
Liability at 1 May 2023
82,840
80,000
Charge to profit or loss
14,760
16,000
Liability at 31 December 2023
97,600
96,000

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

23
Government grants
Group
Company
2023
2023
2023
2023
£
£
£
£
Arising from government grants
15,972
-
15,972
-

Deferred income is included in the financial statements as follows:

Current liabilities
3,993
-
0
3,993
-
0
Non-current liabilities
11,979
-
0
11,979
-
0
15,972
-
15,972
-
24
Retirement benefit schemes
2023
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
29,528
38,437

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

I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 37 -
25
Share capital
Group and company
2023
2023
2023
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,103
2,103
2,103
2,103
Ordinary 'B' shares of £1 each
2
2
2
2
Ordinary 'C' shares of £1 each
2
2
2
2
2,107
2,107
2,107
2,107

The company has 3 classes of ordinary shares which carry no fixed right to income and all carry equal voting rights.

26
Financial commitments, guarantees and contingent liabilities

At 31 December 2023 the group and company had no import letters of credit outstanding (30 April 2023 - £nil).

 

The group and company has provided a guarantee to HM Revenue and Customs in the event of the non payment of duty, by way of a bond for £320,000.

27
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2023
2023
2023
£
£
£
£
Within one year
480,852
367,720
480,852
367,720
Between two and five years
1,806,250
1,430,828
1,806,250
1,430,828
In over five years
36,894
210,228
36,894
210,228
2,323,996
2,008,776
2,323,996
2,008,776
28
Controlling party

There is no ultimate controlling party of I. Grunwerg Limited.

I. GRUNWERG LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 38 -
29
Cash generated from/(absorbed by) group operations
2023
2023
£
£
Profit for the period after tax
353,509
1,011,921
Adjustments for:
Taxation charged
158,281
225,181
Finance costs
218,848
195,038
Investment income
(349)
(583)
(Gain)/loss on disposal of tangible fixed assets
(7,323)
55,944
Amortisation and impairment of intangible assets
-
3,317
Depreciation and impairment of tangible fixed assets
129,876
202,064
Movements in working capital:
Decrease/(increase) in stocks
1,294,900
(3,288,104)
(Increase)/decrease in debtors
(754,164)
461,343
Decrease in creditors
(48,619)
(416,193)
Increase in deferred income
15,972
-
Cash generated from/(absorbed by) operations
1,360,931
(1,550,072)
30
Analysis of changes in net debt - group
1 May 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
453,496
314,783
768,279
Borrowings excluding overdrafts
(4,246,955)
409,251
(3,837,704)
(3,793,459)
724,034
(3,069,425)
31
Analysis of changes in net debt - company
1 May 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
366,786
226,530
593,316
Borrowings excluding overdrafts
(4,246,955)
409,251
(3,837,704)
(3,880,169)
635,781
(3,244,388)
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