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REGISTERED NUMBER: 01948833 (England and Wales)


























STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

FOR

POWELLS LIMITED

POWELLS LIMITED (REGISTERED NUMBER: 01948833)

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










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Notes to the Financial Statements 11


POWELLS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST DECEMBER 2023







DIRECTORS: Mr G R Wells
Mr P A Moulding
Mr R M J Munnery
Mr M V Higgins
Mr G Wells
Mr C M Paris
Mr K J Livingstone



SECRETARY: Mr G Turner



REGISTERED OFFICE: Fleming Court
Leigh Road
Eastleigh
Southampton
Hampshire
SO50 9PD



BUSINESS ADDRESS: No 4 Mylen Business Centre
Beckett Road
Andover
Hampshire
SP10 3HR



REGISTERED NUMBER: 01948833 (England and Wales)



SENIOR STATUTORY AUDITOR: Graham Taylor



AUDITORS: Langdowns DFK Limited
Statutory Auditor
Fleming Court
Leigh Road
Eastleigh
Southampton
Hampshire
SO50 9PD

POWELLS LIMITED (REGISTERED NUMBER: 01948833)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023


The directors present their strategic report for the year ended 31st December 2023.

The results for the period and financial position of the company are shown in the annexed financial statements.

REVIEW OF BUSINESS
The principal activity of the company during the year continued to be that of shopfitting and undertaking interior fit outs for commercial customers.

The major influence of performance in 2023 was the on going effects from the global pandemic, and more especially the Ukraine war resulting in the high inflation experienced in the UK economy. The shortfalls in supply experienced the previous year were no longer such a major concern but high prices for materials and concurrently labour were major drivers. However, with the good management of supply chain issues improved gross profitability has been achieved and this has also resulted in limiting the increase in the cost of overheads in the current year.

As a major shopfitting and interiors main contractor the company operates with regard to the key performance indicators of turnover, gross profit and level of overheads. The figures for these for the current year and previous two years are as follows:
2023 2022 2021
Y/e 31st Dec Y/e 31st Dec Y/e 31st Dec
£   's £   's £   's

Turnover 27,719 26,586 20,968

Gross Profit 4,108 3,672 2,190

Administrative expenses 3,068 2,708 2,244

Profit/(loss) before tax 1,158 1,028 17

Turnover is now higher than pre pandemic levels. Gross profit this year is also above pre Covid levels in amount and percentage terms although overheads has risen in terms of the figure and as a percentage of sales. Despite the latter effect the profit before tax is above the historic levels both in amount and proportion of turnover. Similarly turnover, gross profit and profit before tax show improvements in amount and as a percentage of from the previous year.

The directors are confident that the company's cash reserves plus the vastly improved trading conditions together with on going contract work expected from existing clients in addition to continued support from the company's bankers and suppliers will enable the company to continue as a going concern for the foreseeable future.

PRINCIPAL RISKS AND UNCERTAINTIES
The major threats to the company remains the increases in the costs of major materials as a consequence of the effects of the war in Ukraine and the continuing retail market insecurities. With regard to costs, many of our clients have long standing rates agreed for a period and these have not been adjusted to take into account current conditions and problems in the supply chain. However this effect is being mitigated by specific agreements being drafted into contracts to allow for variation claims based on changing supply conditions which could not have been foreseen at the time of the original agreement to rates.

Despite the fragilities in the retail sector as a whole, the London market, which is the largest area of activity for the company remains a large draw for companies especially those looking to start in the UK for the first time. Our good reputation in this area ensures that we continue to have a steady supply of potential work to quote on a continuing basis. In addition our continued policy of diversification into other areas gives the Directors confidence that the company can continue to thrive and grow in the future.

A lesser risk is the skill shortage within the construction sector as the effects of the implementation of the Brexit process continues to feed through. Continual use of long standing contacts within the labour market enable the company to maintain and expand the sub contractor pool available.


POWELLS LIMITED (REGISTERED NUMBER: 01948833)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023

FUTURE DEVELOPMENTS AND RESEARCH AND DEVELOPMENT
The directors are seeking to maintain the existing management policies in the belief that this will maintain the excellent results reported in the year. The rigorous tendering process has ensured little exposure to risk related to design responsibilities this year and the monitoring of all contracts on a monthly basis by the surveying department has enabled timely action to be taken where any threats to targeted profitability has occurred.

As mentioned above we will progress our efforts to reach out to markets outside of our traditional sectors but will continue to fully support our current and future retail partners.

The company has continued its often innovative activities during the year as part of the creative and individual work it undertakes. Such pioneering work, enabling clients to expand their design boundaries, is part of the service we offer to clients and as such should continue into the future as part of the high end projects regularly undertaken.

BY ORDER OF THE BOARD:





Mr G Turner - Secretary


17th September 2024

POWELLS LIMITED (REGISTERED NUMBER: 01948833)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2023


The directors present their report with the financial statements of the company for the year ended 31st December 2023.

DIVIDENDS
The directors recommend a final dividend of £4,500 per share as set out in Note 10 to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report.

Mr G R Wells
Mr P A Moulding
Mr R M J Munnery
Mr M V Higgins
Mr G Wells
Mr C M Paris

Other changes in directors holding office are as follows:

Mr K J Livingstone was appointed as a director after 31st December 2023 but prior to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT
Items required under Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports Regulations) 2008 to be disclosed in the Report of the Directors are set out in the Strategic Report in accordance with section 414C(11) of the Companies Act 2006.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Langdowns DFK, will be proposed for re-appointment at the forthcoming Annual General Meeting.

BY ORDER OF THE BOARD:



Mr G Turner - Secretary


17th September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
POWELLS LIMITED


Opinion
We have audited the financial statements of Powells Limited (the 'company') for the year ended 31st December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31st December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
POWELLS LIMITED


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

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

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:

As part of our audit planning procedures we identify the significant laws and regulations applicable to the company based upon our knowledge of the company, the industry in which it operates and from making enquiries with management. We consider those laws and regulations where non-compliance may have a material effect on the financial statements and those which have a direct impact on the financial statements. We identified that the most significant laws and regulations applicable during the year were compliance with Health and Safety regulations, compliance with ISO9001 and ISO14001 standards and compliance with the requirements of the Companies Act 2006 and FRS 102.

Audit procedures performed by the engagement team in relation to laws and regulations include making enquiries of management as to any known or suspected instances of non-compliance, maintaining awareness throughout the course of the audit as to any indications of instances of non-compliance, undertaking a review of the accident logs and the Health and Safety Executive website for notices or convictions, reviewing ISO audit report findings, reviewing legal invoices for costs that may relate to potential claims against the company and undertaking a review of the disclosures in the financial statements to supporting information and to disclosure checklists.

We also consider areas that are at a higher risk of causing material misstatement in the financial statements due to irregularities, including those resulting from fraud and how such fraud may occur. We discuss with senior management the key controls in place to mitigate the risk of fraud and enquire as to whether they are aware of, or suspect, any fraudulent activities having taken place.

Throughout the audit, we maintain an appropriate level of professional scepticism when provided with information and explanations. We consider the appropriateness of significant accounting journals that were processed during the year, assess the reasonableness of any significant accounting estimates and consider whether there were any indications of bias by management during the year that represents a risk of material misstatement due to fraud. We also carry out analytical procedures to identify any unusual or unexpected variances to expectations as these may be an indication of management over-ride or management bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
POWELLS LIMITED


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




Graham Taylor (Senior Statutory Auditor)
for and on behalf of Langdowns DFK Limited
Statutory Auditor
Fleming Court
Leigh Road
Eastleigh
Southampton
Hampshire
SO50 9PD

23rd September 2024

POWELLS LIMITED (REGISTERED NUMBER: 01948833)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 4 27,719,073 26,585,533

Cost of sales 23,610,108 22,913,156
GROSS PROFIT 4,108,965 3,672,377

Administrative expenses 3,068,709 2,707,703
1,040,256 964,674

Other operating income 5 41,419 57,319
OPERATING PROFIT 7 1,081,675 1,021,993

Interest receivable and similar income 82,225 6,199
1,163,900 1,028,192

Interest payable and similar expenses 8 5,786 16
PROFIT BEFORE TAXATION 1,158,114 1,028,176

Tax on profit 9 146,728 -
PROFIT FOR THE FINANCIAL YEAR 1,011,386 1,028,176

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,011,386

1,028,176

POWELLS LIMITED (REGISTERED NUMBER: 01948833)

BALANCE SHEET
31ST DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 105,900 14,219

CURRENT ASSETS
Stocks 12 100 100
Debtors 13 3,102,169 4,503,672
Cash at bank and in hand 4,446,516 3,000,994
7,548,785 7,504,766
CREDITORS
Amounts falling due within one year 14 5,080,686 5,684,330
NET CURRENT ASSETS 2,468,099 1,820,436
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,573,999

1,834,655

CREDITORS
Amounts falling due after more than one year 15 (86,433 ) (55,943 )

PROVISIONS FOR LIABILITIES 18 (12,468 ) -
NET ASSETS 2,475,098 1,778,712

CAPITAL AND RESERVES
Called up share capital 19 70 70
Capital redemption reserve 20 30 30
Retained earnings 20 2,474,998 1,778,612
SHAREHOLDERS' FUNDS 2,475,098 1,778,712

The financial statements were approved by the Board of Directors and authorised for issue on 17th September 2024 and were signed on its behalf by:





Mr G R Wells - Director


POWELLS LIMITED (REGISTERED NUMBER: 01948833)

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

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1st January 2022 70 1,071,436 30 1,071,536

Changes in equity
Dividends - (321,000 ) - (321,000 )
Total comprehensive income - 1,028,176 - 1,028,176
Balance at 31st December 2022 70 1,778,612 30 1,778,712

Changes in equity
Dividends - (315,000 ) - (315,000 )
Total comprehensive income - 1,011,386 - 1,011,386
Balance at 31st December 2023 70 2,474,998 30 2,475,098

POWELLS LIMITED (REGISTERED NUMBER: 01948833)

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


1. STATUTORY INFORMATION

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

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


The company's principal place of business is No 4 Mylen Business Centre, Beckett Road, Andover, Hampshire, SP10 3HR.

2. STATEMENT OF COMPLIANCE

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

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Significant judgements and estimates
The following judgements (apart from those involving estimates) have been made in the process of applying the accounting policies below that have had the most significant effect on amounts recognised in the financial statements:

Valuing 'amounts recoverable on long term contracts' is a subjective area due to the fact that some contracts are carried out over a long period of time and some go on long after the financial year has ended. As a result there can be uncertainties with the final outcome of contracts. At the year end, amounts recoverable on contracts have been assessed at £385,781 and contract payments on account at £1,473,630.

The company ensures that ample time and skill is allocated to ensure that the judgements and estimates made are as accurate and reliable as possible.

The company has been in this industry for many years and as such has very good knowledge and understanding of the industry and business to be able to gauge accurately how contracts will end up and the future recoverability of debts.

Turnover and other income
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Shopfitting and construction contracts

When the outcome of a contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to the accumulated costs to date as compared to the projected final cost as per the tender adjusted for variations.

When the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable.

When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision.

Interest receivable

Interest income is recognised in the period that is has accrued and accordingly that the company is entitled to its receipt.

POWELLS LIMITED (REGISTERED NUMBER: 01948833)

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


3. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Leasehold property - 25% straight line
Equipment - 33.33% straight line and 20% straight line
Motor vehicles - 25% straight line

All fixed assets are initially recorded at cost and are subsequently recorded at cost less depreciation and any impairment.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

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

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the exchange rate ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other employee benefits
The company operates a defined contribution pension scheme and contributes to other defined contribution pension schemes. Contributions payable are charged to the profit and loss account in the period to which they relate.

The company also pays employees holiday pay. The holiday year runs in line with the company financial year and so the cost of this is incurred throughout the year as holiday is taken by the employee. Where holiday entitlements are not fully used at the year end and are carried forwards into a later year, an appropriate accrual is included to reflect this timing difference between the performance of work and the payment of remuneration.

Certain employees are also provided company cars or are paid a car allowance to fully incentivise them to perform their job to the required standard. The company also provides private medical insurance to certain employees.

POWELLS LIMITED (REGISTERED NUMBER: 01948833)

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


3. ACCOUNTING POLICIES - continued

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Intercompany loans are held on the balance sheet at cost with no interest charged on these.

Advances to the directors are held on the balance sheet at cost and are interest free.

Operating lease agreements
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

There are no lease incentives in relation to any operating leases in operation during the year.

Long term contracts
When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the end of the financial reporting period. Full provision is made for losses on all contracts in the period in which they are first foreseen.

When total revenue recognisable on a contract at the balance sheet date is less than the amount invoiced to date, this excess being 'amounts recoverable on contracts' is included within debtors. When amounts invoiced to date on a contract exceed the total revenue recognisable on a contract this excess, being 'payments on account' is included within creditors.

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Rendering of services 27,719,073 26,585,533
27,719,073 26,585,533

5. OTHER OPERATING INCOME
2023 2022
£    £   
Discounts received - 11
Management charges receivable 41,419 56,836
Exchange gains - 472
41,419 57,319

6. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,313,616 2,043,760
Social security costs 283,457 285,735
Other pension costs 52,170 46,965
2,649,243 2,376,460

POWELLS LIMITED (REGISTERED NUMBER: 01948833)

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


6. EMPLOYEES AND DIRECTORS - continued

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

Administrative and management staff 21 19
Direct cost staff 21 20
42 39

2023 2022
£    £   
Directors' remuneration 782,040 718,208
Directors' pension contributions to money purchase schemes 16,035 14,891

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 6 6

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 262,472 237,289
Pension contributions to money purchase schemes 1,321 1,321

7. OPERATING PROFIT

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

2023 2022
£    £   
Depreciation - owned assets 10,591 13,036
Auditors' remuneration 17,000 15,500
Foreign exchange differences 764 (472 )
Operating lease costs : Land and buildings 70,671 68,427

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest payable - 16
Loan 5,786 -
5,786 16

POWELLS LIMITED (REGISTERED NUMBER: 01948833)

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


9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 134,260 -

Deferred tax 12,468 -
Tax on profit 146,728 -

UK corporation tax has been charged at 23.52% (2022 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,158,114 1,028,176
Profit multiplied by the standard rate of corporation tax in the UK of
23.520% (2022 - 19%)

272,388

195,353

Effects of:
Expenses not deductible for tax purposes 45,399 31,782
Capital allowances in excess of depreciation (24,420 ) (245 )
Utilisation of tax losses (104,392 ) (227,023 )
Timing difference on expenses 61 133
Deferred tax adjustment 12,468 -
Group relief adjustment (54,776 ) -
Total tax charge 146,728 -

The company is anticipating a Research and Development enhanced relief claim for the the year ended 31st December 2022 and for the year ended 31st December 2023. However as the size of these could not yet be accurately assessed and no claim has been made, no adjustment has been reflected in these accounts.

At 31st December 2023 there were tax losses carried forward available for utilisation in future years totalling £nil (2022: £443,844).

The UK corporation tax rate rose from 19% to 25% with effect from 1st April 2023. Therefore, the effective rate of tax for the year is 23.52%.

10. DIVIDENDS
2023 2022
£    £   
Final dividend - Ordinary 315,000 321,000

Dividends declared after the year end, not recognised as a liability in the financial statements, totalled £274,051. Where an obligation exists at the balance sheet date to declare and pay a dividend, an appropriate accrual is included. At 31st December 2023 total accrued dividends amounted to £315,000 (2022: £321,000).

POWELLS LIMITED (REGISTERED NUMBER: 01948833)

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


11. TANGIBLE FIXED ASSETS
Leasehold Motor
property Equipment vehicles Totals
£    £    £    £   
COST
At 1st January 2023 98,830 153,245 8,800 260,875
Additions - 102,272 - 102,272
At 31st December 2023 98,830 255,517 8,800 363,147
DEPRECIATION
At 1st January 2023 98,830 141,409 6,417 246,656
Charge for year - 8,391 2,200 10,591
At 31st December 2023 98,830 149,800 8,617 257,247
NET BOOK VALUE
At 31st December 2023 - 105,717 183 105,900
At 31st December 2022 - 11,836 2,383 14,219

12. STOCKS
2023 2022
£    £   
Stocks 100 100

Stocks comprise of raw materials.

13. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 2,080,131 3,770,160
Amounts owed by group undertakings 45,366 78,210
Other debtors - 1,049
Amounts recoverable on long term contracts 385,781 184,167
Directors' current accounts 415,299 353,597
Prepayments and accrued income 112,589 116,489
3,039,166 4,503,672

Amounts falling due after more than one year:
Tax 63,003 -

Aggregate amounts 3,102,169 4,503,672

POWELLS LIMITED (REGISTERED NUMBER: 01948833)

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


14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Other loans (see note 16) 30,133 -
Payments on account 1,473,630 809,999
Trade creditors 2,323,353 2,923,628
Amounts owed to group undertakings 34,339 -
Tax 134,260 -
Social security and other taxes 357,156 1,248,643
Other creditors 330,653 257,849
Accruals and deferred income 397,162 444,211
5,080,686 5,684,330

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Other loans (see note 16) 48,862 -
Other creditors 37,571 55,943
86,433 55,943

16. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Other loans 30,133 -

Amounts falling due between one and two years:
Other loans 48,862 -

17. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 86,449 30,328
Between one and five years 124,639 34,184
211,088 64,512

18. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax:
Accelerated capital allowances 12,468 -
12,468 -

POWELLS LIMITED (REGISTERED NUMBER: 01948833)

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


18. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Movement in the year 12,468
Balance at 31st December 2023 12,468

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
70 Ordinary £1 70 70

Ordinary shares carry the right to one vote per share and are entitled pari passu to dividend and other distributions.

20. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1st January 2023 1,778,612 30 1,778,642
Profit for the year 1,011,386 1,011,386
Dividends (315,000 ) (315,000 )
At 31st December 2023 2,474,998 30 2,475,028

21. PENSION COMMITMENTS

The company operates a defined contribution pension scheme and contributes to other defined contribution pension schemes for its directors and employees. The assets of the schemes are held separately from those of the company in independently administered funds. There were unpaid contributions due at the end of the period in relation to these schemes amounting to £12,727 (2022: £11,395).

22. ULTIMATE PARENT COMPANY

The parent company and the ultimate parent company is Powells Group Limited, a company registered at Fleming Court, Leigh Road, Eastleigh, Hampshire, SO50 9PD. It has included the company in its group financial statements, copies of which are available from No. 4 Mylen Business Centre, Beckett Road, Andover, Hampshire, SP10 3HR.

23. CONTINGENT LIABILITIES

The company has an intercompany guarantee in place with the bank over fellow subsidiaries of Powells Group Ltd.

POWELLS LIMITED (REGISTERED NUMBER: 01948833)

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


24. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31st December 2023 and 31st December 2022:

2023 2022
£    £   
Mr G R Wells
Balance outstanding at start of year 353,597 -
Amounts advanced 222,469 353,597
Amounts repaid (160,767 ) -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 415,299 353,597

The loan to the director Mr G R Wells was unsecured and interest free and with no specified repayment date.

25. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with group companies where any subsidiary that is a party to the transaction is wholly owned within the group or where transactions have been undertaken under normal market conditions.

The company had the following related party balances and transactions, which are not covered by the above mentioned exemption;

Entities with control, joint control or significant influence over the entity
2023 2022
£    £   
Amount due from related party 19,018 48,847

Key management personnel of the entity or its parent (in the aggregate)
2023 2022
£    £   
Sales 4,434 2,742
Amounts recoverable on contracts due from related party 15,146 15,146
Amount due from related party 415,299 353,597

The directors of the company are considered to be the key management personnel of the company and their remuneration is detailed in note 6.

The sales to key management personnel of the company were at cost and therefore below market rate.

Other related parties
2023 2022
£    £   
Sales 55,425 92,900
Purchases - 5,685
Rental charges incurred 29,637 18,500
Provision of services from related party 186,505 157,650
Amounts recoverable on contracts due from related party 53,761 419
Amount due from related party 25,413 29,363
Amount due to related party 46,429 -

Amounts due to or from related parties are unsecured and interest free.

POWELLS LIMITED (REGISTERED NUMBER: 01948833)

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


26. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Mr G R Wells.

Mr G R Wells maintained control of the company during the current and previous period by virtue of the fact that he controls the majority of the issued share capital of the parent company, Powells Group Limited.