Company registration number 10534819 (England and Wales)
NWTT HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
NWTT HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr R W Mayor
Mr S W Mayor
Mr T M Mayor
Company number
10534819
Registered office
NWTT House
Lockett Road
South Lancs Industrial Estate
Wigan
WN4 8DE
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
NWTT HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
4 - 5
Directors' responsibilities statement
3
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 32
NWTT HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

 

Principal activities

The principal activity of the group during the year 2023 has been the supply of timber, garden products and timber treatment along with machining timber and the manufacturing of fence panels. The principal investment of the company is that of holding an investment in trading subsidiaries.

Review of the business

Trading conditions in 2023 have been tough, the cost-of-living crisis, the war in Ukraine, political turmoil in the UK have all contributed to a difficult environment. Despite losses in the year the Directors are pleased with the integration of the two new branches purchased in the prior year.

 

The board has kept close to the marketplace and is planning for the future carefully with prudent caution.

 

Despite difficult trading conditions the group maintained a turnover of £10.1M and a gross margin of 24.2%. A trading loss of £549k has been reported.

 

The group remains compliant with all national living wage requirements. The directors monitor all economic trends.

 

Key performance indicators

The Directors monitor several key performance indicators which are reported regularly in the Management Information pack.

 

These include turnover trends, gross margin which is reported as 24% (2022: 28%) for the year.  Debtor days, with an average of 30 (2022: 32) in the year and stockturn which was every 106 days (2022: 108 days) in the year.

Principal risks and uncertainties

The group’s operations are exposed to a variety of risks, and this could cause actual results to differ materially. Other factors that could adversely affect the results are set out below.

 

Business conditions and general economy

The 2023 profitability has been affected by the major downturn in retail sales, regardless of the group driving sales. The impact of growing interest rates and higher energy prices is having a detrimental effect.

 

Commercial risk

The group trades with a number of customers. The failure of customers would impact on the business and possibly our financial position. The group closely monitors its accounts and debtor days to minimise risk.

 

Development and performance

The Ukraine and Russian war continues to have an impact on the timber trade with uncertain energy and fuel costs remaining. This market turbulence has had an impact on profits. However, during 2023 the group has had no problem in maintaining stock levels.

 

The two depot additions in the previous year have now started to perform and contribute to the overall results. They have been fully integrated at all levels including IT systems, management and trading. These branches now sell the full range of product line available across the Group.

 

The group is aware of its environmental responsibility and continues to make significant investments to improve efficiencies in re-cycling and waste management whilst maintaining its ISO14001 accredited system. All managers and Directors have taken ownership to help with the aim of reducing the overall carbon footprint wherever possible.

NWTT HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Business conditions and general economy

The profitability of the group could be adversely affected by the general economic conditions worsening. There is uncertainty surrounding the policies of a new UK government. Although turbulence in global conditions and economics, should not significantly adversely affect profitability, a sustained downturn over several years would likely impact the level of demand for timber and other construction products and therefore potentially impact the company's turnover and profitability. Supply issues from eastern Europe remains risk.

 

Commercial risk

The group trades with a number of customers, the loss of any of which could cause an impact on future trading. The company works closely with all major customers to maintain relationships, and reduces this risk by having a broad customer base.

 

Credit risk

The group derived its income from a variety of customers. The failure of customers could materially impact on the group's financial position. The company closely monitors levels of debt and seeks to keep trade debtor days low to reduce this risk.

Other key performance indiciators

The group has the ability to hold appropriate levels of stock and monitors stock usage and market prices along with availability to ensure it remains profitable and agile.

 

The group is aware of its environmental responsibilities and continues to make significant investment to improve efficiency in recycling and waste management. The directors realise their responsibility and continue to improve the group's systems in waste minimisation which can be reflected by the company maintaining its ISO14001 accreditation. All directors have taken ownership of the continuous aim to be a greener, cleaner group in all areas of operation.

Future developments

The group has grown its portfolio of depots in 2022, but with the challenge of higher interest rates and ever-changing fuel costs. The group will remain at this level in the immediate future. There have been unforeseen changes during 2022 and NWTT feels there will be no more acquisitions until there is stability. Our aim for 2023 is to keep and improve profitability and remain a strong player in our business sector.

 

We are hoping for the construction and retail industry to improve to show slow growth in the year 2023.

 

The Directors would like to thank all the committed employees for making 2022 a good year.

On behalf of the board

Mr R W Mayor
Director
24 September 2024
NWTT HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR 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.

NWTT HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £35,081. The directors do not recommend payment of a further dividend.

Directors

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

Mr R W Mayor
Mr S W Mayor
Mr T M Mayor
Financial instruments
Risk management

The group's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk, liquidity risk cash flow risk and interest rate risk. Where relevant the group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by monitoring levels of debt finance and the related finance costs. The group does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied.

 

Given the size of the group, the director has not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board are implemented by the group's finance department.

 

The director will revisit the appropriateness of this policy should the group's operations change in size or nature.

Auditor

MHA were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and financial instruments.

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.

NWTT HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
On behalf of the board
Mr R W Mayor
Director
24 September 2024
NWTT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NWTT HOLDINGS LIMITED
- 6 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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.

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.

NWTT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NWTT HOLDINGS LIMITED
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

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

 

In the light of the knowledge and understanding of the group and 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.

Matters on which we are required to report by exception

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.

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.

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 procedures we carried out and the extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

NWTT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NWTT HOLDINGS LIMITED
- 8 -

 

Because of the field in which the client operates we identified that employment law, health and safety legislation and compliance with the UK Companies Act are the areas most likely to have a material impact on the financial statements.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

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.

Paul Locker BSc(Hons) FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Preston, United Kingdom
24 September 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
NWTT HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
10,118,972
11,748,097
Cost of sales
(7,674,928)
(8,520,353)
Gross profit
2,444,044
3,227,744
Administrative expenses
(2,900,575)
(2,921,277)
Other operating income
500
1,951
Operating (loss)/profit
4
(456,031)
308,418
Interest receivable and similar income
7
10,305
11,903
Interest payable and similar expenses
8
(102,914)
(74,070)
(Loss)/profit before taxation
(548,640)
246,251
Tax on (loss)/profit
9
80,193
(37,806)
(Loss)/profit for the financial year
24
(468,447)
208,445
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
NWTT HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
32,800
36,900
Other intangible assets
13
40,897
26,043
Total intangible assets
73,697
62,943
Tangible assets
11
4,450,233
4,263,729
4,523,930
4,326,672
Current assets
Stocks
15
1,709,459
1,956,547
Debtors
16
1,811,860
1,795,888
Cash at bank and in hand
300
271,429
3,521,619
4,023,864
Creditors: amounts falling due within one year
17
(2,090,484)
(1,635,318)
Net current assets
1,431,135
2,388,546
Total assets less current liabilities
5,955,065
6,715,218
Creditors: amounts falling due after more than one year
18
(1,494,350)
(1,652,804)
Provisions for liabilities
Deferred tax liability
21
253,658
351,829
(253,658)
(351,829)
Net assets
4,207,057
4,710,585
Capital and reserves
Called up share capital
23
200
200
Other reserves
24
2,877,100
2,877,100
Profit and loss reserves
24
1,329,757
1,833,285
Total equity
4,207,057
4,710,585
The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
24 September 2024
Mr R W Mayor
Director
Company registration number 10534819 (England and Wales)
NWTT HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
689,603
689,603
Investments
12
4,599,689
4,599,689
5,289,292
5,289,292
Current assets
Debtors
16
719,164
580,739
Cash at bank and in hand
-
0
894
719,164
581,633
Creditors: amounts falling due within one year
17
(1,219,405)
(759,597)
Net current liabilities
(500,241)
(177,964)
Total assets less current liabilities
4,789,051
5,111,328
Creditors: amounts falling due after more than one year
18
(1,320,177)
(1,512,660)
Net assets
3,468,874
3,598,668
Capital and reserves
Called up share capital
23
200
200
Other reserves
24
2,877,100
2,877,100
Profit and loss reserves
24
591,574
721,368
Total equity
3,468,874
3,598,668

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £94,714 (2022 - £32,304 profit).

The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
24 September 2024
Mr R W Mayor
Director
Company registration number 10534819 (England and Wales)
NWTT HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
200
2,877,100
1,774,840
4,652,140
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
208,445
208,445
Dividends
10
-
-
(150,000)
(150,000)
Balance at 31 December 2022
200
2,877,100
1,833,285
4,710,585
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
(468,447)
(468,447)
Dividends
10
-
-
(35,081)
(35,081)
Balance at 31 December 2023
200
2,877,100
1,329,757
4,207,057
NWTT HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
200
2,877,100
839,064
3,716,364
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
32,304
32,304
Dividends
10
-
-
(150,000)
(150,000)
Balance at 31 December 2022
200
2,877,100
721,368
3,598,668
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
(94,713)
(94,713)
Dividends
10
-
-
(35,081)
(35,081)
Balance at 31 December 2023
200
2,877,100
591,574
3,468,874
NWTT HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
521,568
932,999
Interest paid
(102,914)
(74,070)
Income taxes paid
(48,007)
(328,896)
Net cash inflow from operating activities
370,647
530,033
Investing activities
Purchase of business
-
(381,488)
Net cash acquired
-
134,175
Purchase of intangible assets
(14,854)
(7,263)
Purchase of tangible fixed assets
(695,904)
(1,288,224)
Proceeds from disposal of tangible fixed assets
116,203
140,000
Repayment of loans
(149,552)
(94,835)
Interest received
10,305
11,903
Net cash used in investing activities
(733,802)
(1,485,732)
Financing activities
Proceeds from new bank loans
-
650,000
Repayment of bank loans
(192,473)
(221,248)
Payment of finance leases obligations
67,655
82,496
Dividends paid to equity shareholders
(35,081)
(150,000)
Net cash (used in)/generated from financing activities
(159,899)
361,248
Net decrease in cash and cash equivalents
(523,054)
(594,451)
Cash and cash equivalents at beginning of year
271,429
865,880
Cash and cash equivalents at end of year
(251,625)
271,429
Relating to:
Cash at bank and in hand
300
271,429
Bank overdrafts included in creditors payable within one year
(251,925)
-
NWTT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

NWTT Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is NWTT House, Lockett Road, South Lancs Industrial Estate, Wigan, WN4 8DE.

 

The group consists of NWTT Holdings Limited and 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:

 

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 deficit of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as negative 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.

NWTT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated financial statements incorporate those of NWTT Holdings Limited and its subsidiary (ie an entity that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

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.

1.4
Going concern

The group has faced increasing fuel / energy prices and rising inflation throughout the year and post the balance sheet date, this has been in conjunction with the implications on supply chain and changed in market demands.

 

The directors have put together a budget for FY24 and FY25 which show a return to profitability at both EBITDA and net profit levels. The group is currently trading as expected against these budgets.

 

The directors are continuously assessing the impact of global issues on the market and are considering the flexibility the company requires to both prepare and react to the ever-changing unprecedented circumstances.

 

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

1.5
Turnover

Turnover represents amounts received or receivable for goods net of VAT and trade discounts.

Turnover is recognised upon delivery of goods to, or collection by, the customer as at this point the significant risks and rewards of ownership of the goods have passed to the buyer. Additionally, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Negative goodwill represents the deficit of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as a liability at cost and is subsequently measured at cost less accumulated amortisation. Negative goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is two years.

1.7
Intangible fixed assets other than goodwill

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

 

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

NWTT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

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

Software
20% per annum straight line
1.8
Tangible fixed assets

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

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

Freehold land and buildings
2.5% per annum straight line
Leasehold land and buildings
Over life of lease
Plant, machinery and equipment
15% per annum reducing balance
Fixtures and fittings
10% per annum reducing balance
Motor vehicles
25% per annum 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.

1.9
Fixed asset investments

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

 

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

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

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 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.

NWTT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

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.

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.

1.11
Stocks

Stocks are stated at the lower of cost and net realisable value. 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.

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

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

1.12
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

All of the group's financial assets are basic financial instruments.

NWTT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets

Financial assets 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 and bank loans 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.

Other financial liabilities

All of the group's financial liabilities are basic financial instruments.

Derecognition of financial liabilities

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

1.14
Equity instruments

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

NWTT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.15
Taxation

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

Current tax

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

Deferred tax

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

 

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

1.16
Employee benefits

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

 

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

 

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.

1.17
Retirement benefits

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

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

NWTT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -

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

1.19
Government grants

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

 

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.

1.20
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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.

Key sources of estimation uncertainty

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

Impairment of stock

At each balance sheet date, the directors undertake a review of stock balances and estimate which, if any, should either be impaired or provided against.

 

This calculation is based on their knowledge of potential future demand, alternative available stock and any indications of obsolescence.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Derived from the group's principal activities
10,118,972
11,748,097
NWTT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 22 -
2023
2022
£
£
Other revenue
Interest income
10,305
11,903
Grants received
500
750

All turnover has been within the UK market.

4
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Government grants
(500)
(750)
Depreciation of owned tangible fixed assets
306,803
320,648
Depreciation of tangible fixed assets held under finance leases
112,318
89,268
Profit on disposal of tangible fixed assets
(25,924)
(36,666)
Amortisation of intangible assets
4,100
4,100
Operating lease charges
6,548
3,431
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
33
2,200
Audit of the financial statements of the company's subsidiaries
18,500
20,000
18,533
22,200
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Production staff
49
62
-
-
Administrative staff
27
25
3
3
Total
76
87
3
3
NWTT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,363,649
2,251,543
-
0
-
0
Social security costs
211,090
202,466
-
-
Pension costs
57,920
29,031
-
0
-
0
2,632,659
2,483,040
-
0
-
0
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
1,032
1,518
Other interest income
9,273
10,385
Total income
10,305
11,903
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
85,633
63,670
Interest on finance leases and hire purchase contracts
17,281
10,400
Total finance costs
102,914
74,070
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(2,553)
Adjustments in respect of prior periods
11,494
(18,575)
Total current tax
11,494
(21,128)
NWTT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
2023
2022
£
£
(Continued)
- 24 -
Deferred tax
Origination and reversal of timing differences
(91,687)
44,684
Changes in tax rates
-
0
14,110
Adjustment in respect of prior periods
-
0
140
Total deferred tax
(91,687)
58,934
Total tax (credit)/charge
(80,193)
37,806

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(548,640)
246,251
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(129,040)
46,788
Tax effect of expenses that are not deductible in determining taxable profit
20,776
20,304
Tax effect of income not taxable in determining taxable profit
(2,207)
(29,054)
Tax effect of utilisation of tax losses not previously recognised
-
0
(1,136)
Unutilised tax losses carried forward
24,532
-
0
Adjustments in respect of prior years
11,494
(18,435)
Effect of change in corporation tax rate
(5,748)
-
Change in deferred tax rate
-
0
19,339
Taxation (credit)/charge
(80,193)
37,806

Factors affecting future tax and charges

In March 2021 the Chancellor confirmed, in the budget, an increase in the corporation tax rate from 19% to 25%. The Finance Bill 2021 had its third reading on 24 May 2021 and is now considered substantively enacted. The timing differences expected to reverse on or after 1 April 2023 have been accounted for at 25%.

10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
35,081
150,000
NWTT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant, machinery and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
2,573,491
568,795
599,521
468,413
661,543
4,871,763
Additions
78,108
1,605
136,128
112,204
367,859
695,904
Disposals
-
0
-
0
(60,750)
-
0
(141,892)
(202,642)
At 31 December 2023
2,651,599
570,400
674,899
580,617
887,510
5,365,025
Depreciation and impairment
At 1 January 2023
319,327
40,998
(132,948)
231,358
149,299
608,034
Depreciation charged in the year
65,148
16,284
111,768
44,213
181,708
419,121
Eliminated in respect of disposals
-
0
-
0
(5,671)
-
0
(106,692)
(112,363)
At 31 December 2023
384,475
57,282
(26,851)
275,571
224,315
914,792
Carrying amount
At 31 December 2023
2,267,124
513,118
701,750
305,046
663,195
4,450,233
At 31 December 2022
2,254,164
527,797
732,469
237,055
512,244
4,263,729
Company
Freehold land and buildings
£
Cost
At 1 January 2023 and 31 December 2023
689,603
Depreciation and impairment
At 1 January 2023 and 31 December 2023
-
0
Carrying amount
At 31 December 2023
689,603
At 31 December 2022
689,603
NWTT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Tangible fixed assets
(Continued)
- 26 -

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant, machinery and equipment
233,075
274,206
-
0
-
0
Motor vehicles
281,673
165,341
-
0
-
0
514,748
439,547
-
-
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
4,599,689
4,599,689
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
4,599,689
Carrying amount
At 31 December 2023
4,599,689
At 31 December 2022
4,599,689
13
Intangible fixed assets
Group
Goodwill
Negative goodwill
Software
Total
£
£
£
£
Cost
At 1 January 2023
(39,800)
40,569
26,043
26,812
Additions
-
0
-
0
14,854
14,854
At 31 December 2023
(39,800)
40,569
40,897
41,666
Amortisation and impairment
At 1 January 2023
(76,700)
40,569
-
0
(36,131)
Amortisation charged for the year
4,100
-
0
-
0
4,100
At 31 December 2023
(72,600)
40,569
-
0
(32,031)
NWTT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Intangible fixed assets
(Continued)
- 27 -
Carrying amount
At 31 December 2023
32,800
-
0
40,897
73,697
At 31 December 2022
36,900
-
0
26,043
62,943
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
14
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
North West Timber Treatment Limited
England and Wales
Ordinary
100.00
Percy Brierley & Co. Limited
England and Wales
Ordinary
100.00
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
1,709,459
1,956,547
-
0
-
0
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
820,970
1,004,033
-
0
-
0
Corporation tax recoverable
306,035
249,671
182,630
132,267
Other debtors
633,808
490,197
536,534
441,988
Prepayments and accrued income
51,047
44,009
-
0
-
0
1,811,860
1,787,910
719,164
574,255
Deferred tax asset (note 21)
-
0
1,494
-
0
-
0
1,811,860
1,789,404
719,164
574,255
Amounts falling due after more than one year:
Deferred tax asset (note 21)
-
0
6,484
-
0
6,484
Total debtors
1,811,860
1,795,888
719,164
580,739
NWTT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
459,563
207,628
215,181
207,628
Obligations under finance leases
20
170,224
136,598
-
0
-
0
Trade creditors
1,007,871
798,785
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
953,861
519,963
Corporation tax payable
50,363
32,006
50,363
32,006
Other taxation and social security
269,594
319,937
-
-
Other creditors
78,401
101,140
-
0
-
0
Accruals and deferred income
54,468
39,224
-
0
-
0
2,090,484
1,635,318
1,219,405
759,597

Obligations under finance leases are secured over the assets to which they relate.

18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
1,320,177
1,512,660
1,320,177
1,512,660
Obligations under finance leases
20
174,173
140,144
-
0
-
0
1,494,350
1,652,804
1,320,177
1,512,660

Obligations under finance leases are secured over the assets to which they relate.

19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,527,815
1,720,288
1,527,815
1,720,288
Bank overdrafts
251,925
-
0
7,543
-
0
1,779,740
1,720,288
1,535,358
1,720,288
Payable within one year
459,563
207,628
215,181
207,628
Payable after one year
1,320,177
1,512,660
1,320,177
1,512,660
NWTT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Loans and overdrafts
(Continued)
- 29 -

Bank loans are secured via a debenture over the assets of the company, a cross company guarantee between NWTT Holdings and its subsidiary North West Timber Treatment Limited and via a fixed charge of that company's freehold property at Lockett Road, Ashton in Makerfield.

 

Bank loans have an initial five year repayment profile, possessing both fixed and variable interest charges upon them.

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
190,422
150,595
-
0
-
0
In two to five years
182,170
149,679
-
0
-
0
372,592
300,274
-
-
Less: future finance charges
(28,195)
(23,532)
-
0
-
0
344,397
276,742
-
0
-
0

Finance lease payments represent rentals payable by the group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
ACAs
389,755
350,018
-
-
Tax losses
(139,571)
493
-
7,978
SBAs
3,474
1,318
-
-
253,658
351,829
-
7,978
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Tax losses
-
-
-
6,484
NWTT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Deferred taxation
(Continued)
- 30 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability/(Asset) at 1 January 2023
343,851
(6,484)
(Credit)/charge to profit or loss
(90,193)
6,484
Liability at 31 December 2023
253,658
-

The deferred tax asset element set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period. As the group has not finalised its capital expenditure plans for the 2022 financial year, it is not practicable to estimate whether the deferred tax provision will reverse within 12 months of the balance sheet date.

22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
57,920
29,031

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.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
100
100
100
100
B Ordinary shares of £1 each
100
100
100
100
200
200
200
200
24
Reserves
Merger reserve

A merger reserve recognises the fair value uplift in business combination transactions.

Profit and loss reserves

Profit and loss reserves represent earnings net of distributions to the owner.

NWTT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
25
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
41,089
37,185
-
-
Between two and five years
84,645
109,009
-
-
In over five years
475,125
527,875
-
-
600,859
674,069
-
-
26
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
-
136,948
-
-
27
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
166,323
204,076
28
Directors' transactions

As at the year end the company has an outstanding balance due from the director of £536,534 (2022: £386,982), which was also the largest advance received throughout the period.

 

The advance is repayable on demand and the company levies interest on this balance at the HMRC approved rate.

29
Controlling party

The company is under the control of Mr R W Mayor.

NWTT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
30
Cash generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(468,447)
208,445
Adjustments for:
Taxation (credited)/charged
(80,193)
37,806
Finance costs
102,914
74,070
Investment income
(10,305)
(11,903)
Gain on disposal of tangible fixed assets
(25,924)
(36,666)
Amortisation and impairment of intangible assets
4,100
4,100
Depreciation and impairment of tangible fixed assets
419,121
409,916
Movements in working capital:
Decrease in stocks
247,088
162,461
Decrease in debtors
181,966
113,423
Increase/(decrease) in creditors
151,248
(28,655)
Cash generated from operations
521,568
932,997
31
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
271,429
(271,129)
300
Bank overdrafts
-
0
(251,925)
(251,925)
271,429
(523,054)
(251,625)
Borrowings excluding overdrafts
(1,720,288)
192,473
(1,527,815)
Obligations under finance leases
(276,742)
(67,655)
(344,397)
(1,725,601)
(398,236)
(2,123,837)
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