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2023-01-01
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Company registration number:
NI607675
COWAN BROS. NI LTD
Financial statements
31 December 2023
COWAN BROS. NI LTD
Contents
Directors and other information
Strategic report
Directors report
Independent auditor's report to the members
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
COWAN BROS. NI LTD
Directors and other information
|
|
|
|
Directors |
George Oliver Cowan |
|
|
David Cowan |
|
|
Martha Cowan |
|
|
|
|
|
|
|
Company number |
NI607675 |
|
|
|
|
|
|
|
Registered office |
2 Carrakeel Drive |
|
|
Maydown Industrial Estate |
|
|
Co. Londonderry |
|
|
BT47 6UQ |
|
|
|
|
|
|
|
Business address |
2 Carrakeel Drive |
|
|
Maydown Industrial Estate |
|
|
Co. Londonderry |
|
|
BT47 6UQ |
|
|
|
|
|
|
|
Auditor |
McDaid McCullough Moore |
|
|
28/32 Clarendon Street |
|
|
Londonderry |
|
|
BT48 7HD |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bankers |
HSBC |
|
|
12 - 14 The Diamond |
|
|
Londonderry |
|
|
BT48 6HW |
|
|
|
|
|
Danske Bank |
|
|
Donegal Square West |
|
|
Belfast |
|
|
BT1 6JS |
|
|
|
COWAN BROS. NI LTD
Strategic report
Year ended 31 December 2023
Principal activities
The Company's principal activities are that of retailing wholegood plant and machinery and related services.
Review of activities and future developments
The results for the year are set out on the following pages. Due to the straightforward nature of the business the directors are of the opinion that analysis of performance of the company using key performance indicators is not necessary. The directors are satisfied with the performance of the company and expect to increase turnover and profitability in future years. Profit for the year was £842,652 (2022 : £996,275). Net assets at the balance sheet date were £3,728,048 (2022 : £2,960,366).
Principal risks and uncertainties
The principal risks affecting the company are maintaining income and keeping direct and indirect costs at a sustainable level to promote company profitability.
Financial risk management
The company's operations expose it to financial risks that include the effects of stock turnover risk, credit risk, interest rate risk and liquidity risk. The company has in place a risk management programme to monitor its exposure to financial risk. Due to the size of the company, the directors have not delegated responsibility of monitoring financial risk to a sub committee of the board.
The company maintains significant stock levels as part of its operations. Stock control procedures are in place to minimise the risk of stock obsolescence.
The company makes sales in both cash and credit and has in place credit control procedures to minimise the risk of selling by credit.
The company manages liquidity risk by constantly monitoring cash/credit levels and has available adequate banking facilities to absorb unusual cash flow problems.
This report was approved by the board of directors on 12 August 2024 and signed on behalf of the board by:
George Oliver Cowan
Director
COWAN BROS. NI LTD
Directors report
Year ended 31 December 2023
The directors present their report and the financial statements of the company for the year ended 31 December 2023.
Directors
The directors who served the company during the year were as follows:
|
George Oliver Cowan |
David Cowan |
Martha Cowan |
|
Dividends
Particulars of recommended dividends are detailed in note 11 to the financial statements.
Directors responsibilities statement
The directors are responsible for preparing the strategic report, directors report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 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 judgments and accounting estimates that are reasonable and prudent; and
-
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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
-
so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on
12 August 2024
and signed on behalf of the board by:
George Oliver Cowan
Director
COWAN BROS. NI LTD
Independent auditor's report to the members of
COWAN BROS. NI LTD
Year ended 31 December 2023
Opinion
We have audited the financial statements of COWAN BROS. NI LTD (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s 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 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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the strategic report and the directors' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters 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 the returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the company and the environment in which it operates, we identified that the principal risk was of non-compliance with laws and regulations related to medium sized companies and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, corporation tax, vat and payroll tax. Audit procedures performed included the following:- Inspecting correspondence with tax authorities;- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;- Considering the internal controls in place to mitigate risks of fraud and non- compliance with laws and regulations;- Identifying and testing of transactions and the rationale behiind significant or unusual transactions, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions;- Challenging assumptions and judgements made by management in their critical accounting estimates.Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. -
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Patrick Moore
(Senior Statutory Auditor)
For and on behalf of
McDaid McCullough Moore
Chartered Accountants
28/32 Clarendon Street
Londonderry
BT48 7HD
12 August 2024
COWAN BROS. NI LTD
Statement of comprehensive income
Year ended 31 December 2023
|
|
|
|
2023 |
|
2022 |
|
|
|
|
Note |
|
£ |
|
£ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover |
|
4 |
|
18,676,735 |
|
18,291,529 |
|
|
Cost of sales |
|
|
|
(
15,878,199) |
|
(
15,380,516) |
|
|
|
|
|
|
_______ |
|
_______ |
|
|
Gross profit |
|
|
|
2,798,536 |
|
2,911,013 |
|
|
|
|
|
|
|
|
|
|
|
Administrative expenses |
|
|
|
(
1,735,667) |
|
(
1,764,615) |
|
|
Other operating income |
|
5 |
|
63,755 |
|
69,349 |
|
|
|
|
|
|
_______ |
|
_______ |
|
|
Operating profit |
|
6 |
|
1,126,624 |
|
1,215,747 |
|
|
|
|
|
|
|
|
|
|
|
Interest payable and similar expenses |
|
9 |
|
(
4,574) |
|
(
3,282) |
|
|
|
|
|
|
_______ |
|
_______ |
|
|
Profit before taxation |
|
|
|
1,122,050 |
|
1,212,465 |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit |
|
10 |
|
(
279,398) |
|
(
216,190) |
|
|
|
|
|
|
_______ |
|
_______ |
|
|
Profit for the financial year and total comprehensive income |
|
|
|
842,652 |
|
996,275 |
|
|
|
|
|
|
_______ |
|
_______ |
|
|
|
|
|
|
|
|
|
|
|
All the activities of the company are from continuing operations.
COWAN BROS. NI LTD
Statement of financial position
31 December 2023
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
Note |
£ |
|
£ |
|
£ |
|
£ |
|
|
|
|
|
|
|
|
|
|
Fixed assets |
|
|
|
|
|
|
|
|
|
Intangible assets |
|
12 |
- |
|
|
|
- |
|
|
Tangible assets |
|
13 |
475,192 |
|
|
|
686,893 |
|
|
|
|
|
_______ |
|
|
|
_______ |
|
|
|
|
|
|
|
475,192 |
|
|
|
686,893 |
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
Stocks |
|
14 |
4,677,695 |
|
|
|
3,430,192 |
|
|
Debtors: |
|
|
|
|
|
|
|
|
|
|
Amounts falling due within one year |
15 |
844,527 |
|
|
|
545,129 |
|
|
Cash at bank and in hand |
|
|
958,591 |
|
|
|
1,182,155 |
|
|
|
|
|
_______ |
|
|
|
_______ |
|
|
|
|
|
6,480,813 |
|
|
|
5,157,476 |
|
|
Creditors: amounts falling due |
|
|
|
|
|
|
|
|
|
within one year |
|
16 |
(
3,058,903) |
|
|
|
(
2,772,611) |
|
|
|
|
|
_______ |
|
|
|
_______ |
|
|
Net current assets |
|
|
|
|
3,421,910 |
|
|
|
2,384,865 |
|
|
|
|
|
_______ |
|
|
|
_______ |
Total assets less current liabilities |
|
|
|
|
3,897,102 |
|
|
|
3,071,758 |
|
|
|
|
|
|
|
|
|
|
Creditors: amounts falling due |
|
|
|
|
|
|
|
|
|
after more than one year |
|
17 |
|
|
(
82,934) |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Provisions for liabilities |
|
18 |
|
|
(
86,120) |
|
|
|
(
111,392) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______ |
|
|
|
_______ |
Net assets |
|
|
|
|
3,728,048 |
|
|
|
2,960,366 |
|
|
|
|
|
_______ |
|
|
|
_______ |
|
|
|
|
|
|
|
|
|
|
Capital and reserves |
|
|
|
|
|
|
|
|
|
Called up share capital |
|
22 |
|
|
300 |
|
|
|
100 |
Profit and loss account |
|
|
|
|
3,727,748 |
|
|
|
2,960,266 |
|
|
|
|
|
_______ |
|
|
|
_______ |
Shareholders funds |
|
|
|
|
3,728,048 |
|
|
|
2,960,366 |
|
|
|
|
|
_______ |
|
|
|
_______ |
|
|
|
|
|
|
|
|
|
|
These financial statements were approved by the
board of directors
and authorised for issue on
12 August 2024
, and are signed on behalf of the board by:
George Oliver Cowan
Director
Company registration number:
NI607675
COWAN BROS. NI LTD
Statement of changes in equity
Year ended 31 December 2023
|
|
Called up share capital |
|
Profit and loss account |
Total |
|
|
|
|
|
|
|
£ |
|
£ |
£ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2022 |
|
100 |
|
1,972,991 |
1,973,091 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year |
|
|
|
996,275 |
996,275 |
|
|
|
|
|
|
|
_______ |
|
_______ |
_______ |
|
|
|
|
|
Total comprehensive income for the year |
|
- |
|
996,275 |
996,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid and payable |
|
|
|
(
9,000) |
(
9,000) |
|
|
|
|
|
|
|
_______ |
|
_______ |
_______ |
|
|
|
|
|
Total investments by and distributions to owners |
|
- |
|
(
9,000) |
(
9,000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______ |
|
_______ |
_______ |
|
|
|
|
|
At 31 December 2022 and 1 January 2023 |
|
100 |
|
2,960,266 |
2,960,366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year |
|
|
|
842,652 |
842,652 |
|
|
|
|
|
|
|
_______ |
|
_______ |
_______ |
|
|
|
|
|
Total comprehensive income for the year |
|
- |
|
842,652 |
842,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issue of bonus shares |
|
200 |
|
- |
200 |
|
|
|
|
|
Dividends paid and payable |
|
|
|
(
75,170) |
(
75,170) |
|
|
|
|
|
|
|
_______ |
|
_______ |
_______ |
|
|
|
|
|
Total investments by and distributions to owners |
|
200 |
|
(
75,170) |
(
74,970) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______ |
|
_______ |
_______ |
|
|
|
|
|
At 31 December 2023 |
|
300 |
|
3,727,748 |
3,728,048 |
|
|
|
|
|
|
|
_______ |
|
_______ |
_______ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COWAN BROS. NI LTD
Statement of cash flows
Year ended 31 December 2023
|
|
2023 |
|
2022 |
|
|
|
£ |
|
£ |
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
Profit for the financial year |
|
842,652 |
|
996,275 |
|
|
|
|
|
|
|
Adjustments for: |
|
|
|
|
|
Depreciation of tangible assets |
|
215,156 |
|
250,600 |
|
Government grant income |
|
- |
|
(
2,229) |
|
Interest payable and similar expenses |
|
4,574 |
|
3,282 |
|
Gain/(loss) on disposal of tangible assets |
|
(
17,248) |
|
- |
|
Tax on profit |
|
279,398 |
|
216,190 |
|
|
|
|
|
|
|
Changes in: |
|
|
|
|
|
Stocks |
|
(
1,247,503) |
|
338,714 |
|
Trade and other debtors |
|
(
299,398) |
|
554,759 |
|
Trade and other creditors |
|
241,009 |
|
(
685,025) |
|
|
|
_______ |
|
_______ |
|
Cash generated from operations |
|
18,640 |
|
1,672,566 |
|
|
|
|
|
|
|
Interest paid |
|
(
4,574) |
|
(
3,282) |
|
Tax paid |
|
(
259,200) |
|
(
66,000) |
|
|
|
_______ |
|
_______ |
|
Net cash (used in)/from operating activities |
|
(
245,134) |
|
1,603,284 |
|
|
|
_______ |
|
_______ |
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
Purchase of tangible assets |
|
(
86,333) |
|
(
106,520) |
|
Proceeds from sale of tangible assets |
|
100,126 |
|
- |
|
|
|
_______ |
|
_______ |
|
Net cash from/(used in) investing activities |
|
13,793 |
|
(
106,520) |
|
|
|
_______ |
|
_______ |
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
Proceeds from borrowings |
|
(
20,116) |
|
64,262 |
|
Government grant income |
|
- |
|
2,229 |
|
Payment of finance lease liabilities |
|
103,063 |
|
(
42,193) |
|
Equity dividends paid |
|
(
75,170) |
|
(
9,000) |
|
|
|
_______ |
|
_______ |
|
Net cash from financing activities |
|
7,777 |
|
15,298 |
|
|
|
_______ |
|
_______ |
|
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents |
|
(
223,564) |
|
1,512,062 |
|
Cash and cash equivalents at beginning of year |
|
1,182,155 |
|
(329,907) |
|
|
|
_______ |
|
_______ |
|
Cash and cash equivalents at end of year |
|
958,591 |
|
1,182,155 |
|
|
|
_______ |
|
_______ |
|
|
|
|
|
|
|
COWAN BROS. NI LTD
Notes to the financial statements
Year ended 31 December 2023
1.
General information
The company is a private company limited by shares, registered in Northern Ireland (Registration No.
NI607675
). The address of the registered office is Cowan Bros. NI Ltd, 2 Carrakeel Drive, Maydown Industrial Estate, Co. Londonderry, BT47 6UQ.
2.
Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3.
Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis.The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
In applying company accounting policies the directors are required to make judgements and estimates on an ongoing basis about the carrying value of assets and liabilities. If revision is required the revision is recognised in that period together with future periods if necessary. The depreciation charge in respect of tangible fixed assets is based on the estimated useful life of each group of assets. Revision of estimated useful life of each grouping will affect the estimates charged in the financial statements.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. 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 capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
|
|
|
|
Goodwill |
- |
25 % |
straight line |
|
|
|
|
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
|
|
|
|
|
|
Short leasehold property |
- |
10 % |
straight line |
|
Plant and machinery |
- |
20 % |
straight line |
|
Motor vehicles |
- |
25 % |
straight line |
|
|
|
|
|
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell on a first in first out basis. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition. Provision is made for damaged, obsolete and slow moving stock whre appropriate.
Hire purchase and finance leases
Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.Government grants are recognised using the accrual model.Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset.Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4.
Turnover
Turnover arises from:
|
|
|
2023 |
2022 |
|
|
|
£ |
£ |
|
Sale of goods |
|
18,642,560 |
18,229,328 |
|
Commissions |
|
34,175 |
62,201 |
|
|
|
_______ |
_______ |
|
|
|
18,676,735 |
18,291,529 |
|
|
|
_______ |
_______ |
|
|
|
|
|
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5.
Other operating income
|
|
|
2023 |
2022 |
|
|
|
£ |
£ |
|
Rental income |
|
63,180 |
51,410 |
|
Government grant income |
|
- |
2,229 |
|
Other operating income |
|
575 |
15,710 |
|
|
|
_______ |
_______ |
|
|
|
63,755 |
69,349 |
|
|
|
_______ |
_______ |
|
|
|
|
|
6.
Operating profit
Operating profit is stated after charging/(crediting):
|
|
|
|
2023 |
2022 |
|
|
|
|
£ |
£ |
|
Depreciation of tangible assets |
|
|
215,156 |
250,600 |
|
(Gain)/loss on disposal of tangible assets |
|
|
(
17,248) |
- |
|
Impairment of trade debtors |
|
|
3,139 |
21,640 |
|
Foreign exchange differences |
|
|
1,275 |
4,534 |
|
Fees payable for the audit of the financial statements |
|
|
9,000 |
8,000 |
|
|
|
|
_______ |
_______ |
|
|
|
|
|
|
7.
Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
|
|
|
2023 |
2022 |
|
Selling / Workshop staff |
|
28 |
28 |
|
Administrative staff |
|
5 |
5 |
|
|
|
_______ |
_______ |
|
|
|
33 |
33 |
|
|
|
_______ |
_______ |
|
|
|
|
|
The aggregate payroll costs incurred during the year were:
|
|
|
2023 |
2022 |
|
|
|
£ |
£ |
|
Wages and salaries |
|
1,018,350 |
993,094 |
|
Social security costs |
|
96,842 |
94,705 |
|
Other pension costs |
|
13,588 |
16,595 |
|
|
|
_______ |
_______ |
|
|
|
1,128,780 |
1,104,394 |
|
|
|
_______ |
_______ |
|
|
|
|
|
8.
Directors remuneration
The directors aggregate remuneration in respect of qualifying services was:
|
|
|
2023 |
2022 |
|
|
|
£ |
£ |
|
Remuneration |
|
36,000 |
36,000 |
|
|
|
_______ |
_______ |
|
|
|
|
|
9.
Interest payable and similar expenses
|
|
|
|
2023 |
2022 |
|
|
|
|
£ |
£ |
|
Bank loans and overdrafts |
|
|
3,351 |
1,209 |
|
Other loans made to the company: |
|
|
|
|
|
|
Finance leases and hire purchase contracts |
|
1,223 |
2,073 |
|
|
|
|
_______ |
_______ |
|
|
|
|
4,574 |
3,282 |
|
|
|
|
_______ |
_______ |
|
|
|
|
|
|
10.
Tax on profit
Major components of tax expense
|
|
|
2023 |
2022 |
|
|
|
£ |
£ |
|
Current tax: |
|
|
|
|
UK current tax expense |
|
302,127 |
257,890 |
|
Adjustments in respect of previous periods |
|
2,543 |
- |
|
|
|
_______ |
_______ |
|
|
|
|
|
|
Deferred tax: |
|
|
|
|
Origination and reversal of timing differences |
|
(
25,272) |
(
41,700) |
|
|
|
_______ |
_______ |
|
Tax on profit |
|
279,398 |
216,190 |
|
|
|
_______ |
_______ |
|
|
|
|
|
Reconciliation of tax expense
The tax assessed on the profit for the year is higher than (2022: lower than) the
standard rate of corporation tax in the UK
of
23.50
% (2022: 19.00%).
|
|
|
2023 |
2022 |
|
|
|
£ |
£ |
|
Profit before taxation |
|
1,122,050 |
1,212,465 |
|
|
|
_______ |
_______ |
|
|
|
|
|
|
Profit multiplied by rate of tax |
|
263,682 |
230,368 |
|
Adjustments in respect of prior periods |
|
2,543 |
- |
|
Effect of expenses not deductible for tax purposes |
|
235 |
570 |
|
Effect of capital allowances and depreciation |
|
12,938 |
(
14,748) |
|
|
|
_______ |
_______ |
|
Tax on profit |
|
279,398 |
216,190 |
|
|
|
_______ |
_______ |
|
|
|
|
|
11.
Dividends
Equity dividends
|
|
|
2023 |
2022 |
|
|
|
£ |
£ |
|
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year) |
|
75,170 |
9,000 |
|
|
|
_______ |
_______ |
|
|
|
|
|
12.
Intangible assets
|
|
Goodwill |
Total |
|
|
|
|
|
|
£ |
£ |
|
|
|
|
|
Cost |
|
|
|
|
|
|
|
At 1 January 2023 and 31 December 2023 |
820,000 |
820,000 |
|
|
|
|
|
|
_______ |
_______ |
|
|
|
|
|
Amortisation |
|
|
|
|
|
|
|
At 1 January 2023 and 31 December 2023 |
820,000 |
820,000 |
|
|
|
|
|
|
_______ |
_______ |
|
|
|
|
|
Carrying amount |
|
|
|
|
|
|
|
At 31 December 2023 |
- |
- |
|
|
|
|
|
|
_______ |
_______ |
|
|
|
|
|
At 31 December 2022 |
- |
- |
|
|
|
|
|
|
_______ |
_______ |
|
|
|
|
|
|
|
|
|
|
|
|
13.
Tangible assets
|
|
Short leasehold property |
Plant and machinery |
Motor vehicles |
Total |
|
|
|
|
|
£ |
£ |
£ |
£ |
|
|
|
|
Cost |
|
|
|
|
|
|
|
|
At 1 January 2023 |
167,153 |
604,034 |
646,046 |
1,417,233 |
|
|
|
|
Additions |
- |
- |
86,333 |
86,333 |
|
|
|
|
Disposals |
- |
- |
(
284,692) |
(
284,692) |
|
|
|
|
|
_______ |
_______ |
_______ |
_______ |
|
|
|
|
At 31 December 2023 |
167,153 |
604,034 |
447,687 |
1,218,874 |
|
|
|
|
|
_______ |
_______ |
_______ |
_______ |
|
|
|
|
Depreciation |
|
|
|
|
|
|
|
|
At 1 January 2023 |
16,660 |
241,139 |
472,541 |
730,340 |
|
|
|
|
Charge for the year |
8,330 |
115,968 |
90,858 |
215,156 |
|
|
|
|
Disposals |
- |
- |
(
201,814) |
(
201,814) |
|
|
|
|
|
_______ |
_______ |
_______ |
_______ |
|
|
|
|
At 31 December 2023 |
24,990 |
357,107 |
361,585 |
743,682 |
|
|
|
|
|
_______ |
_______ |
_______ |
_______ |
|
|
|
|
Carrying amount |
|
|
|
|
|
|
|
|
At 31 December 2023 |
142,163 |
246,927 |
86,102 |
475,192 |
|
|
|
|
|
_______ |
_______ |
_______ |
_______ |
|
|
|
|
At 31 December 2022 |
150,493 |
362,895 |
173,505 |
686,893 |
|
|
|
|
|
_______ |
_______ |
_______ |
_______ |
|
|
|
|
|
|
|
|
|
|
|
|
Obligations under finance leases
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
|
|
|
|
|
|
|
|
|
|
|
Motor vehicles |
|
|
|
|
|
|
|
|
£ |
|
|
|
|
|
|
|
At 31 December 2023 |
- |
|
|
|
|
|
|
|
|
_______ |
|
|
|
|
|
|
|
At 31 December 2022 |
61,715 |
|
|
|
|
|
|
|
|
_______ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14.
Stocks
|
|
|
2023 |
2022 |
|
|
|
£ |
£ |
|
Stocks for resale |
|
4,677,695 |
3,430,192 |
|
|
|
_______ |
_______ |
|
|
|
|
|
15.
Debtors
Debtors falling due within one year are as follows:
|
|
|
2023 |
2022 |
|
|
|
£ |
£ |
|
Trade debtors |
|
782,700 |
465,275 |
|
Prepayments and accrued income |
|
11,324 |
10,999 |
|
Other debtors |
|
50,503 |
68,855 |
|
|
|
_______ |
_______ |
|
|
|
844,527 |
545,129 |
|
|
|
_______ |
_______ |
|
|
|
|
|
16.
Creditors: amounts falling due within one year
|
|
|
2023 |
2022 |
|
|
|
£ |
£ |
|
Trade creditors |
|
2,144,384 |
1,946,192 |
|
Corporation tax |
|
302,861 |
257,391 |
|
Social security and other taxes |
|
157,923 |
200,562 |
|
Obligations under finance leases |
|
115,289 |
95,160 |
|
Director loan accounts |
|
43,946 |
64,262 |
|
Other creditors |
|
294,500 |
209,044 |
|
|
|
_______ |
_______ |
|
|
|
3,058,903 |
2,772,611 |
|
|
|
_______ |
_______ |
|
|
|
|
|
Bank borrowings are secured by: A fixed and floating charge over all company assets
The directors account is unsecured and interest free.
17.
Creditors: amounts falling due after more than one year
|
|
|
2023 |
2022 |
|
|
|
£ |
£ |
|
Obligations under finance leases |
|
82,934 |
- |
|
|
|
_______ |
_______ |
|
|
|
|
|
18.
Provisions
|
|
Deferred tax (note 19) |
Total |
|
|
|
|
|
£ |
£ |
|
|
|
|
At 1 January 2023 |
111,392 |
111,392 |
|
|
|
|
Additions |
(
25,272) |
(
25,272) |
|
|
|
|
|
_______ |
_______ |
|
|
|
|
At 31 December 2023 |
86,120 |
86,120 |
|
|
|
|
|
_______ |
_______ |
|
|
|
|
|
|
|
|
|
|
19.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
|
|
|
2023 |
2022 |
|
|
|
£ |
£ |
|
Included in provisions (note 18) |
|
86,120 |
111,392 |
|
|
|
_______ |
_______ |
|
|
|
|
|
The deferred tax account consists of the tax effect of timing differences in respect of:
|
|
|
2023 |
2022 |
|
|
|
£ |
£ |
|
Accelerated capital allowances |
|
86,120 |
111,392 |
|
|
|
_______ |
_______ |
|
|
|
|
|
20.
Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £
13,588
(2022: £
16,595
).
21.
Government grants
The amounts recognised in the financial statements for government grants are as follows:
|
|
|
2023 |
2022 |
|
|
|
£ |
£ |
|
Recognised in other operating income: |
|
|
|
|
Government grants released to profit or loss |
|
- |
2,229 |
|
|
|
_______ |
_______ |
|
|
|
|
|
22.
Called up share capital
Issued and called up
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
No |
|
£ |
|
No |
|
£ |
|
Ordinary shares of £
1.00 each |
|
100 |
|
100 |
|
100 |
|
100 |
|
Non participating ordinary shares of £
1.00 each |
|
200 |
|
200 |
|
- |
|
- |
|
|
|
_______ |
|
_______ |
|
_______ |
|
_______ |
|
|
|
300 |
|
300 |
|
100 |
|
100 |
|
|
|
_______ |
|
_______ |
|
_______ |
|
_______ |
|
|
|
|
|
|
|
|
|
|
23.
Analysis of changes in net debt
|
|
At 1 January 2023 |
Cash flows |
At 31 December 2023 |
|
|
|
|
|
£ |
£ |
£ |
|
|
|
|
Cash and cash equivalents |
1,182,155 |
(223,564) |
958,591 |
|
|
|
|
Debt due within one year |
(159,422) |
187 |
(159,235) |
|
|
|
|
Debt due after one year |
- |
(82,934) |
(82,934) |
|
|
|
|
|
_______ |
_______ |
_______ |
|
|
|
|
|
1,022,733 |
(
306,311) |
716,422 |
|
|
|
|
|
_______ |
_______ |
_______ |
|
|
|
|
|
|
|
|
|
|
|
24.
Controlling party
George Oliver Cowan
, director & major shareholder, is considered to be the Company's controlling interest.