REGISTERED NUMBER: |
E J ORR LIMITED |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
REGISTERED NUMBER: |
E J ORR LIMITED |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
E J ORR LIMITED (REGISTERED NUMBER: 01725195) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 | to | 6 |
Income Statement | 7 |
Other Comprehensive Income | 8 |
Statement of Financial Position | 9 |
Statement of Changes in Equity | 10 |
Statement of Cash Flows | 11 |
Notes to the Statement of Cash Flows | 12 |
Notes to the Financial Statements | 13 | to | 21 |
E J ORR LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
14 London Road |
Newark |
Nottinghamshire |
NG24 1TW |
E J ORR LIMITED (REGISTERED NUMBER: 01725195) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
After the challenges of the previous two years, arising from the pandemic, the company has faced new challenges in 2022 with High Street retailers coming under increased pressure. The company has however prospered with strong relationships being built with both new and existing customers allowing sales to decrease by nearly 19% to over £21m. |
The company's agility has allowed it to profit from the changed trading environment that exists in the post-COVID and post-Brexit world. Improved shipping rates, rationalisation of supply chains and taking advantage of the globalisation of the company's customer base have all helped to improve margins and enhance profitability. |
The company continues to build relationships with its customers and key suppliers and is looking forward to further growth in business during 2023. |
The Statement of Financial Position as at 31 December 2023 shows net assets have increased by £2.6M (2022: £4.2M). Gross and operating margins have remained strong. This has resulted in a retained profit for the year of £2.6M (2022: £4.3M) less a deduction for payment of dividends totalling £50K (2022: £50K). |
KEY PERFORMANCE INDICATORS |
The directors use a range of performance measures to monitor and manage the business. The performance measures are split into financial and non-financial key performance indicators as set out below: |
Profit & activity ratios: | Revenue growth/(decline) - (18.7)% (2022: 5.8%) |
Post tax profit margin - 12.1% (2022: 17.3%) |
Liquidity ratio: | Current ratio - 4.8 (2022: 4.4) |
Activity ratios: | Debtor days - 76 (2022: 52) |
Creditor days - 51 (2022: 17) |
Stock holding period days - 89 (2022: 102) |
Capital ratio: | Stock/ Capital Employed - 0.2 (2022: 0.2) |
The above KPIs are calculated and reviewed on a regular basis by the directors and used to monitor and manage the company's performance. |
Debtor days have remained stable whilst businesses recover from the pandemic. Creditor days have fallen significantly due to a larger than usual amount of goods being purchased earlier in the prior year in response to the uncertainty with Brexit. These early purchases were not required in the current year. |
FUTURE DEVELOPMENTS |
The company remains consistently profitable and there are no planned changes to the principal activities of the company in the next financial year. The directors have ambitious growth plans for markets in the UK and abroad and will seek consultancy from other industry experts to help achieve this. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors continually monitor the key risks facing the company together with assessing the controls used for managing these risks. A formal review and documentation of the principle risks facing the company is prepared and discussed with management at least annually. |
Principal risks and uncertainties facing the company are derived from the general economic climate together with ongoing competitor pressure. Foreign currency risk exposure is minimised where possible by the use of forward contracts. |
ON BEHALF OF THE BOARD: |
E J ORR LIMITED (REGISTERED NUMBER: 01725195) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the sale and brand development of socks, underwear and loungewear. |
DIVIDENDS |
Dividends of £50,000 will be distributed for the year ended 31 December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
E J ORR LIMITED |
Opinion |
We have audited the financial statements of E J Orr Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
E J ORR LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit. |
The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. |
Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and safety regulations and employment laws. |
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items. |
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. The further removed non-compliance with laws and regulations 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 with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
E J ORR LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
14 London Road |
Newark |
Nottinghamshire |
NG24 1TW |
E J ORR LIMITED (REGISTERED NUMBER: 01725195) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
REVENUE | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
3,557,443 | 5,726,145 |
Other operating income |
OPERATING PROFIT | 6 |
Interest payable and similar expenses | 8 |
PROFIT BEFORE TAXATION |
Tax on profit | 9 |
PROFIT FOR THE FINANCIAL YEAR |
E J ORR LIMITED (REGISTERED NUMBER: 01725195) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
E J ORR LIMITED (REGISTERED NUMBER: 01725195) |
STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Property, plant and equipment | 12 |
Investments | 13 |
CURRENT ASSETS |
Inventories | 14 |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 17 | ( |
) |
PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Investment in own shares | 23 | ( |
) | ( |
) |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
E J ORR LIMITED (REGISTERED NUMBER: 01725195) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up | Investment |
share | Retained | in own | Total |
capital | earnings | shares | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | ( |
) |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Interest on investment | - | 78,864 | (78,864 | ) | - |
Balance at 31 December 2022 | ( |
) |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Interest on investment | - | 97,189 | (97,189 | ) | - |
Balance at 31 December 2023 | ( |
) |
E J ORR LIMITED (REGISTERED NUMBER: 01725195) |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Finance costs paid | (97,189 | ) | (78,864 | ) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Amount withdrawn by directors | (423,312 | ) | (1,251,180 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year | 2 | 3,047,180 |
Cash and cash equivalents at end of year | 2 | 367,111 | 3,144,043 |
E J ORR LIMITED (REGISTERED NUMBER: 01725195) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance costs | 167,642 | 158,920 |
3,663,673 | 5,792,374 |
Decrease/(increase) in inventories | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 367,111 | 3,144,043 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 3,144,043 | 3,047,180 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank | 3,144,043 | (2,776,932 | ) | 367,111 |
3,144,043 | ( |
) | 367,111 |
Debt |
Debts falling due within 1 year | (500,000 | ) | 500,000 | - |
Debts falling due after 1 year | (708,333 | ) | 708,333 | - |
(1,208,333 | ) | 1,208,333 | - |
Total | 1,935,710 | (1,568,599 | ) | 367,111 |
E J ORR LIMITED (REGISTERED NUMBER: 01725195) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | GENERAL INFORMATION |
The nature of the company's operations and principal activities are detailed in the report of the directors on page three. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
2. | STATUTORY INFORMATION |
E J Orr Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. |
Revenue |
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Inventories |
Inventories are stated at the lower of cost and fair value less costs to complete and sell, after making due allowance for obsolete or slow moving items. Inventories are accounted for on a first-in-first-out basis. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
E J ORR LIMITED (REGISTERED NUMBER: 01725195) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Financial instruments |
The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
Basic financial assets are initially recognised at transaction price, 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. |
Derivative financial instruments |
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value through the income statement. |
The company uses forward exchange contracts to mitigate the company's exposure to foreign exchange risks. The fair value is determined by Barclays Bank plc. |
Critical accounting judgements and estimation uncertainty |
In the application of the company's accounting policies, management are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below. |
Inventories provision |
The company sells textiles and is subject to changing consumer demands and economic trends. As a result it is necessary to consider the recoverability of the cost of inventories and the associated provisioning required. Inventories are stated after provisions for impairment. When calculating the inventories provision, management considers the nature and condition of the inventories, as well as applying assumptions around anticipated saleability of finished goods. |
E J ORR LIMITED (REGISTERED NUMBER: 01725195) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
4. | REVENUE |
The revenue and profit before taxation are attributable to the one principal activity of the company. |
An analysis of revenue by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
Europe |
United States of America |
Rest of World | 1,104,379 | 5,236,597 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 2 | 2 |
Administration | 42 | 42 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Trademarks and licences amortisation |
Foreign exchange differences |
7. | AUDITORS' REMUNERATION |
Fees payable to the company's auditors for the audit of the company's financial statements were £23,340 (2022: £22,500). |
E J ORR LIMITED (REGISTERED NUMBER: 01725195) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Bank loan interest |
Corporation tax interest |
VAT interest |
Interest on investment in own |
shares |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Difference due to change in tax rates | (52,175 | ) | - |
Accruals | (10,000 | ) | (16,218 | ) |
Bad debt | - | (19,000 | ) |
Movement in deferred tax | (10,296 | ) | 9,490 |
Dividends | (9,138 | ) | - |
Total tax charge | 819,198 | 1,055,559 |
10. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim |
E J ORR LIMITED (REGISTERED NUMBER: 01725195) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | INTANGIBLE FIXED ASSETS |
Trademarks |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
Amortisation for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
12. | PROPERTY, PLANT AND EQUIPMENT |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
13. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
Exchange differences | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
E J ORR LIMITED (REGISTERED NUMBER: 01725195) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | INVENTORIES |
2023 | 2022 |
£ | £ |
Finished goods |
Inventories are stated after provisions for impairment of £123,837 (2022: £209,477). There is no difference between the replacement cost of the inventory and its carrying amount. |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments and accrued income |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 18) |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Other taxes and social security |
Other creditors |
Derivative liability | 5,505 | 19,911 |
Directors' loan accounts | 1,388,669 | 1,811,981 |
Accruals and deferred income |
A bank overdraft not currently in use has been secured by way of legal charges and debentures on the company's assets. |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 18) |
18. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
E J ORR LIMITED (REGISTERED NUMBER: 01725195) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
19. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
Payments recognised as an expense in the year under non-cancellable operating leases and service agreements were £202,703 (2022: £204,504). |
20. | FINANCIAL INSTRUMENTS |
The company has the following financial instruments: |
2023 | 2022 |
£ | £ |
Financial assets that are debt instruments measured at amortised cost |
Trade debtors | 4,476,839 | 3,702,770 |
Other debtors | 19,898,722 | 14,083,007 |
Financial liabilities measured at amortised cost |
Trade creditors | 1,011,197 | 813,653 |
Other creditors | 341,397 | 240,789 |
No interest income or interest expense for financial assets and financial liabilities that are not measured at fair value through the Income Statement was recognised in the periods ended 31 December 2023 and 31 December 2022. |
Derivative financial instruments measured at fair value through the Income Statement |
The company enters into forward foreign currency contracts to mitigate the exchange rate risk for certain foreign currency payables. At 31 December 2023, outstanding contracts all mature within 12 months (2022: 12 months) of the year end. The company is committed to purchase US$nil (2022: US$nil) and €nil (2022: €nil) for a fixed Sterling amount. The company is also committed to purchase £977,417 (2022: £1,669,129) for a fixed USD amount. |
At 31 December 2023 a derivative liability of £5,505 (2022: £19,911) was recognised in respect of the above foreign currency contracts. The resulting credit recognised through the Income Statement was £14,405 (2022: Credit £19,276). |
21. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 14,745 | 25,041 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Credit to Income Statement during year | ( |
) |
Balance at 31 December 2023 |
The reversal of deferred tax liabilities in the forthcoming year is not expected to be significant. |
E J ORR LIMITED (REGISTERED NUMBER: 01725195) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 44,910 | 44,910 |
Ordinary A | £1 | 1 | 1 |
Ordinary B | £1 | 9,470 | 9,470 |
54,381 | 54,381 |
All ordinary shares have full and equal voting rights. |
23. | RESERVES |
Investment |
Retained | in own |
earnings | shares | Totals |
£ | £ | £ |
At 1 January 2023 | ( |
) | 16,476,713 |
Profit for the year | - |
Dividends | ( |
) | - | ( |
) |
Interest on investment | 97,189 | (97,189 | ) | - |
At 31 December 2023 | ( |
) | 19,033,868 |
24. | RELATED PARTY DISCLOSURES |
Directors |
During the year, the company paid dividends of £50,000 (2022: £50,000) to the directors. Amounts owed by the directors to the company at the year end totalled nil (2022: nil). |
Key management personnel is considered to be the directors of the company. The compensation paid or payable to key management for employee services is disclosed in note 5 of the Financial Statements. |
Related Companies |
Purchases of £nil (2022: £nil) were made from companies in which the directors have a participating interest. In addition, payments made on behalf of these related companies and/or loans advanced and transfers totalled £5,245,259 (2022: £2,915,686). Amounts due to these companies at the year end totalled £34,402 (2022: £62,660) and amounts due from these companies at the year end totalled £18,524,880 (2022: £12,625,707). There are no terms or conditions attached to the outstanding balances. |
The company has given cross guarantees and charges over its net assets to support loans to a company in which the directors have a participating interest. |
Related Retirement Benefit Schemes |
Purchases of £98,700 (2022: £98,637) were made from a retirement benefit scheme under the control of the directors during the year. |
Employee Benefit Trust |
During the year, a loan of £902,176 (2022: £919,466) was paid into an employment benefit trust of which the directors are trustees. |
25. | ULTIMATE CONTROLLING PARTY |
The company is under the control of the directors. |
E J ORR LIMITED (REGISTERED NUMBER: 01725195) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
26. | SHARE-BASED PAYMENT TRANSACTIONS |
Certain employees of the company have been granted options over the shares in E J Orr Limited. The options are granted with a fixed exercise price and expire ten years after the date of the grant. Options for 5,499 shares are exercisable only on an exit within the scheme period. |
A reconciliation of share option movements over the year to 31 December 2023 is shown below: |
No. | Weighted average exercise price £ |
B/f | 5,499 | 27 |
Granted | - | - |
Forfeited | - | - |
Exercised | - | - |
Expired | - | - |
Outstanding at 31 December 2023 | 5,499 | 27 |
No options were exercisable at 31 December 2023. |