Company Registration No. 10296424 (England and Wales)
NORTHWOOD CONSUMER LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
Star House
Star Hill
Rochester
Kent
ME1 1UX
NORTHWOOD CONSUMER LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Statement of financial position
11 - 12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 28
NORTHWOOD CONSUMER LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr P Fecher
Mr M Fecher
Mr A Fecher
Mr P King
Mr C Davies
Secretary
Mr P King
Company number
10296424
Registered office
Northwood House
Stafford Park 10
Telford
Shropshire
TF3 3AB
Auditor
TC Group
Star House
Star Hill
Rochester
Kent
ME1 1UX
NORTHWOOD CONSUMER LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

 

Introduction

 

During the year under review, the Company’s principal trading activity has been the manufacture, conversion and distribution of disposable hygiene products for the retail and cash & carry markets. The Company is committed to its plan of product enhancement, environmental sustainability and profitable growth in order to drive operational efficiency at its manufacturing site.

 

Northwood Consumer Products Ltd [NCL] continues to promote and enhance its own brands of ‘Freedom’, ‘Hush’ and ‘Rhino’ together with providing private label products to the discounter retail market.

Fair review of the business

 

As noted in last year’s report, the combination of lower operating costs and increased selling prices had helped improve performance into Q1 of FY23. This continued through the remainder of the year alongside a softening of the economic headwinds from the previous 3 years caused by covid lockdowns, energy crisis, Ukraine war, multiple interest rate hikes and general inflationary pressures.

 

Average selling prices were up by 10% alongside an increase in volume of 20% which have both compounded the cost reduction measures in previous years, giving a healthy turnaround in performance.

 

In 2023 NCL turnover was £19.5m (2022 £14.4m), gross profit was £5.0m/25.8% (2022 £0.5m/3.8%) and it’s pleasing to report an operating profit of £2.4m (2022 loss of £1.9m).

 

During Q4 it was agreed that the Trade/Cash & Carry customers would transfer to Northwood Hygiene Products as part of a wider plan to grow that sector under the NHP umbrella. Production of the key brands would remain at NCL’s Birmingham site.

Principal risks and uncertainties

The Company does not operate in a high‑risk environment and the number and range of customers supplied ensures that there is not an over‑reliance on any specific customer, although the nature of commercial markets means that the business continually needs to focus on individual customer performance and profitability as customers seek maximum value from their partners. Supply chain risk is significantly reduced due to the relationship with associated group companies who are able to manufacture and supply much of the paper consumed by the business’ operations. The company is committed to sustainable sourcing of parent reels and has recently started supplying FSC accredited product.

 

Credit risk is mitigated by strict application of our credit policy and regular review of accounts that are perceived as higher risk. The company has a credit insurance policy in place to minimise the impact of any bad debt experiences.

 

The Company using agent to source parent reels and mitigates any currency exposure by paying in Sterling.

 

NORTHWOOD CONSUMER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Key performance indicators

By order of the board

Mr P King
Secretary
7 September 2024
NORTHWOOD CONSUMER 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 10.

No ordinary dividends were paid. The directors do not recommend payment of a final 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 P Fecher
Mr M Fecher
Mr A Fecher
Mr P King
Mr C Davies
Auditor

TC Group were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006.

Statement of directors' responsibilities

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 company and of the profit or loss of the company 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 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 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 company’s auditor 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 company’s auditor is aware of that information.

NORTHWOOD CONSUMER LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
By order of the board
Mr P King
Secretary
7 September 2024
NORTHWOOD CONSUMER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NORTHWOOD CONSUMER LIMITED
- 6 -
Opinion

We have audited the financial statements of Northwood Consumer Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the 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 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 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.

NORTHWOOD CONSUMER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NORTHWOOD CONSUMER 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:

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

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

 

NORTHWOOD CONSUMER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NORTHWOOD CONSUMER LIMITED
- 8 -

Our approach was as follows:

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 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 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.

NORTHWOOD CONSUMER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NORTHWOOD CONSUMER LIMITED
- 9 -

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.

Sally Meah FCCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
25 September 2024
Star House
Star Hill
Rochester
Kent
ME1 1UX
NORTHWOOD CONSUMER LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
19,461,968
14,431,846
Cost of sales
(14,439,318)
(13,887,533)
Gross profit
5,022,650
544,313
Administrative expenses
(2,637,253)
(2,467,201)
Operating profit/(loss)
2,385,397
(1,922,888)
Interest payable and similar expenses
6
(321,666)
(176,945)
Profit/(loss) before taxation
2,063,731
(2,099,833)
Tax on profit/(loss)
7
-
0
-
0
Profit/(loss) for the financial year
2,063,731
(2,099,833)

The notes on pages 15 to 28 form part of these financial statements.

NORTHWOOD CONSUMER LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
8
139,061
192,891
Other intangible assets
8
17,954
24,904
Total intangible assets
157,015
217,795
Tangible assets
9
6,463,633
6,936,457
6,620,648
7,154,252
Current assets
Stocks
10
1,529,956
1,537,500
Debtors
11
5,947,410
3,869,509
Cash at bank and in hand
125,251
119,890
7,602,617
5,526,899
Creditors: amounts falling due within one year
12
(11,875,572)
(11,162,786)
Net current liabilities
(4,272,955)
(5,635,887)
Total assets less current liabilities
2,347,693
1,518,365
Creditors: amounts falling due after more than one year
13
(1,164,740)
(2,399,143)
Net assets/(liabilities)
1,182,953
(880,778)
Capital and reserves
Called up share capital
16
5,000,100
5,000,100
Profit and loss reserves
(3,817,147)
(5,880,878)
Total equity
1,182,953
(880,778)

The notes on pages 15 to 28 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

NORTHWOOD CONSUMER LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 5 September 2024 and are signed on its behalf by:
Mr C Davies
Director
Company registration number 10296424 (England and Wales)
NORTHWOOD CONSUMER LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
5,000,100
(3,781,045)
1,219,055
Year ended 31 December 2022:
Loss and total comprehensive income
-
(2,099,833)
(2,099,833)
Balance at 31 December 2022
5,000,100
(5,880,878)
(880,778)
Year ended 31 December 2023:
Profit and total comprehensive income
-
2,063,731
2,063,731
Balance at 31 December 2023
5,000,100
(3,817,147)
1,182,953

The notes on pages 15 to 28 form part of these financial statements.

NORTHWOOD CONSUMER LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
939,715
320,867
Interest paid
(321,666)
(176,945)
Net cash inflow from operating activities
618,049
143,922
Financing activities
Repayment of borrowings
621,714
(100,514)
Repayment of bank loans
(1,234,402)
(168,907)
Net cash used in financing activities
(612,688)
(269,421)
Net increase/(decrease) in cash and cash equivalents
5,361
(125,499)
Cash and cash equivalents at beginning of year
119,890
245,389
Cash and cash equivalents at end of year
125,251
119,890

The notes on pages 15 to 28 form part of these financial statements.

NORTHWOOD CONSUMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Northwood Consumer Limited is a private company limited by shares incorporated in England and Wales. The registered office is Northwood House, Stafford Park 10, Telford, Shropshire, TF3 3AB. The trading address is Electra Park, Electric Avenue, Birmingham, B6 7EB.

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.

1.2
Going concern

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

1.3
Turnover

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

 

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

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

NORTHWOOD CONSUMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

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

 

1.5
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.

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:

Other intangible fixed assets
10 years straight line
1.6
Tangible fixed assets

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

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

Leasehold improvements
4.6 years straight line
Plant and equipment
20 and 5 years straight line
Computer Equipment
3 years straight line

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 credited or charged to profit or loss.

NORTHWOOD CONSUMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.7
Impairment of fixed assets

At each reporting period end date, the company 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.

1.8
Stocks

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

 

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

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

1.9
Financial instruments

The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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

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

NORTHWOOD CONSUMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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 company after deducting all of its liabilities.

Basic financial liabilities

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

 

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

 

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

NORTHWOOD CONSUMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Other financial liabilities

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company 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 company.

1.11
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 income statement 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 company’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 income statement, 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 when the company has 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.

NORTHWOOD CONSUMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.12
Retirement benefits

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

1.13
Leases

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

1.14
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 company’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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Leases

Management exercises judgement in determining the classification of leases as finance or operating leases at the inception of the lease. Management considers the likelihood of exercising the break clauses or extension options in determining the lease term. Where the lease term constitutes substantially all the economic life of the asset, or where the present value of minimum lease payments amount to substantially all of the fair value of the property, the lease is classified as a finance lease. All other leases are classified as operating leases.

NORTHWOOD CONSUMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -
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 goodwill

Management tests annually whether goodwill has suffered any impairment through estimating the value in use of cash-generating units to which goodwill has been allocated.

Depreciation of Property, plant and equipment

Depreciation is provided so as to write down the assets to their residual values over their estimated useful lives. The selection of these residual values and estimated lives requires the exercise of management judgement.

Impairment of assets

Where there are indicators of impairment, management performs and impairment test. Recoverable amounts for cash-generating units are the higher of fair value less costs of disposal, and value in use.

3
Turnover
2023
2022
£
£
Turnover analysed by geographical market
UK
19,446,550
14,379,563
Europe
15,418
52,283
19,461,968
14,431,846
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
13,915
15,430
NORTHWOOD CONSUMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
5
Employees

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

2023
2022
Number
Number
40
43

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,354,796
1,456,398
Social security costs
112,680
98,547
Pension costs
50,273
59,439
1,517,749
1,614,384
6
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
321,666
176,945
NORTHWOOD CONSUMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
7
Taxation

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

2023
2022
£
£
Profit/(loss) before taxation
2,063,731
(2,099,833)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
515,933
(398,968)
Tax effect of expenses that are not deductible in determining taxable profit
(46,295)
16,953
Tax effect of utilisation of tax losses not previously recognised
(428,073)
-
0
Unutilised tax losses carried forward
-
0
452,855
Permanent capital allowances in excess of depreciation
(41,565)
(70,840)
Taxation charge for the year
-
-
8
Intangible fixed assets
Goodwill
Other intangible fixed assets
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
538,301
69,500
607,801
Amortisation and impairment
At 1 January 2023
345,410
44,596
390,006
Amortisation charged for the year
53,830
6,950
60,780
At 31 December 2023
399,240
51,546
450,786
Carrying amount
At 31 December 2023
139,061
17,954
157,015
At 31 December 2022
192,891
24,904
217,795
NORTHWOOD CONSUMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
9
Tangible fixed assets
Leasehold improvements
Plant and equipment
Computer Equipment
Total
£
£
£
£
Cost
At 1 January 2023 and 31 December 2023
131,303
8,190,017
89,341
8,410,661
Depreciation and impairment
At 1 January 2023
91,305
1,327,320
55,579
1,474,204
Depreciation charged in the year
31,857
429,068
11,899
472,824
At 31 December 2023
123,162
1,756,388
67,478
1,947,028
Carrying amount
At 31 December 2023
8,141
6,433,629
21,863
6,463,633
At 31 December 2022
39,998
6,862,697
33,762
6,936,457
10
Stocks
2023
2022
£
£
Raw materials and consumables
858,882
1,006,590
Finished goods and goods for resale
671,074
530,910
1,529,956
1,537,500
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,899,895
2,953,542
Unpaid share capital
100
100
Other debtors
1,822,868
375,045
Prepayments and accrued income
224,547
540,822
5,947,410
3,869,509
NORTHWOOD CONSUMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
12
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
14
1,164,666
1,164,665
Other borrowings
14
2,455,779
1,834,065
Trade creditors
904,367
2,673,853
Taxation and social security
702,198
156,892
Other creditors
6,395,334
5,162,158
Accruals and deferred income
253,228
171,153
11,875,572
11,162,786
13
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
14
1,164,740
2,399,143

RBS Invoice Finance Limited hold a fixed and floating charge over the assets of the company dated 2 September 2016 as security for the above loans.

 

14
Loans and overdrafts
2023
2022
£
£
Bank loans
2,329,406
3,563,808
Other loans
2,455,779
1,834,065
4,785,185
5,397,873
Payable within one year
3,620,445
2,998,730
Payable after one year
1,164,740
2,399,143
NORTHWOOD CONSUMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
50,273
59,439

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary shares of £1 each
5,000,100
5,000,100
5,000,100
5,000,100
17
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
640,688
549,116
Between two and five years
2,025,000
134,438
In over five years
168,750
-
0
2,834,438
683,554
NORTHWOOD CONSUMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
18
Related party transactions
Transactions with related parties

During the year under review, the following transactions took place with entities over which the entity has

significant influence over;

Sales of goods and other recharges totalling £2,663,511 (2022 - £2,457,715);

The balance due at the year end is £596,218 (2022 - £87,541) and is included in trade debtors.

Costs of purchases and other recharges totalling £9,477,014 (2022 - £10,531,707);

The balance due at the year end is £1,399,581 (2022 - £2,318,822) and is included in trade creditors.

Rent of £0 (2022 - £160,848) was paid.

Loans of £0 (2022 - £100,000) were made;

Repayments of £375,000 (2022 - £nil) were received;

Loans of £1,299,746 (2022 - £1,110,000) were received;

 

As at 31 December 2023 £6,137,811 (2022 - £4,463,064) was due to the entities.

 

 

 

19
Cash generated from operations
2023
2022
£
£
Profit/(loss) for the year after tax
2,063,731
(2,099,833)
Adjustments for:
Finance costs
321,666
176,945
Amortisation and impairment of intangible assets
60,780
60,781
Depreciation and impairment of tangible fixed assets
472,824
480,643
Movements in working capital:
Decrease/(increase) in stocks
7,544
(412,553)
Increase in debtors
(2,077,901)
(903,876)
Increase in creditors
91,071
3,018,760
Cash generated from operations
939,715
320,867
NORTHWOOD CONSUMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
20
Analysis of changes in net debt
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
119,890
5,361
125,251
Borrowings excluding overdrafts
(5,397,873)
612,688
(4,785,185)
(5,277,983)
618,049
(4,659,934)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.210No description of principal activityMr P FecherMr M FecherMr A FecherMr C DaviesMr Chris DaviesMr P Kingfalsefalse102964242023-01-012023-12-3110296424bus:Director12023-01-012023-12-3110296424bus:Director22023-01-012023-12-3110296424bus:Director32023-01-012023-12-3110296424bus:CompanySecretaryDirector12023-01-012023-12-3110296424bus:Director42023-01-012023-12-3110296424bus:Director52023-01-012023-12-3110296424bus:CompanySecretary12023-01-012023-12-3110296424bus:RegisteredOffice2023-01-012023-12-31102964242023-12-31102964242022-01-012022-12-3110296424core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3110296424core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3110296424core:Goodwill2023-12-3110296424core:Goodwill2022-12-3110296424core:OtherResidualIntangibleAssets2023-12-3110296424core:OtherResidualIntangibleAssets2022-12-31102964242022-12-3110296424core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-12-3110296424core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-12-3110296424core:LeaseholdImprovements2023-12-3110296424core:PlantMachinery2023-12-3110296424core:ComputerEquipment2023-12-3110296424core:LeaseholdImprovements2022-12-3110296424core:PlantMachinery2022-12-3110296424core:ComputerEquipment2022-12-3110296424core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3110296424core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3110296424core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3110296424core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3110296424core:CurrentFinancialInstruments2023-12-3110296424core:CurrentFinancialInstruments2022-12-3110296424core:ShareCapital2023-12-3110296424core:ShareCapital2022-12-3110296424core:RetainedEarningsAccumulatedLosses2023-12-3110296424core:RetainedEarningsAccumulatedLosses2022-12-3110296424core:ShareCapital2021-12-3110296424core:RetainedEarningsAccumulatedLosses2021-12-311029642412023-01-012023-12-311029642412022-01-012022-12-31102964242022-12-31102964242021-12-3110296424core:Goodwill2023-01-012023-12-3110296424core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3110296424core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-01-012023-12-3110296424core:LeaseholdImprovements2023-01-012023-12-3110296424core:PlantMachinery2023-01-012023-12-3110296424core:ComputerEquipment2023-01-012023-12-3110296424core:UKTax2023-01-012023-12-3110296424core:UKTax2022-01-012022-12-3110296424core:Goodwill2022-12-3110296424core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-12-3110296424core:LeaseholdImprovements2022-12-3110296424core:PlantMachinery2022-12-3110296424core:ComputerEquipment2022-12-3110296424core:Non-currentFinancialInstruments2023-12-3110296424core:Non-currentFinancialInstruments2022-12-3110296424core:WithinOneYear2023-12-3110296424core:WithinOneYear2022-12-3110296424core:BetweenTwoFiveYears2023-12-3110296424core:BetweenTwoFiveYears2022-12-3110296424core:MoreThanFiveYears2023-12-3110296424core:MoreThanFiveYears2022-12-3110296424bus:PrivateLimitedCompanyLtd2023-01-012023-12-3110296424bus:FRS1022023-01-012023-12-3110296424bus:Audited2023-01-012023-12-3110296424bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP