Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31falseNo description of principal activity2023-01-015658falsefalsefalse 05556432 2023-01-01 2023-12-31 05556432 2022-01-01 2022-12-31 05556432 2023-12-31 05556432 2022-12-31 05556432 2022-01-01 05556432 5 2023-01-01 2023-12-31 05556432 5 2022-01-01 2022-12-31 05556432 d:CompanySecretary1 2023-01-01 2023-12-31 05556432 d:Director1 2023-01-01 2023-12-31 05556432 d:Director2 2023-01-01 2023-12-31 05556432 d:Director2 2023-12-31 05556432 d:RegisteredOffice 2023-01-01 2023-12-31 05556432 e:Buildings e:ShortLeaseholdAssets 2023-01-01 2023-12-31 05556432 e:Buildings e:ShortLeaseholdAssets 2023-12-31 05556432 e:Buildings e:ShortLeaseholdAssets 2022-12-31 05556432 e:PlantMachinery 2023-01-01 2023-12-31 05556432 e:PlantMachinery 2023-12-31 05556432 e:PlantMachinery 2022-12-31 05556432 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 05556432 e:FurnitureFittings 2023-01-01 2023-12-31 05556432 e:FurnitureFittings 2023-12-31 05556432 e:FurnitureFittings 2022-12-31 05556432 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 05556432 e:OfficeEquipment 2023-01-01 2023-12-31 05556432 e:OfficeEquipment 2023-12-31 05556432 e:OfficeEquipment 2022-12-31 05556432 e:OfficeEquipment e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 05556432 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 05556432 e:CopyrightsPatentsTrademarksServiceOperatingRights 2023-12-31 05556432 e:CopyrightsPatentsTrademarksServiceOperatingRights 2022-12-31 05556432 e:FreeholdInvestmentProperty 2023-01-01 2023-12-31 05556432 e:FreeholdInvestmentProperty 2023-12-31 05556432 e:FreeholdInvestmentProperty 2022-12-31 05556432 e:CurrentFinancialInstruments 2023-12-31 05556432 e:CurrentFinancialInstruments 2022-12-31 05556432 e:Non-currentFinancialInstruments 2023-12-31 05556432 e:Non-currentFinancialInstruments 2022-12-31 05556432 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 05556432 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 05556432 e:Non-currentFinancialInstruments e:AfterOneYear 2023-12-31 05556432 e:Non-currentFinancialInstruments e:AfterOneYear 2022-12-31 05556432 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2023-12-31 05556432 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2022-12-31 05556432 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2023-12-31 05556432 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2022-12-31 05556432 e:ReportableOperatingSegment1 2023-01-01 2023-12-31 05556432 e:ReportableOperatingSegment1 2022-01-01 2022-12-31 05556432 f:UnitedKingdom 2023-01-01 2023-12-31 05556432 f:UnitedKingdom 2022-01-01 2022-12-31 05556432 f:RestEuropeOutsideUK 2023-01-01 2023-12-31 05556432 f:RestEuropeOutsideUK 2022-01-01 2022-12-31 05556432 e:UKTax 2023-01-01 2023-12-31 05556432 e:UKTax 2022-01-01 2022-12-31 05556432 e:ShareCapital 2023-12-31 05556432 e:ShareCapital 2022-12-31 05556432 e:SharePremium 2023-01-01 2023-12-31 05556432 e:SharePremium 2023-12-31 05556432 e:SharePremium 2022-12-31 05556432 e:CapitalRedemptionReserve 2023-01-01 2023-12-31 05556432 e:CapitalRedemptionReserve 2023-12-31 05556432 e:CapitalRedemptionReserve 2022-12-31 05556432 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 05556432 e:RetainedEarningsAccumulatedLosses 2023-12-31 05556432 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 05556432 e:RetainedEarningsAccumulatedLosses 2022-12-31 05556432 e:RetainedEarningsAccumulatedLosses 2022-01-01 05556432 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-12-31 05556432 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-12-31 05556432 e:FinancialLiabilitiesFairValueThroughProfitOrLoss e:ListedExchangeTraded 2023-12-31 05556432 e:FinancialLiabilitiesFairValueThroughProfitOrLoss e:ListedExchangeTraded 2022-12-31 05556432 e:FinancialLiabilitiesFairValueThroughProfitOrLoss e:UnlistedNon-exchangeTraded 2023-12-31 05556432 e:FinancialLiabilitiesFairValueThroughProfitOrLoss e:UnlistedNon-exchangeTraded 2022-12-31 05556432 e:AcceleratedTaxDepreciationDeferredTax 2023-12-31 05556432 e:AcceleratedTaxDepreciationDeferredTax 2022-12-31 05556432 d:OrdinaryShareClass1 2023-01-01 2023-12-31 05556432 d:OrdinaryShareClass1 2023-12-31 05556432 d:OrdinaryShareClass1 2022-12-31 05556432 d:OrdinaryShareClass2 2023-01-01 2023-12-31 05556432 d:OrdinaryShareClass2 2023-12-31 05556432 d:OrdinaryShareClass2 2022-12-31 05556432 d:OrdinaryShareClass3 2023-01-01 2023-12-31 05556432 d:OrdinaryShareClass3 2023-12-31 05556432 d:OrdinaryShareClass3 2022-12-31 05556432 d:FRS102 2023-01-01 2023-12-31 05556432 d:Audited 2023-01-01 2023-12-31 05556432 d:FullAccounts 2023-01-01 2023-12-31 05556432 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 05556432 e:WithinOneYear 2023-12-31 05556432 e:WithinOneYear 2022-12-31 05556432 e:BetweenOneFiveYears 2023-12-31 05556432 e:BetweenOneFiveYears 2022-12-31 05556432 2 2023-01-01 2023-12-31 05556432 e:CopyrightsPatentsTrademarksServiceOperatingRights e:OwnedIntangibleAssets 2023-01-01 2023-12-31 05556432 g:PoundSterling 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure
Registered number: 05556432














WOOD FINISHES DIRECT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

 
WOOD FINISHES DIRECT LIMITED
 

COMPANY INFORMATION


Directors
Mr T C Hagger 
Mr L S Mann (resigned 5 April 2023)




Company secretaries
Mr T C Hagger and Mrs H Hagger



Registered number
05556432



Registered office
Unit B
5 Acre Trade Estate,

Park Farm Road, Park Farm Industrial Estate,

Folkestone

Kent

CT19 5DS




Independent auditors
Magee Gammon Corporate Limited
Chartered Accountants & Statutory Auditors

Henwood House

Henwood

Ashford

Kent

TN24 8DH





 
WOOD FINISHES DIRECT LIMITED
 

CONTENTS



Page
Strategic report
 
1
Director's report
 
2 - 3
Independent auditors' report
 
4 - 7
Statement of income and retained earnings
 
8
Balance sheet
 
9
Statement of cash flows
 
10
Analysis of net debt
 
11
Notes to the financial statements
 
12 - 27

 
WOOD FINISHES DIRECT LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
Wood Finishes Direct Limited (WFD) is the leading independent provider of wood finishing, paints, and associated products in the United Kingdom. It has established itself as a leading provider by the innovation of marketing new products, consistent high-quality customer service, and offering impartial expert advice. It continually innovates both systems and processes to ensure optimisation. 

Business review
 
WFD experienced stable sales volume between 2023 and 2022, although woodcare sales for the industry experienced a decline in sales volume of -7.7%.
Even with the industry challenges detailed below, WFD managed to perform above average by providing excellent customer service, strategic pricing, additional supplier support received and the optimisation of internal systems and processes.
Much like 2022, the decline within the industry can be attributed to a reduction in demand likely due to inflationary pressures meaning consumers are spending less on discretionary items. This is also backed by a reduction in the units to order ratio from 2.13 in 2022 vs 2.01 in 2023.
Customer satisfaction and providing the best service for customers remains WFD's highest priority and the director will continue to support this.
The director expect to experience growth during 2024 compared to 2023 as WFD will continue to remain innovative and dynamic within the market.

Principal risks and uncertainties
 
Uncertainties and risks for 2024 are focused on inflation and the knock-on effect this has with regard to consumer demand and product pricing, changes in processes, and higher costs for products and couriers. 
Any risks or uncertainties are reviewed by the director regularly and plans are put in place to mitigate them as much as possible.

Financial key performance indicators
 
The primary key performance indicator used within WFD is gross profit. This is due to the continuous external factors affecting this and the director feels that manageable risks are mitigated as far as practical when ensuring the gross profit margin is where it is expected it to be at: 21% in 2023 vs 23% in 2022. This further shows the continued impact that a rise in cost prices is having within such a price-competitive industry. 


This report was approved by the board on 24 September 2024 and signed on its behalf.



___________________________
Mr T C Hagger
Director
Page 1

 
WOOD FINISHES DIRECT LIMITED
 

 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The director presents his report and the financial statements for the year ended 31 December 2023.

Director's responsibilities statement

The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments 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 director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Results and dividends

The profit for the year, after taxation, amounted to £259,488 (2022 - £285,926).

Dividends totalling £421,941 (2022 - £289,939) were paid in the year. No further dividend is proposed in relation to the financial year.

Directors

The directors who served during the year were:

Mr T C Hagger 
Mr L S Mann (resigned 5 April 2023)

Future developments

The director plans to focus on increasing the company's brand development. Developing new systems to optimise reporting and processes, and to ensure the smooth running of the day-to-day will allow the company to thrive in the current climate and for the foreseeable future. 

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 2

 
WOOD FINISHES DIRECT LIMITED
 

 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsMagee Gammon Corporate Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 24 September 2024 and signed on its behalf.
 





___________________________
Mr T C Hagger
Director
Page 3

 
WOOD FINISHES DIRECT LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WOOD FINISHES DIRECT LIMITED
 

Opinion


We have audited the financial statements of Wood Finishes Direct Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of income and retained earnings, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policiesThe 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 United Kingdom, including the Financial Reporting Council'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 director's 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 director 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 Auditors' report thereon. The director is responsible for the other information contained within the Annual ReportOur 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.


Page 4

 
WOOD FINISHES DIRECT LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WOOD FINISHES DIRECT LIMITED (CONTINUED)


Opinion 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 Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Director's report 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 Director's 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:


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 director's 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 Director's responsibilities statement set out on page 2, the director is 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 director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
WOOD FINISHES DIRECT LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WOOD FINISHES DIRECT LIMITED (CONTINUED)


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 an Auditors' 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, we have considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.  We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements including management override, and considered that the principal risk was related to the posting of inappropriate journal entries to improve the result before tax for the year.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.
Procedures performed by the audit team included:
• Discussions with management regarding known or suspected instances of non-compliance with laws and
  regulations;
• Evaluation of controls designed to prevent and detect irregularities; and
• Assessing journal entries as part of our planned audit approach.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.  As in all of our audits we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


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 Auditors' report.


Other matters 
 

The previous period's financial statements, the financial statements for the period ended 31 December 2020, were not subjected to an audit as the company took advantage of the small company exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members did not required the company to obtain an audit of its accounts for the period ended 31 December 2020 in accordance with section 476. 
Page 6

 
WOOD FINISHES DIRECT LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WOOD FINISHES DIRECT LIMITED (CONTINUED)


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 2006Our 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.





Joshua Conlon FCCA (Senior statutory auditor)
  
for and on behalf of
Magee Gammon Corporate Limited
 
Chartered Accountants
Statutory Auditors
  
Henwood House
Henwood
Ashford
Kent
TN24 8DH

24 September 2024
Page 7

 
WOOD FINISHES DIRECT LIMITED
 

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note

  

Turnover
 4 
13,315,523
11,970,868

Cost of sales
  
(10,473,728)
(9,211,732)

Gross profit
  
2,841,795
2,759,136

Administrative expenses
  
(2,385,632)
(2,466,992)

Other operating income
 5 
-
5,208

Other operating charges
  
(1,169)
(2,057)

Operating profit
  
454,994
295,295

Interest receivable and similar income
 9 
13,807
5,922

Interest payable and similar expenses
 10 
(58,374)
(20,281)

Profit before tax
  
410,427
280,936

Tax on profit
 11 
(150,939)
4,990

Profit after tax
  
£259,488
£285,926

  

  

Retained earnings at the beginning of the year
  
2,013,843
2,017,856

  
2,013,843
2,017,856

Profit for the year
  
259,488
285,926

Dividends declared and paid
  
(421,941)
(289,939)

Retained earnings at the end of the year
  
£1,851,390
£2,013,843
The notes on pages 12 to 27 form part of these financial statements.

Page 8

 
WOOD FINISHES DIRECT LIMITED
REGISTERED NUMBER: 05556432

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2021
Note

Fixed assets
  

Intangible assets
 13 
6,363
8,345

Tangible assets
 14 
143,654
247,350

Investment property
 15 
153,308
142,084

  
303,325
397,779

Current assets
  

Stocks
 16 
757,422
936,667

Debtors: amounts falling due within one year
 17 
809,426
516,305

Cash at bank and in hand
 18 
1,600,970
1,362,315

  
3,167,818
2,815,287

Creditors: amounts falling due within one year
 19 
(1,310,080)
(801,191)

Net current assets
  
 
 
1,857,738
 
 
2,014,096

Total assets less current liabilities
  
2,161,063
2,411,875

Creditors: amounts falling due after more than one year
 20 
(277,597)
(341,667)

Provisions for liabilities
  

Deferred tax
 23 
(29,576)
(53,865)

  
 
 
(29,576)
 
 
(53,865)

Net assets
  
£1,853,890
£2,016,343


Capital and reserves
  

Called up share capital 
 24 
76
76

Share premium account
 25 
2,398
2,398

Capital redemption reserve
 25 
26
26

Profit and loss account
 25 
1,851,390
2,013,843

  
£1,853,890
£2,016,343


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 September 2024.



___________________________
Mr T C Hagger
Director

The notes on pages 12 to 27 form part of these financial statements.

Page 9

 
WOOD FINISHES DIRECT LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022

Cash flows from operating activities

Profit for the financial year
259,488
285,926

Adjustments for:

Amortisation of intangible assets
1,982
1,924

Depreciation of tangible assets
113,117
117,114

Loss on disposal of tangible assets
(309)
-

Interest paid
3,269
922

Interest received
(13,807)
(5,922)

Taxation charge
150,939
(4,990)

Decrease in stocks
179,245
423,315

(Increase)/decrease in debtors
(293,121)
84,331

Increase/(decrease) in creditors
359,005
(139,047)

Corporation tax (paid)
(20,259)
(32,225)

Net cash generated from operating activities

739,549
731,348


Cash flows from investing activities

Purchase of intangible fixed assets
-
(731)

Purchase of tangible fixed assets
(11,112)
(47,512)

Sale of tangible fixed assets
2,000
-

Purchase of investment properties
(11,224)
(142,084)

Interest received
13,807
5,922

Net cash from investing activities

(6,529)
(184,405)

Cash flows from financing activities

Repayment of loans
(69,155)
(58,333)

Dividends paid
(421,941)
(289,939)

Interest paid
(3,269)
(922)

Net cash used in financing activities
(494,365)
(349,194)

Net increase in cash and cash equivalents
238,655
197,749

Cash and cash equivalents at beginning of year
1,362,315
1,164,566

Cash and cash equivalents at the end of year
£1,600,970
£1,362,315


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
£1,600,970
£1,362,315


Page 10

 
WOOD FINISHES DIRECT LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023



Cash at bank and in hand

1,362,315

238,655

1,600,970

Debt due after 1 year

(341,667)

64,070

(277,597)

Debt due within 1 year

(115,057)

20,142

(94,915)


£905,591
£322,867
£1,228,458

The notes on pages 12 to 27 form part of these financial statements.
Page 11

 
WOOD FINISHES DIRECT LIMITED
 

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

1.


General information

Wood Finishes Direct Limited (05556432) is a private company limited by shares and incorporated in England and Wales. The registered office and trading address of the company is Unit B, 5 Acre Trade Estate, Park Farm Road, Park Farm Industrial Estate, Folkestone, Kent, CT19 5DS. Its principal activity is the sale of woodcare products.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 12

 
WOOD FINISHES DIRECT LIMITED
 

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

2.Accounting policies (continued)

 
2.3

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.4

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of income and retained earnings in the same period as the related expenditure.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

 
WOOD FINISHES DIRECT LIMITED
 

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

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.10

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 14

 
WOOD FINISHES DIRECT LIMITED
 

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

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property
-
10%
straight line method
Plant and machinery
-
25%
straight line method
Fixtures and fittings
-
25%
straight line method
Office equipment
-
25%
straight line method

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Page 15

 
WOOD FINISHES DIRECT LIMITED
 

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

2.Accounting policies (continued)

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.18

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance sheet 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
Page 16

 
WOOD FINISHES DIRECT LIMITED
 

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

2.Accounting policies (continued)


2.18
Financial instruments (continued)


If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

 
2.19

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 17

 
WOOD FINISHES DIRECT LIMITED
 

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

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 
The judgements (apart from those involving estimations) that management have made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:
(i) Useful economic life of fixed and intangible assets - The annual depreciation and amortisation charges are based upon management's assessment of the useful economic lives and residual values of the company's tangible assets. These are reassessed annually and amended where necessary.
(ii) Stock valuation - Stocks are measured at the lower of cost and estimated selling price.
 


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022

Products
£13,315,523
£11,970,868


Analysis of turnover by country of destination:

2023
2022

United Kingdom
13,315,523
11,960,643

Rest of Europe
-
10,225

£13,315,523
£11,970,868



5.


Other operating income

2023
2022

Government grants receivable
£-
£5,208


Government grants receivable represents notional loan interest under the CBIL scheme.


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022

Fees payable to the Company's auditors for the audit of the Company's financial statements
8,400
8,000
Page 18

 
WOOD FINISHES DIRECT LIMITED
 

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

7.


Employees

Staff costs, including director's remuneration, were as follows:


2023
2022

Wages and salaries
1,386,849
1,338,168

Social security costs
120,050
120,529

Cost of defined contribution scheme
70,364
56,312

£1,577,263
£1,515,009


The average monthly number of employees, including the director, during the year was as follows:


        2023
        2022
            No.
            No.







56
58


8.


Director's remuneration

2023
2022

Director's emoluments
11,229
13,886

Company contributions to defined contribution pension schemes
85
374

£11,314
£14,260


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.


9.


Interest receivable

2023
2022


Other interest receivable
£13,807
£5,922


10.


Interest payable and similar expenses

2023
2022


Bank interest payable
55,105
19,359

Other interest payable
3,269
922

£58,374
£20,281

Page 19

 
WOOD FINISHES DIRECT LIMITED
 

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

11.


Taxation


2023
2022

Corporation tax


Current tax on profits for the year
120,624
68,415

Adjustments in respect of previous periods
54,605
(54,568)


175,229
13,847


Total current tax
£175,229
£13,847

Deferred tax


Origination and reversal of timing differences
(24,290)
(18,837)

Total deferred tax
£(24,290)
£(18,837)


Taxation on profit/(loss) on ordinary activities
£150,939
£(4,990)

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022


Profit on ordinary activities before tax
£410,427
£280,935


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
96,533
53,378

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
(65)
354

Capital allowances for year in excess of depreciation
24,156
14,683

Adjustments to tax charge in respect of prior periods
54,605
(54,568)

Short-term timing difference leading to an increase (decrease) in taxation
(24,290)
(18,837)

Total tax charge for the year
£150,939
£(4,990)


Factors that may affect future tax charges

Any government changes to the tax rate will affect future tax charges.

Page 20

 
WOOD FINISHES DIRECT LIMITED
 

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

12.


Dividends

2023
2022


2,340 £0.01 (2022: 3,400 £0.01) Ordinary A shares
211,930
135,750


4,460 £0.01 (2022: 3,400 £0.01) Ordinary B shares
190,500
109,745


758 £0.01 (2022: 758 £0.01) Ordinary C shares
19,511
44,444

£421,941
£289,939


13.


Intangible assets




Trademarks



Cost


At 1 January 2023
11,850



At 31 December 2023

11,850



Amortisation


At 1 January 2023
3,505


Charge for the year on owned assets
1,982



At 31 December 2023

5,487



Net book value



At 31 December 2023
£6,363



At 31 December 2021
£8,345



Page 21

 
WOOD FINISHES DIRECT LIMITED
 

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

14.


Tangible fixed assets





Short-term leasehold property
Plant and machinery
Fixtures and fittings
Office equipment
Total



Cost or valuation


At 1 January 2023
36,155
58,624
332,675
117,944
545,398


Additions
-
6,292
675
4,145
11,112


Disposals
-
(18,422)
(77,079)
(47,230)
(142,731)



At 31 December 2023

36,155
46,494
256,271
74,859
413,779



Depreciation


At 1 January 2023
7,817
24,553
191,098
74,580
298,048


Charge for the year on owned assets
3,682
13,934
75,386
20,115
113,117


Disposals
-
(16,731)
(77,079)
(47,230)
(141,040)



At 31 December 2023

11,499
21,756
189,405
47,465
270,125



Net book value



At 31 December 2023
£24,656
£24,738
£66,866
£27,394
£143,654



At 31 December 2022
£28,338
£34,071
£141,577
£43,364
£247,350




The net book value of land and buildings may be further analysed as follows:


2023
2022

Short leasehold
£24,656
£28,338


Page 22

 
WOOD FINISHES DIRECT LIMITED
 

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

15.


Investment property


Freehold investment property



Valuation


At 1 January 2023
142,084


Additions at cost
11,224



At 31 December 2023
153,308

The 2023 valuations were made by the director, on an open market value for existing use basis.



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2023
2022


Historic cost
£153,308
£142,084


16.


Stocks

2023
2022

Product stocks and consumables
£757,422
£936,667


Page 23

 
WOOD FINISHES DIRECT LIMITED
 

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

17.


Debtors

2023
2022


Trade debtors
70,911
54,933

Other debtors
443,923
222,610

Prepayments and accrued income
294,592
238,762

£809,426
£516,305



18.


Cash and cash equivalents

2023
2022

Cash at bank and in hand
£1,600,970
£1,362,315



19.


Creditors: Amounts falling due within one year

2023
2022

Bank loans
94,915
100,000

Trade creditors
743,730
425,833

Corporation tax
168,815
13,846

Other taxation and social security
209,630
166,708

Other creditors
53,512
58,661

Accruals and deferred income
39,478
36,143

£1,310,080
£801,191



20.


Creditors: Amounts falling due after more than one year

2023
2022

Bank loans
£277,597
£341,667


Page 24

 
WOOD FINISHES DIRECT LIMITED
 

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

21.


Loans


Analysis of the maturity of loans is given below:


2023
2022

Amounts falling due within one year

Bank loans
94,915
100,000

Amounts falling due 1-2 years

Bank loans
103,716
100,000

Amounts falling due 2-5 years

Bank loans
173,881
241,667


£372,512
£441,667



22.


Financial instruments

2023
2022

Financial assets


Financial assets measured at fair value through profit or loss
1,600,970
1,362,315

Financial assets measured at amortised cost
514,834
277,543

£2,115,804
£1,639,858


Financial Liabilities


Financial liabilities measured at amortised cost
(1,006,872)
(651,202)

Financial liabilities measured at fair value through profit or loss
(372,512)
(441,667)

£(1,379,384)
£(1,092,869)


Financial assets measured at fair value through profit or loss comprise of bank and cash balances.


Financial assets measured at amortised cost comprise of trade debtors and other debtors.


Financial liabilites measured at amortised cost comprise of trade creditors, other taxation and social security and other creditors.
Financial liabilities measured at fair value comprise of bank loans.
Page 25

 
WOOD FINISHES DIRECT LIMITED
 

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

23.


Deferred taxation




2023
2022





At beginning of year
(53,865)
(72,702)


Charged to profit or loss
24,289
18,837



At end of year
£(29,576)
£(53,865)

The provision for deferred taxation is made up as follows:

2023
2022


Accelerated capital allowances
£(29,576)
£(53,865)


24.


Share capital

2023
2022
Allotted, called up and fully paid



2,340 (2022 - 3,400) Ordinary A shares of £0.01 each 
23
34
4,460 (2022 - 3,400) Ordinary B shares of £0.01 each
45
34
758 (2022 - 3,400) Ordinary C shares of £0.01 each
8
8

£76

£76



25.


Reserves

Share premium account

The share premium account arose from Ordinary B and C shares issued above nominal value. This is a non-distributable reserve.

Capital redemption reserve

The capital redemption reserve arose from the repurchase of 2,642 Ordinary C £0.01 shares during an earlier year. This is a non-distributable reserve.

Profit and loss account

The profit and loss account reserve represents the accumulated profits passing through the statement of comprehensive income. This is a distributable reserve.


26.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £70,363 (2022 - £56,312). Contributions totalling £nil (2022 - £nil) were payable to the fund at the balance sheet date and are included in creditors.

Page 26

 
WOOD FINISHES DIRECT LIMITED
 

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

27.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022


Not later than 1 year
260,925
251,067

Later than 1 year and not later than 5 years
34,313
295,238

£295,238
£546,305


28.


Related party transactions

At the balance sheet date the director owed the company £407,365 (2022 - £15,057 owed to the director) in respect to cash loaned from/to the company. £407,365 was the maximum outstanding balance during the year. A former director owed the company £1,059 (2022 - £129,065). The maximum outstanding balance on this loan was £164,315 (2022: £129,065). These are disclosed in other debtors and other creditors. Interest was charged on the overdrawn balance at HMRC approved rates.
During the year under review, the company completed sales to companies under common control amounting to £53,186 (2022 - £46,654). At the balance sheet date, companies under common control owed the reporting company £9,647 (2022 - £64,818) in respect to amounts advanced. 


Page 27