REGISTERED NUMBER: |
Strategic Report, Directors' Report and |
Financial Statements for the Year Ended 31 March 2023 |
for |
Ernest V. Waddington Limited |
REGISTERED NUMBER: |
Strategic Report, Directors' Report and |
Financial Statements for the Year Ended 31 March 2023 |
for |
Ernest V. Waddington Limited |
Ernest V. Waddington Limited (Registered number: 00463959) |
Contents of the Financial Statements |
for the Year Ended 31 March 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Directors' Report | 3 |
Report of the Independent Auditors | 5 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 16 |
Ernest V. Waddington Limited |
Company Information |
for the Year Ended 31 March 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
BUSINESS ADDRESS: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Statutory Auditor |
68 Queen Street |
Sheffield |
South Yorkshire |
S1 1WR |
BANKERS: |
Bank Street |
Mexborough |
South Yorkshire |
S64 9QE |
SOLICITORS: |
Marina Court |
Castle Street |
Hull |
HU1 1TJ |
Ernest V. Waddington Limited (Registered number: 00463959) |
Strategic Report |
for the Year Ended 31 March 2023 |
The directors present their strategic report for the year ended 31 March 2023. |
REVIEW OF BUSINESS |
The financial year to 31 March 2023 confirmed the company as holding a significant investment property portfolio, with rental income increasing by over £1,000,000. |
KEY FINANCIAL PERFORMANCE INDICATORS |
2023 | 2022 |
£ | £ |
Turnover | 11,684,798 | 10,648,998 |
Operating profit | 11,164,562 | 10,465,752 |
Net assets | 93,264,479 | 83,840,728 |
The results for the year ended 31 March 2023 were very consistent with those of the previous year , with a growth in revenue on the back of continuing development of the company's investment properties. |
The directors in recent years have invested all retained reserves in the growth of its investment property portfolio. A change in this year, is that the company has now provided funding to two new associated companies for them to construct and obtain investment properties. The company receives interest on the funding provided and the funding will be repaid from rents received by the associated companies. |
The balance sheet remains incredibly strong on the back of significant post taxation profit, and it is credible that there is no external debt within the balance sheet. The continued growth on the back of the investment property portfolio will take the company to increased strength. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company derives a significant part of its revenue from a substantial investment portfolio, which leads to healthy cash generation. The directors do not foresee any risks, business or financial, with regards to the continuing nature of the revenue stream. |
The investment properties are responsible for the strength shown by the balance sheet, and there is no perceived uncertainty as to their continuing value at greater than shown in the balance sheet. |
ON BEHALF OF THE BOARD: |
Ernest V. Waddington Limited (Registered number: 00463959) |
Directors' Report |
for the Year Ended 31 March 2023 |
The directors present their report with the financial statements of the company for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of managing warehouses and other property, the sale of timber products and the carriage of goods by canal. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2023. |
FUTURE DEVELOPMENTS |
The company has consolidated it's investment property portfolio in recent years, which it will continue to invest in for the foreseeable future. It is envisaged that in the next few years the property portfolio will increase in both number and value. |
DIRECTORS |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
The Company's principal financial assets are cash and trade receivables. Credit risk is managed through assessment of the financial strength of customers prior to entering into a contract. Liquidity risk is managed through the management of payables and receivables within contractual obligations and effective credit control monitoring procedures. The company does not use any complex financial instruments. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Ernest V. Waddington Limited (Registered number: 00463959) |
Directors' Report |
for the Year Ended 31 March 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Landin Wilcock & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Ernest V. Waddington Limited |
Qualified Opinion |
We have audited the financial statements of Ernest V. Waddington Limited (the 'company') for the year ended 31 March 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion, except for the effects of the matter described in the basis for qualified opinion section of our report, the company financial statements: |
- give a true and fair view of the state of the company’s affairs as at 31 March 2023 and of its the 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 qualified opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. The company has not revalued its investment property to its fair market value which is in excess of the carrying value. The directors consider the cost of undertaking this on an annual basis to be excessive and the investment is therefore accounted for on a cost basis. Under FRS 102, the company should have revalued the investment property on an annual basis to its fair market value and accounted for any gain/ loss through the income statement. If this had been undertaken, there would then have been a deferred tax creditor required on the revaluation of the investment property. |
Had the investment property been revalued, investment property, deferred taxation and retained earnings in the accompanying financial statements would have been materially affected. The effects on the financial statements of the failure to revalue have not been determined. |
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. |
Key audit matters |
Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report. |
Report of the Independent Auditors to the Members of |
Ernest V. Waddington Limited |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
As described in the Basis for qualified opinion section of our report, our audit opinion is qualified for non revaluation of investment property to fair market value and then the subsequent impact this would have on deferred taxation and retained earnings. |
Information included in the strategic report / directors’ report also omits this information and accordingly we have concluded that the other information is materially misstated for the same reason. |
Opinions on other matters prescribed by the Companies Act 2006 |
Except for the matter described in the Basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit: |
-the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
-the strategic report and the directors' report have been prepared in accordance with applicable legal requirements. |
Comparative information in the financial statements is derived from the company's prior period financial statements which were not audited. |
However, we have observed a physical stock count at the prior year end date and also carried out normal year end audit procedures regarding stock existence, condition and cut off, in relation to stock movements. We have also obtained sufficient evidence in relation to all other opening balances, and after the restatement of the prior year balances discussed in note 8, we are not aware of any possible material misstatements outside of the reasons for our qualified audit opinion. These reasons were also present in the prior year period. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
Ernest V. Waddington Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- minimal reliance was placed upon the operating effectiveness of internal controls in the design and performance of our substantive procedures; |
- discussions were held with management considering known or suspected non-compliance with laws, regulations and fraud; |
- journal entries were reviewed for any entries made outside the ordinary reporting processes with particular emphasis on those with unusual account combinations, entries crediting revenue and those without specific descriptions; |
- management assumptions in their significant accounting estimates were challenged and scrutinised. |
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. Also, 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 or intentional misrepresentations, or through collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Ernest V. Waddington Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
68 Queen Street |
Sheffield |
South Yorkshire |
S1 1WR |
Ernest V. Waddington Limited (Registered number: 00463959) |
Income Statement |
for the Year Ended 31 March 2023 |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses |
10,862,413 | 10,128,638 |
Other operating income |
OPERATING PROFIT | 5 |
Income from fixed asset investments |
Interest receivable and similar income |
11,325,391 | 10,470,260 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 7 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
Ernest V. Waddington Limited (Registered number: 00463959) |
Other Comprehensive Income |
for the Year Ended 31 March 2023 |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Note |
Prior year adjustment | 8 |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
12,453,978 |
Ernest V. Waddington Limited (Registered number: 00463959) |
Balance Sheet |
31 March 2023 |
31/3/23 | 31/3/22 | 1/4/21 |
as restated |
(Unaudited) |
Notes | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 | 3,604,205 |
Cash at bank and in hand |
7,354,472 |
CREDITORS |
Amounts falling due within one year | 15 | ( |
) | ( |
) | ( |
) |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) | ( |
) |
ACCRUALS AND DEFERRED INCOME | 18 | ( |
) | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Ernest V. Waddington Limited (Registered number: 00463959) |
Statement of Changes in Equity |
for the Year Ended 31 March 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2022 |
Prior year adjustment | - |
As restated |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2023 |
Ernest V. Waddington Limited (Registered number: 00463959) |
Cash Flow Statement |
for the Year Ended 31 March 2023 |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of fixed asset investments | - | (3 | ) |
Purchase of investment property | ( |
) | ( |
) |
Sale of tangible fixed assets |
Sale of investment property |
Interest received |
Dividends received |
Net cash from investing activities | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
3,614,166 |
Cash and cash equivalents at end of year | 2 | 10,542,917 | 5,260,419 |
Ernest V. Waddington Limited (Registered number: 00463959) |
Notes to the Cash Flow Statement |
for the Year Ended 31 March 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 22,500 | 22,500 |
Finance income | (160,829 | ) | (4,508 | ) |
10,247,425 | 9,709,678 |
(Increase)/decrease in stocks | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 10,542,917 | 5,260,419 |
Year ended 31 March 2022 |
31/3/22 | 1/4/21 |
as restated |
(Unaudited) |
£ | £ |
Cash and cash equivalents | 5,260,419 | 3,614,166 |
Ernest V. Waddington Limited (Registered number: 00463959) |
Notes to the Cash Flow Statement |
for the Year Ended 31 March 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/4/22 | Cash flow | At 31/3/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 5,260,419 | 5,282,498 | 10,542,917 |
5,260,419 | 10,542,917 |
Debt |
Debts falling due within 1 year | (750,000 | ) | - | (750,000 | ) |
(750,000 | ) | - | (750,000 | ) |
Total | 4,510,419 | 5,282,498 | 9,792,917 |
Ernest V. Waddington Limited (Registered number: 00463959) |
Notes to the Financial Statements |
for the Year Ended 31 March 2023 |
1. | STATUTORY INFORMATION |
Ernest V. Waddington Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Whilst the company holds subsidiary undertakings as identified in note 11, group accounts have not been prepared. This is because the directors believe that individually and in aggregate the subsidiary undertakings are not material and also not necessary to give a true and fair view of the group as a whole. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Rental income is recognised on a straight line basis over the term of the rental agreement. |
Timber sales are recognised at when the goods are delivered to or collected by the customer. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible fixed assets are initially measured at cost. Subsequently, they are measured at cost less accumulated depreciation and impairment losses. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Investment property |
Investment property is held at historic cost. This is a departure from the requirements of FRS 102 because the directors believe that the determination of fair value would take undue cost or effort. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Ernest V. Waddington Limited (Registered number: 00463959) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. 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 asset of the company after deducting all of its liabilities. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Government grants |
Government grants are recognised in accordance with the performance model. |
A grant that does not impose future performance-related conditions is recognised in income when the grant proceeds are received or receivable. Those that do impose performance-related conditions are only recognised in income when those performance-related conditions are met. Amounts received in relation to a grant before the revenue recognition criteria are met are recognised as a liability. |
Ernest V. Waddington Limited (Registered number: 00463959) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
£ | £ |
An analysis of turnover by geographical market is given below: |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
£ | £ |
United Kingdom |
4. | EMPLOYEES AND DIRECTORS |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
£ | £ |
Wages and salaries |
Other pension costs |
The average number of employees during the year was as follows: |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
Directors | 2 | 2 |
Operations | 12 | 12 |
Administration | 6 | 6 |
Ernest V. Waddington Limited (Registered number: 00463959) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
£ | £ |
Interest payable |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
Ernest V. Waddington Limited (Registered number: 00463959) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
Adjustment to deferred tax charge in respect of previous periods | (231,542 | ) | 110,823 |
Change in tax rate | - | 139,234 |
Indexation allowance on assets sold | (14,867 | ) | (5,634 | ) |
Total tax charge | 1,879,140 | 2,017,571 |
8. | PRIOR YEAR ADJUSTMENT |
In prior periods, government grants have not been recognised according to the company's accounting policies. This has been resolved in the current period and has resulted in a £3,128,050 increase to retained earnings brought forward and a reduction of £3,128,050 in non-current liabilities in the comparative balance sheet. |
Adjustments to prior periods have also been made for irrecoverable VAT. This VAT was irrecoverable at the balance sheet dates previously presented and as such should not have have been carried as a reduction to the VAT liability. This has now been resolved resulting in a reduction in retained earnings of £97,823 and an increase in current liabilities of £97,823. |
The above adjustments are not exhaustive of all prior period errors but represent those that have impacted retained earnings. For details of other errors, please see note 9. |
Ernest V. Waddington Limited (Registered number: 00463959) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
9. | RECLASSIFICATION OF COMPARATIVE AMOUNTS |
In the current year, errors have been identified regarding the classification of items in the balance sheet. These are outlined below and the resultant adjustments to the comparative amounts have been documented. |
The company's property portfolio has historically been classified as property, plant and equipment. This is not accurate as the most suitable classification would be investment property in line with FRS 102. The portfolio has been reclassified and the impact to the comparative balance sheet is as follows: increase investment property by £86,058,491, reduce tangible fixed assets by £86,058,491. |
The company issued preference shares a number of years ago and these have historically been classified as a non-current liability. However, the terms of the preference shares are such that redemption is at the discretion of the company. Therefore, appropriate classification of the preference shares is in equity. The comparative balance sheet has been adjusted as follows: increase equity £2,300,000, reduce non-current liabilities £2,300,000. |
The company holds a loan of £750,000 with a third party, with no set repayment terms. This has previously been treated as a non-current liability. However, as the company has no right to defer settlement of the loan, it should have been classified as a current liability. The comparative balance sheet has been adjusted as follows: increase current liabilities £750,000, reduce non-current liabilities £750,000. |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2022 |
Additions |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Ernest V. Waddington Limited (Registered number: 00463959) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
11. | FIXED ASSET INVESTMENTS |
Shares in |
group | Listed | Unlisted |
undertakings | investments | investments | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2022 |
and 31 March 2023 | 73,871 |
NET BOOK VALUE |
At 31 March 2023 | 73,871 |
At 31 March 2022 | 73,871 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 68 Queen Street, Sheffield, S1 1WR |
Nature of business: |
% |
Class of shares: | holding |
31/3/23 | 31/3/22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: 68 Queen Street, Sheffield, S1 1WR |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves |
Registered office: 68 Queen Street, Sheffield, S1 1WR |
Nature of business: |
% |
Class of shares: | holding |
31/3/23 | 31/3/22 |
£ | £ |
Aggregate capital and reserves |
Ernest V. Waddington Limited (Registered number: 00463959) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
Associated company |
Registered office: 68 Queen Street, Sheffield, S1 1WR |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves |
12. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 April 2022 |
Additions |
Disposals | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
13. | STOCKS |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
£ | £ |
Finished goods |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
£ | £ |
Trade debtors |
Other debtors |
Directors' current accounts | 22,681 | - |
Prepayments |
Ernest V. Waddington Limited (Registered number: 00463959) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
£ | £ |
Other loans (see note 16) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
VAT | 400,543 | 251,426 |
Other creditors |
Rent Deposits | 172,278 | 137,126 |
Directors' current accounts | 90,951 | 72,541 |
Accrued expenses |
Deferred government grants |
16. | LOANS |
An analysis of the maturity of loans is given below: |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
£ | £ |
Amounts falling due within one year or on demand: |
Other loans |
17. | PROVISIONS FOR LIABILITIES |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
£ | £ |
Deferred tax | 1,639,982 | 1,766,480 |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Credit to Income Statement during year | ( |
) |
Balance at 31 March 2023 |
Ernest V. Waddington Limited (Registered number: 00463959) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
18. | ACCRUALS AND DEFERRED INCOME |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
£ | £ |
Deferred government grants | 426,132 | 1,526,132 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31/3/23 | 31/3/22 |
value: | £ | £ |
Ordinary | 10000 | 10,000 | 10,000 |
Preference | 1 | 2,300,000 | 2,300,000 |
2,310,000 | 2,310,000 |
Ordinary shares carry full voting rights, the right to participate in dividends, repayment of capital and the company's assets in a winding up. Ordinary shares are not redeemable. |
Preference shares carry no voting rights, no rights to a dividend, and no right to a return of assets on the company's winding up. Preference shares are redeemable at the option of the company. |
20. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2022 |
Prior year adjustment |
Profit for the year |
At 31 March 2023 |
Retained earnings comprise cumulated profits and losses net of dividends and transfers. |
21. | CAPITAL COMMITMENTS |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
£ | £ |
Contracted but not provided for in the |
financial statements |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
At the balance sheet date there is £22,681 due from director E J Waddington (2022 - £78,234 due to). |
Ernest V. Waddington Limited (Registered number: 00463959) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
23. | RELATED PARTY DISCLOSURES |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
£ | £ |
Transfers from related party | - | 8,136 |
Amount due from related party |
31/3/23 | 31/3/22 |
as restated |
(Unaudited) |
£ | £ |
Transfers from related party | 868,170 | 361,048 |
Transfers to related party | 5,049,179 | 6,420,725 |
Amount due from related party |
Amount due to related party |
24. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is |