REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
WILFRED SCRUTON LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
WILFRED SCRUTON LIMITED |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Income Statement | 8 |
Other Comprehensive Income | 9 |
Statement of Financial Position | 10 |
Statement of Changes in Equity | 11 |
Statement of Cash Flows | 12 |
Notes to the Statement of Cash Flows | 13 |
Notes to the Financial Statements | 15 |
WILFRED SCRUTON LIMITED |
COMPANY INFORMATION |
for the year ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
STRATEGIC REPORT |
for the year ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The results for the year show a decline in revenue but with stable gross margin. The impact of high inflation, rising interest rates and economic downturn has resulted in lower demand, which the business has worked hard to mitigate. However, due to the steep rise in interest rates in the year in particular, the company has reported a net loss before tax of £194,814 (2022: profit of £621,914). |
Service staff remain a key part of our business. We have a great team in all departments. We invest heavily in training and this is paying dividends in terms of level of service we are able to offer across the board. |
We remain cautious as the new year progresses. We have seen revenues and margins remain stable. In August 2024, the company completed a re-financing of its borrowings, which has further stabilised our interest costs and given a firm base upon which to move forward. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main risk to the company continues to be the link to farm commodities whereby volatile prices always have an effect. |
The company's principal financial instruments comprise bank loan and overdraft, trade creditors, trade debtors and finance lease arrangements. The main purpose of these instruments is to finance the company's operations. |
Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below. |
The company manages the liquidity risk of trade creditors and finance lease arrangements by ensuring there are sufficient funds to meet payments when they fall due. |
Trade debtors are managed in respect of credit and cash flow risk by control over credit offered to customers and the regular monitoring of amounts outstanding. |
ON BEHALF OF THE BOARD: |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
REPORT OF THE DIRECTORS |
for the year ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of agricultural engineers and dealers in agricultural machinery. |
DIVIDENDS |
An interim dividend of £ |
The total distribution of dividends for the year ended 31 December 2023 will be £ |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
FINANCIAL INSTRUMENTS |
The company's principal financial instruments comprise bank loan and overdraft, trade creditors, trade debtors and finance lease arrangements. The main purpose of these instruments is to finance the company's operations. |
Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below. |
The company manages the liquidity risk of trade creditors and finance lease arrangements by ensuring there are sufficient funds to meet payments when they fall due. |
Trade debtors are managed in respect of credit and cash flow risk by control over credit offered to customers and the regular monitoring of amounts outstanding. |
DISCLOSURE IN THE STRATEGIC REPORT |
The fair review of the company's business including future developments and details of the principal risks and uncertainties facing the company are included in the Strategic Report. |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
REPORT OF THE DIRECTORS |
for the year ended 31 December 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
WILFRED SCRUTON LIMITED |
Opinion |
We have audited the financial statements of Wilfred Scruton Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
WILFRED SCRUTON LIMITED |
Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine 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: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- reading the minutes of meetings of those charged with governance; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC and relevant regulators. |
Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation. |
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 |
WILFRED SCRUTON 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 an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants |
12 Alma Square |
Scarborough |
North Yorkshire |
YO11 1JU |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
INCOME STATEMENT |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
REVENUE |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
2,516,406 | 2,352,338 |
OPERATING PROFIT | 4 |
Interest payable and similar expenses | 5 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 6 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
OTHER COMPREHENSIVE INCOME |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
Prior year adjustment |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
426,113 |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
STATEMENT OF FINANCIAL POSITION |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 8 |
CURRENT ASSETS |
Inventories | 9 |
Debtors | 10 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 12 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Revaluation reserve | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 December 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Prior year adjustment | - | - |
As restated |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) | ( |
) |
Balance at 31 December 2023 |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
STATEMENT OF CASH FLOWS |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of finance lease payments paid | ( |
) | ( |
) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Net cash from investing activities |
Cash flows from financing activities |
Finance lease capital raised/(repaid) | ( |
) | ( |
) |
Loans received/ (repaid) | 143,135 | 162,762 |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year | 2 | (2,122,123 | ) | (1,998,245 | ) |
Cash and cash equivalents at end of year | 2 | ( |
) | ( |
) |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
NOTES TO THE STATEMENT OF CASH FLOWS |
for the year ended 31 December 2023 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
(Loss)/profit before taxation | ( |
) |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 800,990 | 329,699 |
1,067,377 | 1,412,263 |
Increase in inventories | ( |
) | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 11,678 | 11,514 |
Bank overdrafts | ( |
) | ( |
) |
(2,385,869 | ) | (2,122,123 | ) |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 11,514 | 11,371 |
Bank overdrafts | ( |
) | ( |
) |
(2,122,123 | ) | (1,998,245 | ) |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
NOTES TO THE STATEMENT OF CASH FLOWS |
for the year ended 31 December 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.1.23 | Cash flow | changes | At 31.12.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 11,514 | 164 | 11,678 |
Bank overdrafts | (2,133,637 | ) | (263,910 | ) | (2,397,547 | ) |
(2,122,123 | ) | ( |
) | (2,385,869 | ) |
Debt |
Finance leases | (1,464,795 | ) | 775,633 | (722,507 | ) | (1,411,669 | ) |
Debts falling due |
within 1 year | (414,315 | ) | (33,560 | ) | - | (447,875 | ) |
Debts falling due |
after 1 year | (24,951 | ) | (109,575 | ) | - | (134,526 | ) |
(1,904,061 | ) | 632,498 | (722,507 | ) | (1,994,070 | ) |
Total | (4,026,184 | ) | 368,752 | (722,507 | ) | (4,379,939 | ) |
4. | MAJOR NON-CASH TRANSACTIONS |
During the year, the company entered into finance lease arrangements in respect of fixed assets with a total capital value at the inception of the leases of £722,507. |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Wilfred Scruton Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The company has reported a modest loss in the current period. However, to manage fluctuations in working capital, the company utilises an overdraft facility and also has loan facilities with its bank. Amounts due on these facilities have been repaid on time throughout the year and the post balance sheet period. |
One loan facility had a financial covenant which, at the prior year balance sheet date, the company had breached. The company reported this matter to the bank and entered into discussions with the bank to resolve the matter and on 8th June 2023 the bank confirmed that it did not intend to take any action. The loan was fully repaid in July 2023. |
The company agreed the renewal of the existing overdraft facility with the bank in June 2023, securing ongoing facilities to 11 June 2024. The bank also agreed a development loan of £243,000 over 3 years to finance a new building at the Foxholes site and an overdraft increase of £300,000 until 31 December 2023. In August 2024, the company agreed a new overdraft facility of £2.5m with its current bankers. |
The directors have considered the future working capital requirements of the company over the going concern assessment period to September 2025, taking in to account possible downside scenarios that would adversely impact the company's net cash position as well as mitigating action available to them to manage such fluctuations. Based on their assessment and the extent of the current levels of funding available to the company, the directors have concluded that the company has sufficient resources available to continue to trade throughout the assessment period and consequently, these financial statements have been prepared on the going concern basis. |
Significant judgements and estimates |
In preparing the financial statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates. |
Critical judgements in applying the company's policies |
No significant judgements have had to made by management in preparing these financial statements. |
Critical accounting estimates and assumptions |
Impairment of inventories |
An impairment review is performed on wholegood inventories and property held in stock at each year end by the Directors and impairment losses are estimated and recognised based on current condition, obsolescence or declining selling prices. Provision is also made at each year end for obsolete and slow moving parts inventories based upon estimates calculated on the age of the inventory item. |
The directors do not consider that any other estimates and assumptions used in the preparation of these financial statements have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. |
Revenue |
Revenue represents goods and services supplied, excluding value added tax and trade discounts. Revenue is recognised to the extent that the company has obtained the right to consideration through its performance and is measured at the fair value of the right to consideration. |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Property, plant and equipment |
Items of property, plant and equipment are initially measured at cost. After initial recognition items of property, plant and equipment are measured at cost less any accumulated depreciation and any accumulated impairment losses. |
Depreciation of property, plant and equipment has been provided at various rates which are anticipated to amortise the cost less residual value over the assets' expected useful lives. The freehold land and buildings cost comprise a previous revaluation as deemed cost on transition to FRS 102. Indicative annual rates are:- |
Freehold land | 0% |
Freehold buildings | 4% | straight line basis |
Improvements to property | 10% | straight line basis |
Plant & machinery | 12.5% | reducing balance basis |
Motor vehicles | 25% | reducing balance basis |
Office equipment | 10% - 25% | reducing balance basis or straight line basis |
Hire assets | 10% | straight line basis |
The residual values of classic tractors held within plant and machinery are expected to exceed their book value of £115,518 (2022 - £115,518) so no depreciation is provided. Hire assets relate to machinery which has been purchased for long term hire. |
Inventories |
Inventories are measured at the lower of cost and estimated selling price less costs to sell having due regard to any slow moving or obsolete items. Cost includes all directly attributable costs. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred taxation |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
The company has a presentational and functional currency of Pound Sterling (GBP). |
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange gains and losses are recognised in the income statement. |
Leases |
Assets acquired under finance lease agreements, including hire purchase agreements, are capitalised and the corresponding liability is included in creditors. Finance lease interest is charged to the income statement on a reducing balance basis over the period of the agreement. Operating lease rentals are charged against profits of the period to which they relate. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year. |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade, other accounts receivable and payable and loans to related parties. |
Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. |
Debt instruments such as loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised costs using the effective interest method. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
No. | No. |
The average number of staff, including directors, employed within each category was:- |
Office and administration | 6 | 6 |
Sales | 59 | 55 |
65 | 61 |
Costs incurred were:- | £ | £ |
Wages and salaries | 2,552,929 | 2,285,230 |
Social security costs | 248,182 | 225,320 |
Other pension costs | 49,096 | 67,449 |
2,850,207 | 2,578,000 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on finance leases |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Foreign exchange differences |
Auditors remuneration |
Auditors remuneration - other services |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts | 221,782 | 78,209 |
Finance leases | 92,445 | 64,510 |
Other interest | 503,013 | 186,980 |
817,240 | 329,699 |
6. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Deferred tax | ( |
) |
Tax on (loss)/profit | ( |
) |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
( |
) |
Effects of: |
Expenses not deductible for tax purposes | ( |
) |
Fixed asset and other timing differences | (131,894 | ) | 4,599 |
Difference in tax rates | - | 36,118 |
Permanent timing difference | (2,200 | ) | (22,790 | ) |
Prior period error adjustment | - | 123,531 |
Total tax (credit)/charge | (183,157 | ) | 272,987 |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
7. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim |
8. | PROPERTY, PLANT AND EQUIPMENT |
Freehold | Improvements |
land & | to | Plant and |
buildings | property | machinery |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Hire | Motor | Office |
assets | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Included in cost of land and buildings is freehold land of £ 270,000 (2022 - £ 270,000 ) which is not depreciated. |
The net book value of fixed assets includes £2,125,349 (2022 - £2,204,464) in respect of assets held under finance leases. All other items of property, plant and equipment are pledged as security for bank borrowings. |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
9. | INVENTORIES |
2023 | 2022 |
£ | £ |
Work in progress |
Goods for resale |
Other stock | 335,000 | 335,000 |
Included above are goods included in secured trade creditors of £6,953,075 (2022 - £6,462,340) and secured freehold property of £335,000 (2022 - £335,000). |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments and accrued income |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 13) |
Other loans (see note 13) |
Finance leases (see note 14) |
Trade creditors |
Social security and other taxes |
VAT | 229,712 | 76,171 |
Other creditors |
Directors' current accounts | 56,967 | 23,172 |
Accruals and deferred income |
12. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 13) |
Finance leases (see note 14) |
13. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Other loans |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
13. | LOANS - continued |
2023 | 2022 |
£ | £ |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
In August 2024, the company agreed a new overdraft facility of £2.5m with its current bankers. |
14. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Finance leases |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
15. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank overdrafts |
Other loans |
Finance leases | 1,411,669 | 1,464,795 |
Trade creditors | 6,953,075 | 6,462,340 |
Bank loans | 216,200 | 79,425 |
Bank borrowings are secured by a first legal mortgage over freehold property and a debenture and fixed and floating charges over the company's assets and undertaking. A personal guarantee has also been provided on bank borrowings by a director which is limited to £400,000. Trade creditors and finance leases are secured on the relevant underlying assets. Other loans are secured by a debenture and legal fixed charge over property held as other stock in these accounts and a floating charge over all property and undertaking of the company, together with personal guarantees from two director shareholders and one shareholder. |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
16. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax - accelerated |
capital allowances | 289,806 | 472,963 |
289,806 | 472,963 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Accelerated capital allowances | (14,839 | ) |
Tax losses carried forward | (168,318 | ) |
Balance at 31 December 2023 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 18,300 | 18,300 |
Shares carry equal voting rights and each share also ranks equally in regards to dividend payments or any other distribution including a distribution arising from the winding up of the company. |
18. | RESERVES |
The retained earnings includes all current and prior period retained profits and losses. |
The revaluation reserve arises on the previous revaluation of land and buildings. Distributions from this reserve are not permitted by Company Law as the balance does not represent a realised profit. |
19. | PENSION COMMITMENTS |
The company operates defined contribution pension schemes for its employees. The assets of the schemes are held separately from those of the company in independently administered funds. The level of contributions made by the company to the schemes during the year was £49,096 (2022 - £67,449). Outstanding contributions due at the balance sheet date amount to £13,125 (2022 - £11,846). |
20. | CAPITAL COMMITMENTS |
2023 | 2022 |
£ | £ |
Contracted but not provided for in the |
financial statements |
WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 December 2023 and 31 December 2022: |
2023 | 2022 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
No interest is charged on overdrawn loan accounts. |
22. | RELATED PARTY DISCLOSURES |
2023 | 2022 |
£ | £ |
Rental of property from key management personnel | 24,000 | 24,000 |
Amount due to related party |
2023 | 2022 |
£ | £ |
Amount due to related party |
Dividends payable to directors totalled £75,600 (2022 - £52,380). No interest is charged on loans from related parties. |
23. | POST BALANCE SHEET EVENTS |
In August 2024, the company agreed a new overdraft facility of £2.5 million with its current bankers. |