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REGISTERED NUMBER: 00496990 (England and Wales)















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: P K Scruton
I J Scruton
Miss J M Scruton
Miss S Scruton
R G Bower
R Gillett
Mrs L R Bell





SECRETARY: Mrs S Scruton





REGISTERED OFFICE: Providence Foundry
Foxholes
Driffield
East Yorkshire
YO25 3QQ





REGISTERED NUMBER: 00496990 (England and Wales)

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:





I J Scruton - Director


23 September 2024

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 £7.00 per share was paid on 24 July 2023. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2023 will be £ 128,100 .

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.

P K Scruton
I J Scruton
Miss J M Scruton
Miss S Scruton
R G Bower
R Gillett
Mrs L R Bell

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:





I J Scruton - Director


23 September 2024

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.




Matthew Fox FCCA (Senior Statutory Auditor)
for and on behalf of Smailes Goldie Watson Limited
Statutory Auditors
Chartered Accountants
12 Alma Square
Scarborough
North Yorkshire
YO11 1JU

23 September 2024

WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990)

INCOME STATEMENT
for the year ended 31 December 2023

2023 2022
Notes £    £    £    £   

REVENUE 34,282,856 36,098,265

Cost of sales 31,160,274 32,794,314
GROSS PROFIT 3,122,582 3,303,951

Distribution costs 1,535,247 1,416,659
Administrative expenses 981,159 935,679
2,516,406 2,352,338
OPERATING PROFIT 4 606,176 951,613


Interest payable and similar expenses 5 800,990 329,699
(LOSS)/PROFIT BEFORE TAXATION (194,814 ) 621,914

Tax on (loss)/profit 6 (183,157 ) 272,987
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(11,657

)

348,927

WILFRED SCRUTON LIMITED (REGISTERED NUMBER: 00496990)

OTHER COMPREHENSIVE INCOME
for the year ended 31 December 2023

2023 2022
Notes £    £   

(LOSS)/PROFIT FOR THE YEAR (11,657 ) 348,927


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

(11,657

)
Prior year adjustment 77,186
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 4,202,065 3,943,503

CURRENT ASSETS
Inventories 9 12,796,723 12,585,245
Debtors 10 2,368,945 2,919,754
Cash at bank and in hand 11,678 11,514
15,177,346 15,516,513
CREDITORS
Amounts falling due within one year 11 14,486,448 14,257,259
NET CURRENT ASSETS 690,898 1,259,254
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,892,963

5,202,757

CREDITORS
Amounts falling due after more than one year 12 (789,299 ) (776,179 )

PROVISIONS FOR LIABILITIES 16 (289,806 ) (472,963 )
NET ASSETS 3,813,858 3,953,615

CAPITAL AND RESERVES
Called up share capital 17 18,300 18,300
Revaluation reserve 18 214,911 223,594
Retained earnings 18 3,580,647 3,711,721
SHAREHOLDERS' FUNDS 3,813,858 3,953,615

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2024 and were signed on its behalf by:





I J Scruton - Director


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 18,300 3,365,680 232,277 3,616,257
Prior year adjustment - 77,186 - 77,186
As restated 18,300 3,442,866 232,277 3,693,443

Changes in equity
Dividends - (88,755 ) - (88,755 )
Total comprehensive income - 357,610 (8,683 ) 348,927
Balance at 31 December 2022 18,300 3,711,721 223,594 3,953,615

Changes in equity
Dividends - (128,100 ) - (128,100 )
Total comprehensive income - (2,974 ) (8,683 ) (11,657 )
Balance at 31 December 2023 18,300 3,580,647 214,911 3,813,858

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 1,295,098 559,000
Interest paid (708,545 ) (265,189 )
Interest element of finance lease payments paid (92,445 ) (64,510 )
Tax paid - (75,335 )
Net cash from operating activities 494,108 153,966

Cash flows from investing activities
Purchase of tangible fixed assets (733,107 ) (152,711 )
Sale of tangible fixed assets 735,851 625,290
Net cash from investing activities 2,744 472,579

Cash flows from financing activities
Finance lease capital raised/(repaid) (775,633 ) (824,430 )
Loans received/ (repaid) 143,135 162,762
Equity dividends paid (128,100 ) (88,755 )
Net cash from financing activities (760,598 ) (750,423 )

Decrease in cash and cash equivalents (263,746 ) (123,878 )
Cash and cash equivalents at beginning of year 2 (2,122,123 ) (1,998,245 )

Cash and cash equivalents at end of year 2 (2,385,869 ) (2,122,123 )

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 (194,814 ) 621,914
Depreciation charges 600,747 534,576
Profit on disposal of fixed assets (139,546 ) (73,926 )
Finance costs 800,990 329,699
1,067,377 1,412,263
Increase in inventories (211,478 ) (3,128,820 )
Decrease/(increase) in trade and other debtors 550,809 (863,435 )
(Decrease)/increase in trade and other creditors (111,610 ) 3,138,992
Cash generated from operations 1,295,098 559,000

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 (2,397,547 ) (2,133,637 )
(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 (2,133,637 ) (2,009,616 )
(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 ) (263,746 ) (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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 land0%
Freehold buildings4% straight line basis
Improvements to property10% straight line basis
Plant & machinery12.5% reducing balance basis
Motor vehicles25% reducing balance basis
Office equipment10% - 25% reducing balance basis or straight line basis
Hire assets10% 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 administration66
Sales5955
6561

Costs incurred were:- £ £
Wages and salaries2,552,9292,285,230
Social security costs248,182 225,320
Other pension costs49,09667,449
2,850,2072,578,000

2023 2022
£    £   
Directors' remuneration 374,682 385,574
Directors' pension contributions to money purchase schemes 29,283 28,385

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 4 5

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 77,972 79,741
Pension contributions to money purchase schemes 13,321 12,321

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 15,299 15,314
Depreciation - owned assets 255,962 245,577
Depreciation - assets on finance leases 344,785 288,999
Profit on disposal of fixed assets (139,546 ) (73,926 )
Foreign exchange differences 90 88
Auditors remuneration 16,000 16,500
Auditors remuneration - other services 8,000 4,700

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 (183,157 ) 272,987
Tax on (loss)/profit (183,157 ) 272,987

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 (194,814 ) 621,914
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

(48,704

)

118,164

Effects of:
Expenses not deductible for tax purposes (359 ) 13,365
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 128,100 88,755

8. PROPERTY, PLANT AND EQUIPMENT
Freehold Improvements
land & to Plant and
buildings property machinery
£    £    £   
COST
At 1 January 2023 842,196 60,346 602,190
Additions 398,912 - 159,274
Disposals - - (9,250 )
At 31 December 2023 1,241,108 60,346 752,214
DEPRECIATION
At 1 January 2023 194,478 45,347 277,982
Charge for year 33,697 3,022 34,620
Eliminated on disposal - - (4,901 )
At 31 December 2023 228,175 48,369 307,701
NET BOOK VALUE
At 31 December 2023 1,012,933 11,977 444,513
At 31 December 2022 647,718 14,999 324,208

Hire Motor Office
assets vehicles equipment Totals
£    £    £    £   
COST
At 1 January 2023 2,331,390 1,928,649 162,564 5,927,335
Additions 250,987 633,831 12,610 1,455,614
Disposals (693,788 ) (374,088 ) - (1,077,126 )
At 31 December 2023 1,888,589 2,188,392 175,174 6,305,823
DEPRECIATION
At 1 January 2023 505,497 811,020 149,508 1,983,832
Charge for year 206,530 320,015 2,863 600,747
Eliminated on disposal (248,906 ) (227,014 ) - (480,821 )
At 31 December 2023 463,121 904,021 152,371 2,103,758
NET BOOK VALUE
At 31 December 2023 1,425,468 1,284,371 22,803 4,202,065
At 31 December 2022 1,825,893 1,117,629 13,056 3,943,503

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 92,490 146,456
Goods for resale 12,369,233 12,103,789
Other stock 335,000 335,000
12,796,723 12,585,245

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 2,193,838 2,344,598
Other debtors 10,199 216,866
Prepayments and accrued income 164,908 358,290
2,368,945 2,919,754

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 13) 2,504,172 2,222,952
Other loans (see note 13) 341,250 325,000
Finance leases (see note 14) 756,896 713,567
Trade creditors 9,654,478 9,970,928
Social security and other taxes 83,019 97,521
VAT 229,712 76,171
Other creditors 102,000 48,221
Directors' current accounts 56,967 23,172
Accruals and deferred income 757,954 779,727
14,486,448 14,257,259

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 13) 134,526 24,951
Finance leases (see note 14) 654,773 751,228
789,299 776,179

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 2,397,547 2,133,637
Bank loans 106,625 89,315
Other loans 341,250 325,000
2,845,422 2,547,952

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 106,882 10,139

Amounts falling due between two and five years:
Bank loans - 2-5 years 27,644 14,812

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 756,896 713,567
Between one and five years 654,773 751,228
1,411,669 1,464,795

Non-cancellable operating leases
2023 2022
£    £   
Within one year 12,427 14,909
Between one and five years - 12,427
12,427 27,336

15. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 2,397,547 2,133,637
Other loans 341,250 325,000
Finance leases 1,411,669 1,464,795
Trade creditors 6,953,075 6,462,340
Bank loans 216,200 79,425
11,319,741 10,465,197

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 472,963
Accelerated capital allowances (14,839 )
Tax losses carried forward (168,318 )
Balance at 31 December 2023 289,806

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
18,300 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 164,908 375,499

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
£    £   
I J Scruton
Balance outstanding at start of year - -
Amounts advanced 7,938 16,358
Amounts repaid (7,938 ) (16,358 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - -

No interest is charged on overdrawn loan accounts.

22. RELATED PARTY DISCLOSURES

Key management personnel of the entity or its parent (in the aggregate)
2023 2022
£    £   
Rental of property from key management personnel 24,000 24,000
Amount due to related party 56,967 23,172

Other related parties
2023 2022
£    £   
Amount due to related party 88,875 36,375

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.