Acorah Software Products - Accounts Production 15.0.600 false true 31 December 2022 1 January 2022 true 11 June 2024 true 1 January 2023 31 December 2023 31 December 2023 NI037118 Mr Iain Finlay Mercer Mrs Margaret Edith Elise Mercer Mr Iain Finlay Mercer true iso4217:GBP iso4217:EUR iso4217:USD xbrli:shares xbrli:pure xbrli:pure NI037118 frs-core:Non-currentFinancialInstruments frs-core:BetweenOneFiveYears 2023-12-31 NI037118 2022-12-31 NI037118 2023-12-31 NI037118 2023-01-01 2023-12-31 NI037118 frs-core:CurrentFinancialInstruments 2023-12-31 NI037118 frs-core:Non-currentFinancialInstruments 2023-12-31 NI037118 frs-core:BetweenOneFiveYears 2023-12-31 NI037118 frs-core:ComputerEquipment 2023-12-31 NI037118 frs-core:ComputerEquipment 2023-01-01 2023-12-31 NI037118 frs-core:ComputerEquipment 2022-12-31 NI037118 frs-core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-01-01 2023-12-31 NI037118 frs-core:FurnitureFittings 2023-12-31 NI037118 frs-core:FurnitureFittings 2023-01-01 2023-12-31 NI037118 frs-core:FurnitureFittings 2022-12-31 NI037118 frs-core:MoreThanFiveYears 2023-12-31 NI037118 frs-core:MotorVehicles 2023-12-31 NI037118 frs-core:MotorVehicles 2023-01-01 2023-12-31 NI037118 frs-core:MotorVehicles 2022-12-31 NI037118 frs-core:OtherResidualIntangibleAssets 2023-12-31 NI037118 frs-core:OtherResidualIntangibleAssets 2023-01-01 2023-12-31 NI037118 frs-core:OtherResidualIntangibleAssets 2022-12-31 NI037118 frs-core:WithinOneYear 2023-12-31 NI037118 frs-core:CapitalRedemptionReserve 2023-12-31 NI037118 frs-core:ShareCapital 2023-12-31 NI037118 frs-core:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 NI037118 frs-core:RetainedEarningsAccumulatedLosses 2023-12-31 NI037118 frs-core:RetainedEarningsAccumulatedLosses 2023-12-31 NI037118 frs-bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 NI037118 frs-bus:FullAccounts 2023-01-01 2023-12-31 NI037118 frs-bus:MediumEntities 2023-01-01 2023-12-31 NI037118 frs-bus:Audited 2023-01-01 2023-12-31 NI037118 frs-bus:Medium-sizedCompaniesRegimeForAccounts 2023-01-01 2023-12-31 NI037118 frs-bus:Medium-sizedCompaniesRegimeForDirectorsReport 2023-01-01 2023-12-31 NI037118 frs-bus:OrdinaryShareClass1 2023-01-01 2023-12-31 NI037118 frs-bus:OrdinaryShareClass1 2023-12-31 NI037118 1 2023-01-01 2023-12-31 NI037118 frs-core:DeferredTaxation 2023-01-01 2023-12-31 NI037118 frs-core:DeferredTaxation 2022-12-31 NI037118 frs-core:DeferredTaxation 2023-12-31 NI037118 frs-bus:Director1 2023-01-01 2023-12-31 NI037118 frs-bus:Director1 2022-12-31 NI037118 frs-bus:Director1 2023-12-31 NI037118 frs-bus:Director2 2023-01-01 2023-12-31 NI037118 frs-bus:CompanySecretary1 2023-01-01 2023-12-31 NI037118 1 2023-01-01 2023-12-31 NI037118 frs-countries:NorthernIreland 2023-01-01 2023-12-31 NI037118 frs-core:Non-currentFinancialInstruments frs-core:BetweenOneFiveYears 2022-12-31 NI037118 2021-12-31 NI037118 2022-12-31 NI037118 2022-01-01 2022-12-31 NI037118 frs-core:CurrentFinancialInstruments 2022-12-31 NI037118 frs-core:Non-currentFinancialInstruments 2022-12-31 NI037118 frs-core:BetweenOneFiveYears 2022-12-31 NI037118 frs-core:MoreThanFiveYears 2022-12-31 NI037118 frs-core:WithinOneYear 2022-12-31 NI037118 frs-core:CapitalRedemptionReserve 2021-12-31 NI037118 frs-core:CapitalRedemptionReserve 2022-12-31 NI037118 frs-core:ShareCapital 2021-12-31 NI037118 frs-core:ShareCapital 2022-12-31 NI037118 frs-core:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 NI037118 frs-core:RetainedEarningsAccumulatedLosses frs-core:PreviouslyStatedAmount 2021-12-31 NI037118 frs-core:RetainedEarningsAccumulatedLosses 2022-12-31 NI037118 frs-core:RetainedEarningsAccumulatedLosses 2021-12-31 NI037118 frs-core:RetainedEarningsAccumulatedLosses 2022-12-31 NI037118 frs-core:RetainedEarningsAccumulatedLosses frs-core:PriorPeriodErrorIncreaseDecrease 2021-12-31 NI037118 frs-bus:OrdinaryShareClass1 2022-01-01 2022-12-31 NI037118 1 2022-01-01 2022-12-31
Registered number: NI037118
Mercer Agencies Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 31 December 2023
McCleary & Company Ltd.
Contents
Page
Company Information 1
Strategic Report 2
Directors' Report 3—4
Independent Auditor's Report 5—7
Profit and Loss Account 8
Statement of Comprehensive Income 9
Balance Sheet 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 14—20
Page 1
Company Information
Directors Mr Iain Finlay Mercer
Mrs Margaret Edith Elise Mercer
Secretary Mr Iain Finlay Mercer
Company Number NI037118
Registered Office Moira Ind. Estate
Old Kilmore Road
Moira
BT67 0LZ
Business Moira Ind. Estate
Old Kilmore Road
Moira
BT67 0LZ
Auditors McCleary & Company Ltd
Quaker Buildings
High Street
Lurgan
Co. Armagh
BT66 8BB
Bankers Bank of Ireland
4-8 High Street
Belfast
Co. Antrim
BT1 2BA
Page 1
Page 2
Strategic Report
The directors present their strategic report for the year ended 31 December 2023.
Review of the Business
The results for the year show a pre-tax loss of £1,068,584, compared to a profit of £218,890 in the previous year. Gross profit for the year was 25.40% (2022: 31.60%). The company has net debt of £1,781,142 (2022: net debt £3,629,182)
The external commercial environment is expected to be very challenging in the year to 31 December 2024, however, we remain confident that the strategies implemented, and the planned growth initiatives will position the company for a successful future.
Principal Risks and Uncertainties
The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the business are considered to relate to competition and the general economic climate.
On behalf of the board
Mr Iain Finlay Mercer
Director
11 June 2024
Page 2
Page 3
Directors' Report
The directors present their report and the financial statements for the year ended 31 December 2023.
Principal Activity
The principal activity of the company in the year under review was that of wholesaling of seasonal goods.
Dividends
An interim dividend of £40,000 per share was paid on 22 March 2023. The directors recommend that no final dividend be paid.
The total distribution of dividends for the year ended 31 December 2023 will be £80,000 .
Directors
The directors who held office during the year were as follows:
Mr Iain Finlay Mercer
Mrs Margaret Edith Elise Mercer
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, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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 the financial statements the directors are required to:
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
  • 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved: 
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Page 3
Page 4
Independent Auditors
The auditors, McCleary & Company Ltd, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
Mr Iain Finlay Mercer
Director
11 June 2024
Page 4
Page 5
Independent Auditor's Report
Opinion
We have audited the financial statements of Mercer Agencies Limited for the year ended 31 December 2023 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes of Equity, Cash Flow Statement and the related notes, 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit/(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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions Relating to Going Concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.
Page 5
Page 6
Matters on Which We Are Required to Report by Exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
  • 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 or 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.
Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on page 3—4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Having considered the nature of the business and the sector in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to breaches of health and safety laws and the potential of fraud. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that do not have a direct impact on the preparation of the financial statements but compliance with which may be fundamental to the Company's ability to operate such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed included:
- Assessment of compliance with key laws and regulations;
- Enquiry with management including any known or suspected instances of non-compliance with laws and regulations, potential litigation and fraud;
- Identifying and testing journal entries for appropriateness, evaluating the rationale for significant transactions outside what is normal for the company and assessing whether the judgments made in making accounting estimates are indicative of potential bias, in order to assess the risk of fraud through management override of controls;
- Analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- Reviewing assumptions and judgments made by management in significant accounting estimates;
- Reviewing the disclosures in the financial statements against the specific legal requirements.
We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures outlined above. We are less likely to become aware of instances with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Page 6
Page 7
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 that 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.
John McCleary (Senior Statutory Auditor)
for and on behalf of McCleary & Company Ltd , Statutory Auditor
11 June 2024
McCleary & Company Ltd
Quaker Buildings
High Street
Lurgan
Co. Armagh
BT66 8BB
Page 7
Page 8
Profit and Loss Account
2023 2022
Notes £ £
TURNOVER 3 10,545,920 10,921,801
Cost of sales (7,964,305 ) (7,470,530 )
GROSS PROFIT 2,581,615 3,451,271
Distribution costs (336,555 ) (443,395 )
Administrative expenses (3,082,806 ) (2,648,845 )
Other operating income 5,810 2,500
OPERATING (LOSS)/PROFIT 4 (831,936 ) 361,531
Interest payable and similar charges 9 (236,648 ) (142,641 )
(LOSS)/PROFIT BEFORE TAXATION (1,068,584 ) 218,890
Tax on (Loss)/profit 10 226,272 (38,532 )
(LOSS)/PROFIT AFTER TAXATION BEING (LOSS)/PROFIT FOR THE FINANCIAL YEAR (842,312 ) 180,358
The notes on pages 13 to 20 form part of these financial statements.
Page 8
Page 9
Statement of Comprehensive Income
2023 2022
£ £
LOSS FOR THE FINANCIAL YEAR (842,312 ) 180,358
OTHER COMPREHENSIVE INCOME FOR THE YEAR - -
Prior year adjustment - (691,623)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR (842,312 ) (511,265 )
Page 9
Page 10
Balance Sheet
2023 2022
Notes £ £ £ £
FIXED ASSETS
Intangible Assets 11 192,145 199,693
Tangible Assets 12 130,475 155,310
322,620 355,003
CURRENT ASSETS
Stocks 13 3,057,838 6,005,635
Debtors 14 2,293,407 2,558,043
Cash at bank and in hand 14,345 33,208
5,365,590 8,596,886
Creditors: Amounts Falling Due Within One Year 15 (3,102,619 ) (4,981,879 )
NET CURRENT ASSETS (LIABILITIES) 2,262,971 3,615,007
TOTAL ASSETS LESS CURRENT LIABILITIES 2,585,591 3,970,010
Creditors: Amounts Falling Due After More Than One Year 16 (353,562 ) (755,927 )
PROVISIONS FOR LIABILITIES
Deferred Taxation - (59,840 )
NET ASSETS 2,232,029 3,154,243
CAPITAL AND RESERVES
Called up share capital 19 100 2
Capital redemption reserve 200,000 200,000
Profit and Loss Account 2,031,929 2,954,241
SHAREHOLDERS' FUNDS 2,232,029 3,154,243
On behalf of the board
Mrs Margaret Edith Elise Mercer
Director
11 June 2024
The notes on pages 13 to 20 form part of these financial statements.
Page 10
Page 11
Statement of Changes in Equity
Share Capital Capital Redemption Profit and Loss Account Total
£ £ £ £
As at 1 January 2022 as previously stated 2 200,000 3,545,506 3,745,508
Prior year adjustment - - (691,623 ) (691,623 )
As at 1 January 2022 as restated 2 200,000 2,853,883 3,053,885
2,853,883
Profit for the year and total comprehensive income - - 180,358 180,358
Dividends paid - - (80,000) (80,000)
As at 31 December 2022 and 1 January 2023 2 200,000 2,954,241 3,154,243
Loss for the year and total comprehensive income - - (842,312 ) (842,312)
Dividends paid - - (80,000) (80,000)
Arising on shares issued during the period 98 - - 98
As at 31 December 2023 100 200,000 2,031,929 2,232,029
Page 11
Page 12
Statement of Cash Flows
2023 2022
Notes £ £
Cash flows from operating activities
Net cash generated from operations 1 2,807,138 820,240
Interest paid (236,648 ) (142,641 )
Tax paid (216,181 ) (255,583 )
Net cash generated from operating activities 2,354,309 422,016
Cash flows from investing activities
Purchase of intangible assets (19,478 ) (21,265 )
Purchase of tangible assets (19,048 ) (117,470 )
Proceeds from disposal of tangible assets 11,334 50,503
Grants received/(refunded) 5,810 (21,250 )
Net cash used in investing activities (21,382 ) (109,482 )
Cash flows from financing activities
Proceeds from issue of share capital 98 -
Equity dividends paid (80,000 ) (80,000 )
Proceeds from new bank borrowings - 734,677
Repayment of bank borrowings (407,151 ) -
Amount introduced by directors 85,105 85,406
Amount withdrawn by directors (82,937) (75,527)
Net cash (used in)/generated from financing activities (484,885 ) 664,556
Increase in cash and cash equivalents 1,848,042 977,090
Cash and cash equivalents at beginning of year 2 (3,629,182 ) (4,606,272 )
Cash and cash equivalents at end of year 2 (1,781,140 ) (3,629,182 )
Page 12
Page 13
Notes to the Statement of Cash Flows
1. Reconciliation of (loss)/profit for the financial year to cash generated from operations
2023 2022
£ £
(Loss)/profit for the financial year (842,312 ) 180,358
Adjustments for:
Tax on (loss)/profit (226,272 ) 38,532
Interest expense 236,648 142,641
Amortisation of intangible assets 27,026 19,256
Depreciation of tangible assets 33,443 40,258
Profit on disposal of tangible assets (894) (14,502)
Grant income (5,810) (2,500)
Movements in working capital:
Decrease/(increase) in stocks 2,947,797 (2,499,420 )
Decrease in trade and other debtors 453,944 3,584,137
Increase/(decrease) in trade and other creditors 183,568 (668,520 )
Net cash generated from operations 2,807,138 820,240
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2023 2022
£ £
Cash at bank and in hand 14,345 33,208
Overdraft facilities repayable on demand (1,795,485 ) (3,662,390 )
Cash and cash equivalents as stated in the Statement of Cash Flows (1,781,140) (3,629,182)
3. Analysis of changes in net debt
As at 1 January 2023 Cash flows As at 31 December 2023
£ £ £
Cash at bank and in hand 33,208 (18,863) 14,345
Overdraft facilities repayable on demand (3,662,390) 1,866,905 (1,795,485)
Cash and cash equivalents (3,629,182 ) 1,848,042 (1,781,140 )
Debts falling due after more than one year (734,677) 407,151 (327,526)
(4,363,859) 2,255,193 (2,108,666)
Page 13
Page 14
Notes to the Financial Statements
1. General Information
Mercer Agencies Limited is a private company, limited by shares, incorporated in Northern Ireland, registered number NI037118 . The registered office is Moira Ind. Estate, Old Kilmore Road, Moira, BT67 0LZ.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Turnover
Turnover represents the total invoice value, excluding value added tax, of sales made during the year and derives from the provision of goods and services falling within the company's ordinary activities.
2.3. Intangible Fixed Assets and Amortisation - Other Intangible
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Computer software is being amortised evenly over its estimated useful life of ten years.
2.4. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Motor Vehicles 25% on cost and 25% on reducing balance
Fixtures & Fittings 25% on reducing balance
Computer Equipment 25% on reducing balance and 10% on cost
2.5. Leasing and Hire Purchase Contracts
Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors.
Where goods are sold using finance leases, the entity recognises turnover from the sale of goods and the rights to receive future lease payments as a debtor. Minimum lease payments are apportioned between finance income and the reduction of the lease debtor with finance income allocated so as to produce a constant periodic rate of interest on the net investment in the finance lease.
Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.
2.6. Stocks and Work in Progress
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.
2.7. Foreign Currencies
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 differences are taken into account in arriving at the operating result.
Page 14
Page 15
2.8. 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.
2.9. Pensions
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.
3. Turnover
The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the company.
The Directors believe that the disclosure of turnover by geographical area would be seriously prejudicial to the interests of the Company and therefore this information has not been disclosed.
4. Operating (Loss)/profit
The operating (loss)/profit is stated after charging/(crediting):
2023 2022
£ £
Bad debts (6,146) 201,833
Depreciation of tangible fixed assets 33,443 40,258
Amortisation of intangible fixed assets 27,026 19,256
Profit on disposal of tangible fixed assets (894 ) (14,502 )
5. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2023 2022
£ £
Audit Services
Audit of the company's financial statements 14,875 19,598
Other Services
Other non-audit services 3,000 3,000
Page 15
Page 16
6. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2023 2022
£ £
Wages and salaries 863,166 879,532
Social security costs 83,420 92,827
Other pension costs 131,615 124,358
1,078,201 1,096,717
7. Average Number of Employees
Average number of employees, including directors, during the year was as follows:
2023 2022
Office and administration 27 30
27 30
8. Directors' remuneration
2023 2022
£ £
Emoluments 24,669 24,729
Company contributions to money purchase pension schemes 110,836 104,008
135,505 128,737
9. Interest Payable and Similar Charges
2023 2022
£ £
Bank loans and overdrafts 154,396 85,666
Other finance charges 82,252 56,975
236,648 142,641
10. Tax on Profit
The tax (credit)/charge on the (loss)/profit for the year was as follows:
Tax Rate 2023 2022
2023 2022 £ £
Current tax
UK Corporation Tax 19.0% 19.0% 21,719 22,740
Deferred Tax
Deferred taxation (247,991 ) 15,792
Total tax charge for the period (226,272 ) 38,532
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the (loss)/profit and the standard rate of corporation tax as follows:
...CONTINUED
Page 16
Page 17
2023 2022
£ £
Profit before tax (1,068,584) 218,890
Tax on profit at 19% (UK standard rate) (203,031 ) 41,589
Expenses not deductible for tax purposes 1,291 4,286
Capital allowances (1,094 ) (7,343 )
Prior period adjustment 21,719 -
Deferred tax relating to changes in tax rates or laws (45,157 ) -
Total tax charge for the period (226,272) 38,532
11. Intangible Assets
Other
£
Cost
As at 1 January 2023 228,096
Additions 19,478
As at 31 December 2023 247,574
Amortisation
As at 1 January 2023 28,403
Provided during the period 27,026
As at 31 December 2023 55,429
Net Book Value
As at 31 December 2023 192,145
As at 1 January 2023 199,693
12. Tangible Assets
Motor Vehicles Fixtures & Fittings Computer Equipment Total
£ £ £ £
Cost
As at 1 January 2023 44,804 233,810 117,761 396,375
Additions - 5,571 13,477 19,048
Disposals (34,895 ) - (953 ) (35,848 )
As at 31 December 2023 9,909 239,381 130,285 379,575
Depreciation
As at 1 January 2023 25,572 196,331 19,162 241,065
Provided during the period 4,133 10,126 19,184 33,443
Disposals (24,958 ) - (450 ) (25,408 )
As at 31 December 2023 4,747 206,457 37,896 249,100
Net Book Value
As at 31 December 2023 5,162 32,924 92,389 130,475
As at 1 January 2023 19,232 37,479 98,599 155,310
Page 17
Page 18
13. Stocks
2023 2022
£ £
Stock 3,057,838 6,005,635
14. Debtors
2023 2022
£ £
Due within one year
Trade debtors 1,710,540 1,870,487
Other debtors 582,867 687,556
2,293,407 2,558,043
15. Creditors: Amounts Falling Due Within One Year
2023 2022
£ £
Trade creditors 579,380 243,541
Bank loans and overdrafts 1,795,485 3,662,390
Other creditors 516,665 534,203
Corporation tax - 194,462
Taxation and social security 23,077 104,420
Accruals and deferred income 188,012 242,863
3,102,619 4,981,879
16. Creditors: Amounts Falling Due After More Than One Year
2023 2022
£ £
Bank loans 327,526 734,677
Accruals and deferred income 26,036 21,250
353,562 755,927
The following secured debts are included within creditors:
2023 2022
£ £
Bank loans and overdrafts 1,795,485 3,662,390
Included within the secured bank overdrafts, is an amount of £489,499. This relates to the outstanding balances on the sterling and dollar sales invoicing bank accounts. These balances are secured on the book debts of the Company. The secured bank overdrafts also includes an amount of £503,992 which relates to an amount owed to stock facility.
The Bank also hold a fixed and floating charge over all the assets of the Company. This charge is to cover any other borrowings.
Another lender included within bank loans also has a fixed and floating charge over the assets of the company.
Page 18
Page 19
17. Loans
An analysis of the maturity of loans is given below:
2023 2022
£ £
Amounts falling due between one and five years:
Bank loans 327,526 734,677
18. Provisions for Liabilities
Deferred Tax Total
£ £
As at 1 January 2023 59,840 59,840
Deferred taxation (247,991 ) (247,991 )
Balance at 31 December 2023 (188,151 ) (188,151)
19. Share Capital
2023 2022
Allotted, called up and fully paid £ £
100 Ordinary Shares of £ 1.00 each 100 2
Shares issued during the period: £
98 Ordinary Shares of £ 1.00 each 98
20. Other Commitments
Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£ £
Not later than one year 285,000 285,000
Later than one year and not later than five years 959,167 1,029,167
Later than five years 698,750 913,750
1,942,917 2,227,917
21. Directors Advances, Credits and Guarantees
The following advances and credits to directors subsisted during the years ended 31 December 2023:
As at 1 January 2023 Amounts advanced Amounts repaid Amounts written off As at 31 December 2023
£ £ £ £ £
Mr Iain Mercer (8,365 ) 82,937 (85,104 ) - (10,532 )
22. Dividends
2023 2022
£ £
On equity shares:
Interim dividend paid 80,000 80,000
Page 19
Page 20
23. Related Party Disclosures
One of the directors has given a personal guarantee in the sum of £200,000 to the Bank of Ireland, as security against the company's bank borrowings.
24. Controlling Parties
The ultimate controlling parties are the directors due to their equity shareholding in the company.
Page 20