Company registration number 04289185 (England and Wales)
SIMPSONS (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
SIMPSONS (UK) LIMITED
COMPANY INFORMATION
Directors
Mr V Modi
Mr M Tibrewala
Mr B Tibrewala
(Appointed 19 October 2023)
Secretary
Mr M Gandhi
Company number
04289185
Registered office
Unit 1
Beacon Business Park
Lodge Way
Caldicot
Monmouthshire
United Kingdom
NP26 5PX
Auditor
UHY Hacker Young
Bradbury House
Mission Court
Newport
Gwent
United Kingdom
NP20 2DW
Bankers
HSBC
38 Gwent Square
Cwmbran
Newport
NP44 1XL
SIMPSONS (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 32
SIMPSONS (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Review of the business

The directors are content with the group's results for the year and are looking forward to progress in the coming year.

 

The trading results for the year and the group's financial position at the end of the year are shown in the attached financial statements. In addition to the monthly management accounts and information that is produced and monitored against the group's plan and the previous year's performance the Board uses key performance indicators in the management of the key risks of the business and as a measure of the business efficiencies of the group. The key performance indicators used to monitor performance are revenue and gross profit.

 

Revenue has decreased by 1.1% on the prior year. Gross profit margin has fallen to 10.8% (2023: 11.1%) for the year ended 31 March 2024. The reasons for the fall in revenue and gross profit margin are explained on page 2 under the Going concern and future prospects section.

 

Administrative expenses have however decreased by 6.8% on the prior year. This is mainly due to an increase in foreign exchange gains in the year from £0.2m in 2023 to £0.4m in the current year. This is a result of the movement of foreign exchange rates as a significant proportion of stock purchases are in Chinese Yuan.

 

The group's net assets were £9,338,208 at 31 March 2024 (2023: £8,447,369).

Principal risks and uncertainties

The group's principal financial instruments comprise bank balances, bank overdrafts, loans, trade creditors, trade debtors, and finance lease agreements. The group does not use derivative financial instruments for speculative purposes.

 

The group's activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk.

 

Cash flow risk - Loans bear fixed interest rates, therefore the group does not have significant exposure to adverse movements in interest rates. The group's activities expose it to the financial risks of changes in foreign currency exchange rates. The group does not actively manage foreign currency exposure, however, there is a reasonable degree of natural hedge between foreign monetary assets and liabilities.

 

Credit risk - The group's principal financial assets are bank balances and cash, and trade and other receivables. The group's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. The group has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

 

Liquidity risk - In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the group uses a mixture of long-term equity and short-term debt finance.

 

Price risk - The group is exposed to commodity price risk. The group does not manage its exposure to commodity price risk due to cost benefit considerations.

 

Foreign exchange risk - The group's activities expose it to the financial risks of change in foreign currency exchange rates. When it is appropriate the group uses forward exchange contracts to reduce risk and protect it against adverse short term exchange movements.

SIMPSONS (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Going concern and future prospects

The present economic condition still continues to present several challenges in running standard business operations, there are many factors contributing to the loss of business volumes and lack of new business  development opportunities.  

 

- Lower customer demand/volumes

- On-going war between Russia and Ukraine

- Rise in interest rates

- Rising energy costs

- Rise in cost of living

- Brexit - shift of business leading to higher operational costs and duplication of expenses

- Lower profit margin due to highly competitive market due to low demand

- Increase of import shipment costs due to Red Sea issues

- Increase of local freight costs

- Changes of raw material prices due to trading business

 

Our business is not meeting its sales budget due to above factors but the management still pursue running the business operations with hope of better growth opportunities in the coming years.

On behalf of the board

Mr M Tibrewala
Director
27 September 2024
SIMPSONS (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company and group continued to be that of the buying and selling of industrial dyes.

Results and dividends

The results for the year are set out on page 8.

 

A fair review of the business is set out in the strategic report on page 1.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr R J Tibrewala
(Resigned 19 October 2023)
Mr V Modi
Mr M Tibrewala
Mr B Tibrewala
(Appointed 19 October 2023)
Auditor

UHY Hacker Young have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditor in the absence of an Annual General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr M Tibrewala
Director
27 September 2024
SIMPSONS (UK) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SIMPSONS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SIMPSONS (UK) LIMITED
- 5 -
Opinion

We have audited the financial statements of Simpsons (UK) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 group and parent 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 group's and parent 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 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

SIMPSONS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIMPSONS (UK) LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

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 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 parent 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 parent 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.

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 misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the group and parent company's financial statements to material misstatements, including obtaining an understanding of how fraud might occur, by:

SIMPSONS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIMPSONS (UK) LIMITED
- 7 -

To address risk of fraud through management bias and override of controls, we:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from the financial statements, the less likely it is that we would become aware 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.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the members of Simpsons UK Limited, 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 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 Simpsons UK Limited and the members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr John Griffiths (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
27 September 2024
Chartered Accountants
Statutory Auditor
Newport
Gwent
United Kingdom
SIMPSONS (UK) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
27,422,609
27,716,954
Cost of sales
(24,461,171)
(24,653,539)
Gross profit
2,961,438
3,063,415
Administrative expenses
(2,158,220)
(2,315,872)
Other operating income
32,149
48,354
Operating profit
4
835,367
795,897
Interest payable and similar expenses
7
(51,711)
(61,870)
Profit before taxation
783,656
734,027
Tax on profit
8
(165,960)
(136,265)
Profit for the financial year
617,696
597,762
Profit for the financial year is all attributable to the owners of the parent company.
SIMPSONS (UK) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
£
£
Profit for the year
617,696
597,762
Other comprehensive income
Currency translation gain taken to retained earnings
273,143
334,870
Total comprehensive income for the year
890,839
932,632
Total comprehensive income for the year is all attributable to the owners of the parent company.
SIMPSONS (UK) LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
133,980
175,986
Current assets
Stocks
13
4,341,868
6,336,458
Debtors
14
10,663,446
7,083,490
Cash at bank and in hand
3,632,320
2,969,776
18,637,634
16,389,724
Creditors: amounts falling due within one year
15
(9,395,212)
(8,098,406)
Net current assets
9,242,422
8,291,318
Total assets less current liabilities
9,376,402
8,467,304
Provisions for liabilities
Deferred tax liability
17
38,194
19,935
(38,194)
(19,935)
Net assets
9,338,208
8,447,369
Capital and reserves
Called up share capital
19
17,681
17,681
Share premium account
486,355
486,355
Profit and loss reserves
8,834,172
7,943,333
Total equity
9,338,208
8,447,369

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 27 September 2024 and are signed on its behalf by:
27 September 2024
Mr M Tibrewala
Director
Company registration number 04289185 (England and Wales)
SIMPSONS (UK) LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
91,288
154,516
Investments
10
1,984
1,984
93,272
156,500
Current assets
Stocks
13
1,130,745
1,270,089
Debtors
14
5,158,001
5,157,621
Cash at bank and in hand
1,455,200
1,981,417
7,743,946
8,409,127
Creditors: amounts falling due within one year
15
(781,216)
(1,634,805)
Net current assets
6,962,730
6,774,322
Net assets
7,056,002
6,930,822
Capital and reserves
Called up share capital
19
17,681
17,681
Share premium account
486,355
486,355
Profit and loss reserves
6,551,966
6,426,786
Total equity
7,056,002
6,930,822

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £125,180 (2023 - £280,263 profit).

The financial statements were approved by the board of directors and authorised for issue on 27 September 2024 and are signed on its behalf by:
27 September 2024
Mr M Tibrewala
Director
Company registration number 04289185 (England and Wales)
SIMPSONS (UK) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2022
17,681
486,355
7,010,701
7,514,737
Year ended 31 March 2023:
Profit for the year
-
-
597,762
597,762
Other comprehensive income:
Currency translation differences
-
-
334,870
334,870
Total comprehensive income
-
-
932,632
932,632
Balance at 31 March 2023
17,681
486,355
7,943,333
8,447,369
Year ended 31 March 2024:
Profit for the year
-
-
617,696
617,696
Other comprehensive income:
Currency translation differences
-
-
273,143
273,143
Total comprehensive income
-
-
890,839
890,839
Balance at 31 March 2024
17,681
486,355
8,834,172
9,338,208
SIMPSONS (UK) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2022
17,681
486,355
6,146,523
6,650,559
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
280,263
280,263
Balance at 31 March 2023
17,681
486,355
6,426,786
6,930,822
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
125,180
125,180
Balance at 31 March 2024
17,681
486,355
6,551,966
7,056,002
SIMPSONS (UK) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
24
(463,154)
1,983,481
Interest paid
(51,711)
(61,870)
Income taxes refunded/(paid)
10,133
(278,741)
Net cash (outflow)/inflow from operating activities
(504,732)
1,642,870
Investing activities
Purchase of tangible fixed assets
(49,445)
(65,848)
Proceeds from disposal of tangible fixed assets
36,091
369,995
Net cash (used in)/generated from investing activities
(13,354)
304,147
Financing activities
Repayment of borrowings
3,149,554
351,690
Proceeds from new bank loans
1,044,910
-
Repayment of bank loans
(3,285,773)
(1,684,089)
Payment of finance leases obligations
-
(54,875)
Net cash generated from/(used in) financing activities
908,691
(1,387,274)
Net increase in cash and cash equivalents
390,605
559,743
Cash and cash equivalents at beginning of year
2,969,776
2,075,163
Effect of foreign exchange rates
271,939
334,870
Cash and cash equivalents at end of year
3,632,320
2,969,776
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
1
Accounting policies
Company information

Simpsons (UK) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 1, Beacon Business Park, Lodge Way, Caldicot, Monmouthshire, United Kingdom, NP26 5PX.

 

The group consists of Simpsons (UK) Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Simpsons (UK) Limited and all of its subsidiary Roha Polska s.p. z.o.o.

 

All financial statements are made up to 31 March 2024.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
10% on cost
Plant and equipment
10% - 25% on cost
Fixtures and fittings
10% - 25% on cost
Computers
30% on cost
Motor vehicles
25% or 33% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lies or the lease term, whichever is the shorter.

1.6
Fixed asset investments

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.10
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.11
Derivatives

The group enters into foreign exchange contracts in order to manage its exposure to foreign exchange risk.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

 

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
1.16
Foreign exchange

Foreign currency translation

The individual financial statements of each group entity are presented in the currency of the primary economic environment in which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position are presented in Sterling £.

 

Transactions and balances

In preparing the financial statements of the individual entities, transactions in currencies other than the functional currency of the individual entities (foreign currencies) are recognised at the spot rate at the dates of the transactions, or at an average rate where this rate approximates the actual rate at the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical costs in a foreign currency are not retranslated.

 

Exchange differences are recognised in the profit or loss in the period in which they arise. However, in the consolidated financial statements exchange differences arising on monetary items that form part of the net investment in a foreign operation are recognised in other comprehensive income and are not classified in profit or loss.

 

Translation of group companies

For the purpose of presenting consolidated financial statements, the assets and liabilities of the group's foreign operations are translated from their functional currency to Sterling £ using the closing exchange rate. Income and expenses are translated using the average rate for the period, unless the exchange rate fluctuated significantly during the period, in which case the exchange rates at the date of the transactions are used. Exchange differences arising on the translation of group companies are recognised in other comprehensive income and are not reclassified to profit or loss.

 

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stock valuation

At the year end, the group held stock of £4,341,868 (2023: £6,336,458). Stock is valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends.

SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
27,422,609
27,716,954
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
5,326,970
6,576,400
Europe
21,836,029
20,900,447
Asia & The Middle East
43,709
-
North America
9,562
20,398
South America
201,124
214,289
Africa
5,215
5,420
27,422,609
27,716,954
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(386,413)
(232,953)
Hedging instrument (gains)/losses
(3,062)
4,518
Fees payable to the group's auditor for the audit of the group's financial statements
13,125
12,600
Depreciation of owned tangible fixed assets
84,203
101,590
Profit on disposal of tangible fixed assets
(27,639)
(5,383)
Operating lease charges
202,055
165,072
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Sales
12
12
6
6
Production
13
10
7
6
Purchasing
2
1
1
1
Administration
6
3
3
3
Total
33
26
17
16
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,120,342
1,058,533
333,448
401,208
Social security costs
154,238
132,994
31,941
48,481
Pension costs
15,662
55,473
5,980
47,299
1,290,242
1,247,000
371,369
496,988
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
169,950
170,400
Company pension contributions to defined contribution schemes
1,211
41,211
171,161
211,611

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023: 1).

7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
56,506
57,338
Interest on finance leases and hire purchase contracts
-
3,608
Other interest
(4,795)
924
Total finance costs
51,711
61,870
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
45,219
75,695
Adjustments in respect of prior periods
-
0
(77)
Total UK current tax
45,219
75,618
Foreign current tax on profits for the current period
133,932
-
0
Total current tax
179,151
75,618
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Taxation
2024
2023
£
£
(Continued)
- 23 -
Deferred tax
Origination and reversal of timing differences
(13,191)
60,560
Adjustment in respect of prior periods
-
0
87
Total deferred tax
(13,191)
60,647
Total tax charge
165,960
136,265

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
783,656
734,027
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
195,914
139,465
Tax effect of expenses that are not deductible in determining taxable profit
244
169
Adjustments in respect of prior years
-
0
10
Effect of change in corporation tax rate
-
(2,162)
Permanent capital allowances in excess of depreciation
(4,873)
2,948
Depreciation on assets not qualifying for tax allowances
677
2,196
Effect of overseas tax rates
(21,573)
(72,983)
Other timing differences
(4,429)
66,622
Taxation charge
165,960
136,265
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
9
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2023
209,135
864,314
193,418
5,457
120,723
1,393,047
Additions
-
0
23,625
5,800
3,219
16,801
49,445
Disposals
-
0
(153,154)
-
0
-
0
(17,845)
(170,999)
Exchange adjustments
-
0
776
-
0
306
1,531
2,613
At 31 March 2024
209,135
735,561
199,218
8,982
121,210
1,274,106
Depreciation and impairment
At 1 April 2023
209,135
717,315
188,896
3,684
98,031
1,217,061
Depreciation charged in the year
-
0
64,781
6,602
1,729
11,091
84,203
Eliminated in respect of disposals
-
0
(151,642)
-
0
-
0
(10,905)
(162,547)
Exchange adjustments
-
0
337
-
0
206
866
1,409
At 31 March 2024
209,135
630,791
195,498
5,619
99,083
1,140,126
Carrying amount
At 31 March 2024
-
0
104,770
3,720
3,363
22,127
133,980
At 31 March 2023
-
0
146,999
4,522
1,773
22,692
175,986
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Tangible fixed assets
(Continued)
- 25 -
Company
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
209,135
850,453
193,418
93,375
1,346,381
Additions
-
0
-
0
5,800
16,801
22,601
Disposals
-
0
(153,154)
-
0
(17,845)
(170,999)
At 31 March 2024
209,135
697,299
199,218
92,331
1,197,983
Depreciation and impairment
At 1 April 2023
209,135
711,276
188,896
82,558
1,191,865
Depreciation charged in the year
-
0
62,009
6,602
8,766
77,377
Eliminated in respect of disposals
-
0
(151,642)
-
0
(10,905)
(162,547)
At 31 March 2024
209,135
621,643
195,498
80,419
1,106,695
Carrying amount
At 31 March 2024
-
0
75,656
3,720
11,912
91,288
At 31 March 2023
-
0
139,177
4,522
10,817
154,516
10
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
11
-
0
-
0
1,984
1,984
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
1,984
Carrying amount
At 31 March 2024
1,984
At 31 March 2023
1,984
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
11
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Roha Polska s.p. z.o.o.
Poland
Buying and selling of industrial dyes
Ordinary
99.50
12
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
222
-
222
-
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
-
2,839
-
2,839
13
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
4,341,868
6,336,458
1,130,745
1,270,089
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,986,924
5,245,702
1,164,625
1,179,094
Corporation tax recoverable
65,547
287,723
-
0
-
0
Amounts owed by group undertakings
1,138,023
1,108,489
3,925,021
3,902,128
Derivative financial instruments
222
-
222
-
Other debtors
3,309,811
318,063
53,672
70,700
Prepayments and accrued income
62,129
56,589
-
0
-
0
10,562,656
7,016,566
5,143,540
5,151,922
Amounts falling due after more than one year:
Deferred tax asset (note 17)
100,790
66,924
14,461
5,699
Total debtors
10,663,446
7,083,490
5,158,001
5,157,621

Derivative financial instruments relate to forward foreign currency contracts. The company enters into forward foreign currency contracts to mitigate the exchange rate risk for foreign currency payables. At 31 March 2024 the outstanding contracts all mature within 2 months (2023: 3 months) of the year end.

 

The forward currency contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key inputs used in valuing the derivatives are the forward exchange rates.

15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
16
539,354
2,780,217
-
0
-
0
Other borrowings
16
4,708,818
1,559,264
-
0
136,219
Trade creditors
2,842,442
2,472,302
377,495
892,186
Amounts owed to group undertakings
388,235
601,234
11,881
191,750
Corporation tax payable
45,219
75,695
45,219
75,695
Other taxation and social security
84,845
54,041
30,859
26,360
Derivative financial instruments
-
0
2,839
-
0
2,839
Other creditors
259,151
220,375
170,950
172,736
Accruals and deferred income
527,148
332,439
144,812
137,020
9,395,212
8,098,406
781,216
1,634,805
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
15
Creditors: amounts falling due within one year
(Continued)
- 28 -

Other borrowings include £4,708,818 (2023: £1,559,264) related to invoice finance and invoice factoring facilities which are secured against trade debtors.

 

Derivative financial instruments relate to forward foreign currency contracts. The company enters into forward foreign currency contracts to mitigate the exchange rate risk for foreign currency payables. At 31 March 2024 the outstanding contracts all mature within 2 months (2023: 3 months) of the year end.

 

The forward currency contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key inputs used in valuing the derivatives are the forward exchange rates.

16
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
539,354
2,780,217
-
0
-
0
Other borrowings
4,708,818
1,559,264
-
0
136,219
5,248,172
4,339,481
-
136,219
Payable within one year
5,248,172
4,339,481
-
0
136,219

Bank loans are secured by fixed and floating charges over all of the assets of the parent company dated 06 August 2004. HSBC UK Bank PLC holds a general letter of pledge dated 21 April 2011 and a contract monies charge dated 24 August 2010.

 

There is also a composite company multilateral guarantee in place with HSBC UK Bank PLC given by Simpsons (UK) Limited, refer to note 20.

17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
-
-
14,173
4,627
Retirement benefit obligations
-
-
344
362
Other timing differences
38,194
19,935
86,329
61,225
Derivatives
-
-
(56)
710
38,194
19,935
100,790
66,924
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
17
Deferred taxation
(Continued)
- 29 -
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
-
-
14,173
4,627
Retirement benefit obligations
-
-
344
362
Derivatives
-
-
(56)
710
-
-
14,461
5,699
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 April 2023
(46,989)
(5,699)
Credit to profit or loss
(15,607)
(8,762)
Asset at 31 March 2024
(62,596)
(14,461)
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
15,662
55,473

The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

At the year end the group had outstanding pension contributions of £4,248 (2023: £4,088), this amount being included within creditors due within one year.

19
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
17,681
17,681
17,681
17,681

Only one class of shares, therefore all shares rank pari passu.

SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
20
Financial commitments, guarantees and contingent liabilities

On 2 October 2008 Simpsons (UK) Limited entered into a composite company unlimited multilateral guarantee with HSBC Bank PLC.

 

The effect of this guarantee is that on demand by the bank, the companies will be solely or jointly liable to pay or discharge to the bank, all monies or liabilities which are due, owing or incurred by either company to the bank.

 

At 31 March 2024 the total owed to HSBC Bank PLC in respect of bank loans and overdrafts including invoice finance facilities by Simpsons (UK) Limited was £nil (2023: £136,219).

 

There is a guarantee in place dated 16 January 2015 in favour of HSBC for £100,000.

 

In addition, Roha Polska s.p. z.o.o. owed HSBC Bank PLC, in respect of bank loans and overdrafts including invoice factoring facilities, £5,248,172 (2023: £4,203,262).

21
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
111,815
110,007
101,248
100,000
Between two and five years
227,184
325,000
227,184
325,000
338,999
435,007
328,432
425,000
SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
22
Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel, who are also directors, is as follows:

            

2024
2023
£
£
Aggregate compensation
171,161
211,611
Transactions with related parties
Transactions during the current and previous years and balance at 31 March 2024 and 2023 with the parent company were as follows:
2024
2023
£
£
Sales to parent company
26,200
-
Purchases from parent company
(2,136,159)
(1,708,570)
Year end balance due (to) / from parent company
(332,580)
(532,501)
Transactions during the current and previous years and balance at 31 March 2024 and 2023 with other group companies were as follows:
2024
2023
£
£
Sales to other group companies
271,813
590,329
Purchases from other group companies
(390,884)
(553,376)
Total year end balances due from other group companies
1,110,714
1,107,759
Total year end balances due to other group companies
(25,493)
(68,003)
In addition, at the year end, the group owed £192,195 (2023: £192,790) to related parties under common control.
Guarantees

On 2 October 2008 Simpsons (UK) Limited entered into a composite company unlimited multilateral guarantee with HSBC Bank PLC.

 

The effect of this guarantee is that on demand by the bank, the companies will be solely or jointly liable to pay or discharge to the bank, all monies or liabilities which are due, owing or incurred by either company to the bank.

 

At 31 March 2024 the total owed to HSBC Bank PLC in respect of bank loans and overdrafts including invoice finance facilities by Simpsons (UK) Limited was £nil (2023: £136,219).

 

There is a guarantee in place dated 16 January 2015 in favour of HSBC for £100,000.

 

In addition, Roha Polska s.p. z.o.o. owed HSBC Bank PLC, in respect of bank loans and overdrafts including invoice factoring facilities, £5,248,172 (2023: £4,203,262).

23
Controlling party

The group is ultimately controlled by Roha Dyechem Private Limited, whose registered office is JJT House Plot Number A/44-45, Road Number 2, M.I.D.C., Andheri (E), Mumbai - 400 093, India.

 

Roha Dyechem Private Limited is the parent of the smallest and largest group of which the group is a member.

SIMPSONS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
24
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit for the year after tax
617,696
597,762
Adjustments for:
Taxation charged
165,960
136,265
Finance costs
51,711
61,870
Gain on disposal of tangible fixed assets
(27,639)
(5,383)
Fair value (gain) / loss on foreign exchange contracts
(3,061)
4,518
Depreciation and impairment of tangible fixed assets
84,203
101,590
Movements in working capital:
Decrease in stocks
1,994,590
732,346
(Increase)/decrease in debtors
(3,768,044)
2,329,150
Increase/(decrease) in creditors
421,430
(1,974,637)
Cash (absorbed by)/generated from operations
(463,154)
1,983,481
25
Analysis of changes in net debt - group
1 April 2023
Cash flows
Exchange rate movements
31 March 2024
£
£
£
£
Cash at bank and in hand
2,969,776
390,605
271,939
3,632,320
Borrowings excluding overdrafts
(4,339,481)
(908,691)
-
(5,248,172)
(1,369,705)
(518,086)
271,939
(1,615,852)
2024-03-312023-04-01falseCCH SoftwareCCH Accounts Production 2024.200Mr R J TibrewalaMr V ModiMr M TibrewalaMr B TibrewalaMr M 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