Company registration number 11695462 (England and Wales)
WALKERS INVESTMENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
WALKERS INVESTMENTS LIMITED
COMPANY INFORMATION
Directors
J J Craig
D R Nixon
(Appointed 18 July 2023)
Company number
11695462
Registered office
Walkers House
Brickfield Road
Birmingham
B25 8HE
Auditor
Sumer Auditco Limited
The Beehive
City Place
Gatwick
RH6 0PA
WALKERS INVESTMENTS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 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 - 33
WALKERS INVESTMENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

Walkers Chocolates Limited, the wholly owned trading subsidiary, is a Birmingham based, independent family chocolate maker since 1963, supplying filled chocolates, truffles, bars, easter eggs and other chocolate confectionery. The group supplies most superstores, discount stores and other wholesalers.

 

The group significantly increased its turnover in 2023 as the benefits of range rationalisation, investments in new sectors and margin development took full affect. Operating margins in previous years have been put under considerable pressure as we have seen sharp rises in energy prices, labour rates and raw materials, this remained a continued challenge specifically with raw materials through 2023. Macro-economic and geopolitical troubles, however eased during 2023, and gross profit margins have increased by 4.7%. Strategies are in place to continue this growth in turnover and profitability, as we continue to rationalise the product portfolio, and customer sectors; working with our long-term customer base as we navigate the new market conditions.

 

The Management team has seen several changes and additions through the end of 2022 and into the beginning of 2023, strengthening core areas of the business and focusing on efficiencies, sourcing and sales growth. This investment has allowed the business to execute on its strategic plan.

 

The group entered the year with a very strong balance sheet and the directors and wider management team acted quickly to reduce costs and trigger pass through pricing to offset rising raw material rises. There is an £8m loan facility in place, with £7.9m drawn down at the year end.

 

There has been further investment in the vegan facility, expanding our capabilities within the sector. Further investments in core manufacturing lines gives us opportunity to capitalise on the growth available within the wider confectionary landscape.

 

Despite the net losses incurred in 2022 and 2023, the group maintains significant net current assets of £5.2m (2022: £3.8m), illustrating the continued liquidity. Overall group net assets have reduced to £0.1m (2022: £2.0m). The directors are confident that as post year end trading results of Walkers Chocolates Limited improve, group net asset levels will be restored.

 

Principal risks and uncertainties

The group uses various financial instruments such as related party loans, hire purchase, plus various other items, such as debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the group’s operations.

 

The existence of these financial instruments exposes the group to a number of financial risks, which are described in more detail below. The directors review and agree policies for managing these risks. These policies have remained unchanged from previous years. The group does not use derivative financial instruments for speculative purposes.

 

Interest rate risk

The group's exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and floating facilities.

 

The group has tangible fixes assets on hire purchase attracting interest. These interest payments are fixed and the risk of fluctuations in interest rates are therefore low.

 

The group has use of a flexible loan facility of up to £8,000,000 from a related party, this loan is interest free, reducing the interest rate risk the company is exposed to.

 

The board feel that the group has taken appropriate measures to mitigate the risk of interest rate fluctuations to within tolerable parameters.

 

Price risk

The group is exposed to commodity price risk as a result of its operations. Prices are monitored throughout the year and prices are secured on contractual volumes where appropriate to reduce the risk of exposure to the group.

WALKERS INVESTMENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties (continued)

 

Liquidity risk

The group seeks to manage financial risk by ensuring liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The directors regularly monitors the cash flow projections of the company in order to ensure that it has sufficient available funds for its continuing operations. Short term flexibility is achieved by the use of the £8,000,000 flexible loan facility provided by a related party.

 

Credit risk

The principal credit risk arises from the group's trade debtors.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis to ensure that suitable payment arrangements are made with customers and that debt risk is monitored.

 

Provision is made for doubtful debts where necessary. With the use of credit insurance, strong credit control and based on the customer portfolio, the directors are satisfied the bad debt risk is minimised.

 

Foreign currency risk

Foreign currency risk is managed through the regular monitoring of risk policies and systems. The director is satisfied that these risks have been adequately managed through the year.

 

Concentration risk

The group is in constant contact with markets, and ensures all new opportunities are explored. The diversity of the group's confectionery products and customers ensure there is no reliance on any one particular product or customer.

Key performance indicators

Key performance indicators ('KPI's) are monitored on a regular basis by the directors and senior management team.

 

The KPI's used by the group to monitor its overall financial performance and position can be summarised as follows:

 

 

2023

 

2022

Turnover

£27.8m

 

£22.6m

Turnover growth

22.7%

 

0.3%

Gross profit %

18.8%

 

14.0%

Net current assets

£5.2m

 

£3.8m

Net assets

£0.1m

 

£2.0m

 

The directors are satisfied that turnover levels have increased despite challenging trading conditions. Post year end growth has been achieved and the directors are optimistic that desired sales growths can be achieved from new and existing customers. The investment made into new confectionary markets will enable the group to secure additional income streams, particularly given the new segment has less competition and improved profitably.

 

The group continues to have significant current assets demonstrating the group's liquidity. Net assets have reduced at the year-end, however the directors are confident that as post year end trading results of Walkers Chocolates Limited improve, group net asset levels will be restored.

WALKERS INVESTMENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Future developments

The group will continue to manufacture and wholesale confectionery.

 

As we moved into 2024, investments have continued, and accelerate our drive to profitable growth. The business has successfully realigned its category and customer split. This strategy has led to significant successful contract awards, within new markets and new sectors; bringing new customers and partners into the business portfolio.

 

The directors will continue to monitor profit margins, cost control and sales growth in the forthcoming year. The group's growth strategy is based around strong customer partnership and continued development of sustainable products and innovation; along with development of automation solutions.

 

The group has sufficient financial resources in place to execute its strategy and continue to develop into the future.

On behalf of the board

D R Nixon
Director
7 October 2024
WALKERS INVESTMENTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of a holding company. The principal activity of the group continued to be that of the wholesale of confectionery and food, and the manufacture of confectionery.

Results and dividends

The results for the year are set out on page 9.

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:

J J Craig
I Majid
(Resigned 5 July 2023)
D R Nixon
(Appointed 18 July 2023)
Political donations

The group made political donations of £Nil in the current year (2022: £5,000).

Research and development

The group continues to utilise its in-house technical expertise to continually develop new techniques and product lines. By constantly investing in talented individuals, advancing technology and our clients’ visions, the group continues to develop and improve its processes and product offering.

Auditor

Sumer Auditco Limited were appointed as auditor to the group and deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

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.

WALKERS INVESTMENTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Strategic report

In accordance with s414(c)(11) of the Companies Act, included in the strategic report is information relating to the future developments of the business which would otherwise be required by schedule 7 of the "Large and Medium Sized Company's (Accounts and Reports) Regulations 2008" to be contained in the directors reporttrue.

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.

On behalf of the board
D R Nixon
Director
7 October 2024
WALKERS INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WALKERS INVESTMENTS LIMITED
- 6 -
Opinion

We have audited the financial statements of Walkers Investments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise 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:

WALKERS INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WALKERS INVESTMENTS LIMITED
- 7 -
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.

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.

 

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

 

Firstly, the group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

 

Secondly, the group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the group's license to operate. We identified the following areas as those most likely to have such an effect: laws related to food safety and hygiene, employment law, health and saftey and data protection.

 

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.

WALKERS INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WALKERS INVESTMENTS LIMITED
- 8 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:

 

 

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 company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Caroline Snape (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited
7 October 2024
Statutory Auditor
The Beehive
City Place
Gatwick
RH6 0PA
WALKERS INVESTMENTS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
27,791,557
22,647,245
Cost of sales
(22,580,387)
(19,474,526)
Gross profit
5,211,170
3,172,719
Distribution costs
(801,591)
(747,649)
Administrative expenses
(6,098,031)
(5,583,215)
Operating loss
4
(1,688,452)
(3,158,145)
Interest receivable and similar income
8
298
-
0
Interest payable and similar expenses
9
(177,467)
(164,649)
Loss before taxation
(1,865,621)
(3,322,794)
Tax on loss
10
-
0
478,845
Loss for the financial year
23
(1,865,621)
(2,843,949)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
WALKERS INVESTMENTS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
10,878
15,712
Negative goodwill
11
(1,888,784)
(2,260,348)
Net goodwill
(1,877,906)
(2,244,636)
Other intangible assets
11
-
0
11,699
Total intangible assets
(1,877,906)
(2,232,937)
Tangible assets
12
6,770,583
7,481,529
4,892,677
5,248,592
Current assets
Stocks
15
5,086,718
4,241,592
Debtors
16
5,332,074
3,692,832
Cash at bank and in hand
1,094,961
1,373,942
11,513,753
9,308,366
Creditors: amounts falling due within one year
17
(6,302,383)
(5,509,671)
Net current assets
5,211,370
3,798,695
Total assets less current liabilities
10,104,047
9,047,287
Creditors: amounts falling due after more than one year
18
(9,966,784)
(7,082,514)
Net assets
137,263
1,964,773
Capital and reserves
Called up share capital
22
10
10
Other reserves
23
845,113
876,113
Profit and loss reserves
23
(707,860)
1,088,650
Total equity
137,263
1,964,773

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 7 October 2024 and are signed on its behalf by:
07 October 2024
D R Nixon
Director
Company registration number 11695462 (England and Wales)
WALKERS INVESTMENTS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
2,000,000
2,000,000
Current assets
Debtors
16
10
10
Net current assets
10
10
Total assets less current liabilities
2,000,010
2,000,010
Creditors: amounts falling due after more than one year
18
(1,604,903)
(1,535,792)
Net assets
395,107
464,218
Capital and reserves
Called up share capital
22
10
10
Other reserves
23
395,097
464,208
Total equity
395,107
464,218

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £69,111 (2022 - £66,135 loss).

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

The financial statements were approved by the board of directors and authorised for issue on 7 October 2024 and are signed on its behalf by:
07 October 2024
D R Nixon
Director
Company registration number 11695462 (England and Wales)
WALKERS INVESTMENTS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Other reserves
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
10
530,343
3,866,464
4,396,817
Period ended 31 December 2022:
Loss and total comprehensive income
-
-
(2,843,949)
(2,843,949)
Transfers
-
(66,135)
66,135
-
Other movements
-
411,905
-
411,905
Balance at 31 December 2022
10
876,113
1,088,650
1,964,773
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
(1,865,621)
(1,865,621)
Transfers
-
(69,111)
69,111
-
Other movements
-
38,111
-
38,111
Balance at 31 December 2023
10
845,113
(707,860)
137,263
WALKERS INVESTMENTS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Other reserves
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
10
530,343
-
0
530,353
Period ended 31 December 2022:
Loss and total comprehensive income for the period
-
-
(66,135)
(66,135)
Transfers
-
(66,135)
66,135
-
Balance at 31 December 2022
10
464,208
-
0
464,218
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
(69,111)
(69,111)
Transfers
-
(69,111)
69,111
-
Balance at 31 December 2023
10
395,097
-
0
395,107
WALKERS INVESTMENTS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
29
(2,516,040)
(558,792)
Interest paid
(108,356)
(98,514)
Income taxes refunded
228,317
-
0
Net cash outflow from operating activities
(2,396,079)
(657,306)
Investing activities
Purchase of intangible assets
-
(19,338)
Purchase of tangible fixed assets
(728,208)
(421,665)
Proceeds from disposal of tangible fixed assets
1,250
4,912
Interest received
298
-
0
Net cash used in investing activities
(726,660)
(436,091)
Financing activities
Proceeds from borrowings
8,016,456
2,360,000
Repayment of borrowings
(4,410,567)
(135,000)
Payment of finance leases obligations
(762,131)
(792,058)
Net cash generated from financing activities
2,843,758
1,432,942
Net (decrease)/increase in cash and cash equivalents
(278,981)
339,545
Cash and cash equivalents at beginning of year
1,373,942
1,034,397
Cash and cash equivalents at end of year
1,094,961
1,373,942
WALKERS INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Walkers Investments Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Walkers House, Brickfield Road, Birmingham, B25 8HE.

 

The group consists of Walkers Investments 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. 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
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

WALKERS INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Walkers Investments Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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.

1.4
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 based on the continued support of the ultimate shareholder and related parties.

 

At the year end date other borrowings and other creditors includes £10,221,194 (2022: £5,879,738) owed to a family member of the ultimate shareholder and other companies under common control. Additionally, the group has further funding facilities available for draw-down as required, up to £8,000,000. This facility is repayable by 30 April 2025 or on an exit event, evidencing the continued financial support in place.

 

Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
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.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

WALKERS INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 4-10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Intangible fixed assets other than goodwill

Intangible assets are initially recognised at cost. After recognition. under the cost model, intangible assets are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Development expenditure is capitalised within intangible fixed assets where it can be identified with a specific product or project, it can be demonstrated that the asset will generate probable future economic benefits and that its costs can be reliably measured. The capitalised development expenditure is subsequently amortised on a straight line basis over the anticipated life of the benefits arising from the completed product or project.

 

Research and development expenditure is written off as incurred, except that development expenditure incurred on an individual project or product is capitalised as an intangible asset when the company can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or resale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the asset and the ability to measure reliably the expenditure not recognised during development. Development expenditure previously recognised as an expense are not recognised as an asset in a subsequent period.

 

If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase.

 

Following initial recognition of the development expenditure as an asset, the cost model is applied requiring the assets to be carried at cost less any accumulated amortisation and accumulated impairment losses. It is amortised evenly over the period of expected future benefit. The assets are reviewed annually for impairment if the above factors indicate that the carrying value may be impaired.

Amortisation 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:

Development costs
33% p.a. straight line basis

Amortisation of the asset begins when the development is complete and the asset is available for use.

 

Amortisation is included in 'administrative expenses' in the profit and loss account. Where factors, such as technological advancement or changes in market price, indicate that residual value or useful life has changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances.

1.9
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.

WALKERS INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

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:

Plant and equipment
10% - 25% p.a. straight line basis
Computers
33% p.a. straight line basis
Motor vehicles
25% p.a. reducing balance basis

Assets in the course of construction are not depreciated.

 

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.

1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities 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.

1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

WALKERS INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.12
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.

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.

1.13
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.

1.14
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.

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.

WALKERS INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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.

Derecognition of financial liabilities

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

1.15
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.

1.16
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.

WALKERS INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.17
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.

1.18
Retirement benefits

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

1.19
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

1.20
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in 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.

WALKERS INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Impairment of tangible fixed assets

The directors assess the impairment of tangible fixed assets subject to deprecation or whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

 

Factors considered important that could trigger an impairment review include the following:

• Significant under-performance relative to historical or projected future operating results;

• Significant changes in the manner of the use of the acquired assets or the strategy for the overall business;

• Significant negative industry or economic trends.

Depreciation and residual values

The directors have reviewed the asset lives and associated residual values of all fixed asset classes, and have concluded that asset lives and residual values are appropriate.

 

The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projects disposal values.

 

Depreciation charged in the year totalled £1,438,470 (2022: £1,420,171). Refer to note 12 for the carrying value of tangible fixed assets impacted by this key accounting estimate.

Carrying value of stocks

The directors review the market value of and demand for its stocks on a periodic basis to ensure stock is recorded in the financial statements at the lower of cost and net realisable value. Any provision for impairment is recorded against the carrying value of stocks. The directors use their knowledge of market conditions, historical experiences and estimates of future events to assess future demand for the company’s products and achievable selling prices. The stock provision at the year end is £800,529 (2022: £1,044,070).

 

Refer to note 15 to see the carrying value of stock impacted by this accounting estimate.

Trade and other debtors are recognised to the extent that they are judged recoverable. The directors reviews are performed to estimate the level of reserves required for irrecoverable debt. Provisions are made specifically against invoices where recoverability is uncertain.

 

The directors make allowance for doubtful debts based on an assessment of the recoverability of debtors. Allowances are applied to debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. The directors specifically analyse historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the provision for doubtful debts. Where the expectation is different from the original estimate, such difference will impact the carrying value of debtors and the charge in the profit and loss account.

 

The bad debt provision in place at year end is £150,165 (2022: £154,103). Refer to note 16 to see the value of trade debtors impacted by this accounting estimate.

WALKERS INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
25,025,214
19,121,118
Rest of Europe
151,212
229,106
Australasia
470,414
470,414
North and South America
1,617,828
1,962,342
Rest of World
526,889
864,265
27,791,557
22,647,245
2023
2022
£
£
Other revenue
Interest income
298
-
4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses/(gains)
37,806
(7,165)
Depreciation of owned tangible fixed assets
854,550
836,250
Depreciation of tangible fixed assets held under finance leases
583,920
583,921
(Profit)/loss on disposal of tangible fixed assets
(566)
1,089
Amortisation of intangible assets
16,533
144,016
Release of negative goodwill
(371,564)
(371,564)
Operating lease charges
794,940
675,506

 

5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,000
5,000
Audit of the financial statements of the company's subsidiaries
26,000
11,000
31,000
16,000
WALKERS INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Production
156
136
-
-
Administration
44
36
-
-
Total
200
172
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,925,227
5,199,444
-
0
-
0
Social security costs
594,386
518,962
-
-
Pension costs
129,757
124,481
-
0
-
0
6,649,370
5,842,887
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
146,318
135,448
Company pension contributions to defined contribution schemes
15,984
15,983
162,302
151,431

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022: 1).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
298
-
WALKERS INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
-
15
Interest on finance leases and hire purchase contracts
108,356
98,499
Finance costs for financial instruments measured at fair value through profit or loss
69,111
66,135
Total finance costs
177,467
164,649
10
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
-
0
(517,384)
Changes in tax rates
-
0
(28,731)
Adjustment in respect of prior periods
-
0
67,270
Total deferred tax
-
0
(478,845)

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

2023
2022
£
£
Loss before taxation
(1,865,621)
(3,322,794)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(466,405)
(631,331)
Tax effect of expenses that are not deductible in determining taxable profit
21,735
9,738
Tax effect of income not taxable in determining taxable profit
(7,091)
-
0
Unutilised tax losses carried forward
541,022
285,678
Effect of change in corporation tax rate
-
(28,731)
Permanent capital allowances in excess of depreciation
(367)
(16,447)
Depreciation on assets not qualifying for tax allowances
2,788
1,143
Amortisation on assets not qualifying for tax allowances
(91,682)
(68,765)
Other permanent differences
-
0
(97,400)
Deferred tax adjustments in respect of prior years
-
0
67,270
Taxation charge/(credit)
-
(478,845)
WALKERS INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 26 -

In October 2022, the government announced an increase in the corporation tax main rate from 19% to 25% for companies with profit over £250,000. There is a small company rate of 19% for taxable profits under £50,000 and marginal relief available for profits falling between £50,000 - £250,000 with effect from 1 April 2023.

 

Due to utilised tax losses across the group, there is no requirement to recognise a provision for deferred tax arising on accelerated capital allowances claimed to date. At the year end, no deferred tax asset has been recognised due to the present uncertainty of utilisation. This will be reassessed on an annual basis and once profits have been reported and can be accurately forecast.

 

At the balance sheet date the group has tax losses carried forward of £6,382,620 (2022: £4,194,288). These have been partially offset against deferred tax liabilities arising on accelerated capital allowances claims. The group has not recognised a deferred tax asset in respect of tax losses of £2,815,392 (2022: £651,306) as it is not probable that they will be recovered against the reversal of deferred tax liabilities or future taxable profits.

11
Intangible fixed assets
Group
Goodwill
Negative goodwill
Development costs
Total
£
£
£
£
Cost
At 1 January 2023 and 31 December 2023
19,338
(8,612,644)
421,170
(8,172,136)
Amortisation and impairment
At 1 January 2023
3,626
(6,352,296)
409,471
(5,939,199)
Amortisation charged for the year
4,834
(371,564)
11,699
(355,031)
At 31 December 2023
8,460
(6,723,860)
421,170
(6,294,230)
Carrying amount
At 31 December 2023
10,878
(1,888,784)
-
0
(1,877,906)
At 31 December 2022
15,712
(2,260,348)
11,699
(2,232,937)
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
WALKERS INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
12
Tangible fixed assets
Group
Assets under construction
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
129,128
18,263,051
393,821
112,479
18,898,479
Additions
1,520
640,327
77,861
8,500
728,208
Disposals
-
0
-
0
-
0
(4,104)
(4,104)
Transfers
(114,271)
106,335
7,936
-
0
-
0
At 31 December 2023
16,377
19,009,713
479,618
116,875
19,622,583
Depreciation and impairment
At 1 January 2023
-
0
11,087,515
227,664
101,771
11,416,950
Depreciation charged in the year
-
0
1,358,314
69,600
10,556
1,438,470
Eliminated in respect of disposals
-
0
-
0
-
0
(3,420)
(3,420)
At 31 December 2023
-
0
12,445,829
297,264
108,907
12,852,000
Carrying amount
At 31 December 2023
16,377
6,563,884
182,354
7,968
6,770,583
At 31 December 2022
129,128
7,175,536
166,157
10,708
7,481,529
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
2,704,790
3,288,710
-
0
-
0

Assets under construction relate to new machinery in the process of being installed. These will be transferred predominately to plant and machinery and depreciated from the date the assets come into full operational use.

13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
2,000,000
2,000,000
WALKERS INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
2,000,000
Carrying amount
At 31 December 2023
2,000,000
At 31 December 2022
2,000,000
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Walkers Chocolates Limited
1
Wholesale and manufacture of confectionery
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Walkers House, Coventry Road, Hays Mill, Birmingham, B25 8HE
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
2,383,823
1,083,848
-
-
Work in progress
161,116
878,470
-
-
Finished goods and goods for resale
2,541,779
2,279,274
-
0
-
0
5,086,718
4,241,592
-
-
WALKERS INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,641,092
3,083,183
-
0
-
0
Corporation tax recoverable
-
0
228,317
-
0
-
0
Other debtors
141,081
22,887
10
10
Prepayments and accrued income
549,901
358,445
-
0
-
0
5,332,074
3,692,832
10
10
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
20
821,733
762,134
-
0
-
0
Trade creditors
3,278,611
3,257,557
-
0
-
0
Other taxation and social security
517,309
473,566
-
-
Other creditors
1,293,732
716,306
-
0
-
0
Accruals and deferred income
390,998
300,108
-
0
-
0
6,302,383
5,509,671
-
0
-
0

Net obligations under finance leases and hire purchase contracts are secured over the asset to which they relate.

18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
20
916,897
1,738,627
-
0
-
0
Other borrowings
19
7,444,984
3,808,095
-
0
-
0
Other creditors
1,604,903
1,535,792
1,604,903
1,535,792
9,966,784
7,082,514
1,604,903
1,535,792

Net obligations under finance leases and hire purchase contracts are secured over the asset to which they relate.

 

Other borrowings are secured.

 

Other creditors relates to a loan from a related company, payable on the future sale of the group. The loan does not have a fixed repayment date, is unsecured and is non-interest bearing.

 

For the purposes of discounting the loan in accordance with FRS102 to net present value, a repayment date of 31 December 2028 has been assumed and an interest rate of 4.5% per annum (2022: 4.5%) has been applied.

WALKERS INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
19
Loans
Group
Company
2023
2022
2023
2022
£
£
£
£
Other loans
7,444,984
3,808,095
-
0
-
0
Payable after one year
7,444,984
3,808,095
-
0
-
0

Other borrowings of £7,444,984 (2022: £3,808,095) are secured over the group's debtors and stock. This represents the discounted liability as at the year end. The absolute liability payable on the earlier of 30 April 2025 or an exit event is £7,895,000 (2022: £4,220,000).

 

The loan has been discounted using an interest rate of 4.5% being the rate charged for related party loans within companies under common control.

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
821,733
762,134
-
0
-
0
In two to five years
916,897
1,738,627
-
0
-
0
1,738,630
2,500,761
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
129,757
124,481

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

 

As at the year-end, contributions due to the schemes in respect of the current reporting year were £26,629 (2022: £24,846).

WALKERS INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
1,000
1,000
10
10

Other debtors includes £10 (2022: £10) unpaid share capital.

23
Reserves

Profit and loss account

 

The profit and loss account includes all current and prior periods' retained profits and losses.

 

Other reserves

 

Other reserves represent the effect of discounting a non market rate loan and will be released over the term of the loan.

24
Financial commitments, guarantees and contingent liabilities

Walkers Chocolates Limited is committed to raw material purchases with its suppliers amounting to £6,489,757 (2022: £1,887,188).

25
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
2023
2022
2023
2022
£
£
£
£
Within one year
-
3,000
-
-
-
3,000
-
-
26
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
-
15,468
-
-
WALKERS INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
27
Related party transactions

Group

The group has taken advantage of the exemption available in accordance with FRS 102 section 33 'Related party disclosures' not to disclose transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.

 

During the year the group has recognised rental and insurance charges of £309,624 (2022: £323,063) from Euro Property Investments Limited, a related company due to common directors and control. At the year end, an amount of £352,924 (2022: £191,774) was owed to Euro Property Investments Limited, this amount is included within other creditors.

 

During the year the group has recognised rental and insurance charges of £465,196 (2022: £350,000) from Robert Walker (Food Merchants) Limited, a related company due to common directors and control. At the year end, an amount of £453,236 (2022: £140,000) was owed to Robert Walker (Food Merchants) Limited, this amount is included within other creditors.

 

During the year the group has recognised sales of £3,125 (2022: £5,526) to Euro Packaging UK Limited, purchases of £281,612 (2022: £5,280) from Euro Packaging UK Limited and recharges of £50,399 (2022: £41,556) from Euro Packaging UK Limited, a company under common control. At the year end, an amount of £340,601 (2022: £204,077) was owed to Euro Packaging UK Limited, this amount is included within other creditors.

 

During the year the group has recognised purchases of £123,393 (2022: £48,535) from Coppice Alupack Limited, a company under common control. At the year end, an amount of £24,546 (2022: £Nil) was owed to Coppice Alupack Limited, this amount is included within other creditors.

 

During the year the group received loan advances of £3,675,000 (2022: £2,360,000) and made repayments of £Nil (2022: £135,000) to a family member of one of the directors and the ultimate shareholder. At the year end, the loan amounted to £7,744,984 (2022: £3,808,095), as included within other borrowings. The absolute liability payable by the 2025 repayment date or on an exit event is £7,895,000 (2022: £4,220,000). The loan does not have a fixed repayment date, is secured and is non-interest bearing.

 

Company

The company has taken advantage of the exemption available in accordance with FRS 102 section 33 'Related party disclosures' not to disclose transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.

 

Other creditors, amounts falling due after more than one year includes a discounted loan balance of £1,604,903 (2022: £1,535,792) which is owed to Robert Walker (Food Merchants) Limited, a related company due to common directors and shareholders. This discounted liability has an absolute balance payable of £2,000,000 (2022: £2,000,000) on a future sale of the group. The balance is unsecured, non-interest bearing and repayable in full at an unknown future date.

28
Controlling party

The ultimate controlling party is deemed to be A M Alimahomed by virtue of his majority shareholding.

WALKERS INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
29
Cash absorbed by group operations
2023
2022
£
£
Loss for the year after tax
(1,865,621)
(2,843,949)
Adjustments for:
Taxation charged/(credited)
-
0
(478,845)
Finance costs
177,467
164,649
Investment income
(298)
-
0
(Gain)/loss on disposal of tangible fixed assets
(566)
1,089
Amortisation and impairment of intangible assets
(355,031)
(227,548)
Depreciation and impairment of tangible fixed assets
1,438,470
1,420,171
Movements in working capital:
Increase in stocks
(845,126)
(907,535)
(Increase)/decrease in debtors
(1,867,559)
1,819,281
Increase in creditors
802,224
493,895
Cash absorbed by operations
(2,516,040)
(558,792)
30
Analysis of changes in net debt - group
1 January 2023
Cash flows
Market value movements
31 December 2023
£
£
£
£
Cash at bank and in hand
1,373,942
(278,981)
-
1,094,961
Borrowings excluding overdrafts
(3,808,095)
(3,567,778)
(69,111)
(7,444,984)
Obligations under finance leases
(2,500,761)
762,131
-
(1,738,630)
(4,934,914)
(3,084,628)
(69,111)
(8,088,653)
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