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REGISTERED NUMBER: 01001233 (England and Wales)


















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2024

FOR

ENTWISTLE & JOYNT LIMITED

ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)






CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 31 January 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 10

Statement of Financial Position 11

Statement of Changes in Equity 12

Statement of Cash Flows 13

Notes to the Statement of Cash Flows 14

Notes to the Financial Statements 15


ENTWISTLE & JOYNT LIMITED

COMPANY INFORMATION
for the Year Ended 31 January 2024







DIRECTORS: Mr I P Entwistle
Mr D J Entwistle
Mrs E A Bilton





REGISTERED OFFICE: 62 Darlington Street East
Wigan
Lancashire
WN1 3AT





REGISTERED NUMBER: 01001233 (England and Wales)





AUDITORS: Fairhurst
Statutory Auditor
Chartered Accountants
Douglas Bank House
Wigan Lane
Wigan
Lancashire
WN1 2TB

ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)

STRATEGIC REPORT
for the Year Ended 31 January 2024

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

REVIEW OF BUSINESS
During the year 2023-2024 the company had an increase in turnover from £9.3m in 2022-23 to £12m in 2023-24. There was also an increase in margin to 14.1%. However, due to issues with pricing in the marketplace being unstable which subsequently incurred additional marketing costs online to ensure visibility to compete, the company incurred a net loss after tax of £171,063 which was a significant improvement on the previous year's performance and a large step forward towards the business' return to profitability.

Continual review of the product portfolio, maximising stock turnover and strong relationships with customers and suppliers ensured the impact of the net loss on cashflow was very well managed.

The company finished the year with a negative cash balance of £122,763. This was solely due to the supplier rebates not being provided by the close of the financial year. This would have ensured a positive cash position and subsequently did so within the following month.

The company has continued to invest in the online retail platform in order to maintain and grow the new customer base in a very competitive marketplace. The wholesale arm of the business has been invested in, to not only maintain well established customer relationships but to also develop and grow new targeted customer-based projects and to enhance our bespoke offering, by adding outbound opportunities to our previously inbound only team. This area continues to be the key area of the business with a continued strong relationship with all customers. In 2023-24 the company remains a preferred supplier to many of the existing buying groups who still recognise the company's ability to offer a wide range of different products/brands that can be delivered when needed to multiple retail locations throughout the UK.

The company has invested in our H&S systems both by training up internal staff members with considerable responsibility but also by partnering with a local third-party consultancy that has ensured stability, safety and long-term building investments have been bedded in and are cyclical in their reviewing periods.

Other key areas of focus within the business continue to be increased performance management and training for members of staff, specifically for our management team who have taken a thorough and dedicated approach to continued quality assurance, working with less staff in a far more productive way by reviewing and improving their teams' processes and procedures to drive efficiencies. Our IT and Digital infrastructure continue to strengthen and further develop our online offering and remains adaptable and flexible to the quick turnaround of projects and website needs and updates. In line with the previous year's strategy the business has continued to make improvements in many areas such as procurement, stock control and planning, and digital marketing strategies.

The business has always placed a high emphasis on its excellent customer service, and this has been acknowledged through multiple well-known review sites where we continue to gather very positive and engaging reviews month on month.

PRINCIPAL RISKS AND UNCERTAINTIES
In terms of financial risk management, the company considers that its biggest risk is disruption to stock supply. In order to mitigate this, the company has ensured alternative stock availability across multiple manufacturers and maintains strong relationships with the key suppliers and pays to terms. Most of the company's revenue is invoiced in sterling and all of its operations and costs arise within the UK. The company does not enter into currency hedging contracts. Furthermore, the company ensures its liquidity is maintained by entering into long term or short-term financial instruments as necessary to support operational and other funding requirements.

CURRENT CLIMATE
Given the challenges faced by the wider UK economy in terms of changes in interest rates and the pressures this puts on the UK housing and building industries, the company has still been able to grow its market share by developing both processes and practices over a two year period to work with customers closely to ensure stability and when required a flexible approach that meets our customers' needs.


ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)

STRATEGIC REPORT
for the Year Ended 31 January 2024

FUTURE DEVELOPMENTS
The company continues to invest in the long-term future and has working capital facilities from a supportive bank in order to expand trading.

ON BEHALF OF THE BOARD:





Mrs E A Bilton - Director


18 October 2024

ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)

REPORT OF THE DIRECTORS
for the Year Ended 31 January 2024

The directors present their report with the financial statements of the company for the year ended 31 January 2024.

PRINCIPAL ACTIVITIES
The principal activities of the company in the year under review were those of machinery and tool distributors.

DIVIDENDS
The total distribution of dividends for the year ended 31 January 2024 will be £ 180,898 .

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 February 2023 to the date of this report.

Mr I P Entwistle
Mr D J Entwistle
Mrs E A Bilton

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial instruments and future developments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)

REPORT OF THE DIRECTORS
for the Year Ended 31 January 2024


AUDITORS
The auditors, Fairhurst, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr I P Entwistle - Director


18 October 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ENTWISTLE & JOYNT LIMITED

Opinion
We have audited the financial statements of Entwistle & Joynt Limited (the 'company') for the year ended 31 January 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
_
In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 January 2024 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ENTWISTLE & JOYNT LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ENTWISTLE & JOYNT LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Extent to which the audit was considered capable of detecting irregularities including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we have identified included Companies Act 2006, Tax legislation, Price Regulation Legislation, data protection, employment, environmental and health & safety legislation.
- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing minutes of meetings and inspecting legal correspondence.

In assessing the susceptibility of the company's financial statements to material misstatement, including obtaining and understanding of how fraud might occur;
- We gained an understanding of the controls that management have in place to prevent and detect fraud. We enquired of management about any instances of fraud that had taken place during the year.

To address the risk of fraud through management bias and override of controls;
- We performed analytical procedures to identify any unusual or unexpected relationships;
- We tested journal entries to identify unusual transactions; and
- We assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

Due 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, 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 fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ENTWISTLE & JOYNT LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.




Jane Dennis BA (Hons) FCA (Senior Statutory Auditor)
for and on behalf of Fairhurst
Statutory Auditor
Chartered Accountants
Douglas Bank House
Wigan Lane
Wigan
Lancashire
WN1 2TB

18 October 2024

ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)

STATEMENT OF COMPREHENSIVE
INCOME
for the Year Ended 31 January 2024

2024 2023
Notes £    £   

TURNOVER 4 11,968,744 9,274,409

Cost of sales 10,285,579 8,225,536
GROSS PROFIT 1,683,165 1,048,873

Administrative expenses 1,854,816 1,738,050
OPERATING LOSS (171,651 ) (689,177 )

Interest receivable and similar income 588 340
LOSS BEFORE TAXATION 6 (171,063 ) (688,837 )

Tax on loss 7 - (8,025 )
LOSS FOR THE FINANCIAL YEAR (171,063 ) (680,812 )

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(171,063

)

(680,812

)

ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)

STATEMENT OF FINANCIAL POSITION
31 January 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 481,613 504,707

CURRENT ASSETS
Stocks 10 1,437,854 1,624,181
Debtors 11 1,681,707 1,323,315
Cash at bank and in hand 285,049 472,885
3,404,610 3,420,381
CREDITORS
Amounts falling due within one year 12 1,618,454 1,305,358
NET CURRENT ASSETS 1,786,156 2,115,023
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,267,769

2,619,730

CAPITAL AND RESERVES
Called up share capital 16 10,000 10,000
Share premium 17 160,003 160,003
Capital redemption reserve 17 1 1
Retained earnings 17 2,097,765 2,449,726
SHAREHOLDERS' FUNDS 2,267,769 2,619,730

The financial statements were approved by the Board of Directors and authorised for issue on 18 October 2024 and were signed on its behalf by:





Mr I P Entwistle - Director


ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)

STATEMENT OF CHANGES IN EQUITY
for the Year Ended 31 January 2024

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1 February 2022 10,000 3,353,436 160,003 1 3,523,440

Changes in equity
Total comprehensive income - (680,812 ) - - (680,812 )
Dividends - (222,898 ) - - (222,898 )
Balance at 31 January 2023 10,000 2,449,726 160,003 1 2,619,730

Changes in equity
Total comprehensive income - (171,063 ) - - (171,063 )
Dividends - (180,898 ) - - (180,898 )
Balance at 31 January 2024 10,000 2,097,765 160,003 1 2,267,769

ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)

STATEMENT OF CASH FLOWS
for the Year Ended 31 January 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (298,631 ) 159,030
Tax paid 15,805 (370 )
Net cash from operating activities (282,826 ) 158,660

Cash flows from investing activities
Purchase of tangible fixed assets (6,701 ) (31,164 )
Interest received 588 340
Net cash from investing activities (6,113 ) (30,824 )

Cash flows from financing activities
Amount introduced by directors 114,270 128,271
Amount withdrawn by directors (114,496 ) (122,994 )
Equity dividends paid (180,898 ) (222,898 )
Net cash from financing activities (181,124 ) (217,621 )

Decrease in cash and cash equivalents (470,063 ) (89,785 )
Cash and cash equivalents at beginning of
year

2

347,300

437,085

Cash and cash equivalents at end of year 2 (122,763 ) 347,300

ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)

NOTES TO THE STATEMENT OF CASH FLOWS
for the Year Ended 31 January 2024

1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
Loss before taxation (171,063 ) (688,837 )
Depreciation charges 29,796 31,807
Finance income (588 ) (340 )
(141,855 ) (657,370 )
Decrease in stocks 186,327 842,166
Increase in trade and other debtors (374,149 ) (42,416 )
Increase in trade and other creditors 31,046 16,650
Cash generated from operations (298,631 ) 159,030

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 January 2024
31/1/24 1/2/23
£    £   
Cash and cash equivalents 285,049 472,885
Bank overdrafts (407,812 ) (125,585 )
(122,763 ) 347,300
Year ended 31 January 2023
31/1/23 1/2/22
£    £   
Cash and cash equivalents 472,885 437,085
Bank overdrafts (125,585 ) -
347,300 437,085


3. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1/2/23 Cash flow At 31/1/24
£    £    £   
Net cash
Cash at bank and in hand 472,885 (187,836 ) 285,049
Bank overdrafts (125,585 ) (282,227 ) (407,812 )
347,300 (470,063 ) (122,763 )
Total 347,300 (470,063 ) (122,763 )

ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)

NOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 31 January 2024

1. STATUTORY INFORMATION

Entwistle & Joynt Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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


2. ACCOUNTING POLICIES

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

Going concern
The directors have prepared a cashflow forecast which demonstrates that the company should be able to work within its agreed banking facilities, whilst being able to continue to meet its liabilities as they fall due for payment during the 12 month period following approval of the accounts. Therefore the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions
This 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::

- Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues' - carrying
amounts, interest income/expense and net gains/losses for each category of financial instrument, loan
defaults;
- Section 33 'Related Party Disclosures' - Compensation for key management personnel.

Turnover
Turnover represents amounts receivable for the sale of goods as machinery and tool distributors, net of VAT and trade discounts.

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.

ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 January 2024

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Freehold property - 2% per annum straight line
Long leasehold - 2% per annum straight line
Plant and machinery - 25% per annum straight line
Fixtures and fittings - 10% per annum straight line

Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

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.

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.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. The cost of stock is measured using the weighted average cost formula.

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

ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 January 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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
The company does not have any financial assets which are not classified as basic financial instruments.

Impairment of financial assets
Financial assets 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 company 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.

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 company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including creditors and bank loans 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 receipts 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.


ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 January 2024

2. ACCOUNTING POLICIES - continued
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
The company does not have any financial liabilities which are not classified as basic financial instruments.


Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign exchange
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Development expenditure
Identifiable development expenditure is written off against profits in the year in which it is incurred, even if the technical, commercial and financial feasibility can be demonstrated.

ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 January 2024

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company’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.

Useful economic life of tangible fixed assets
The useful economic life of tangible fixed assets is judged at the point of purchase and is then reassessed at each reporting date. A useful economic life of 50 years is applied to land and buildings, 4 years for plant and machinery and motor vehicles, and 10 years for fixtures, fittings and equipment.

Classification of finance and operating leases
At the inception of each lease, management undertake an assessment of the terms of the lease including the payments to be made over the life of the lease, the fair value of the asset subject to the lease, the length of the lease and whether the terms of the lease transfer substantially all of the risks and rewards of ownership.

Based on this assessment, management will determine whether the lease should be classified as a finance or operating lease.

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.

Provision for irrecoverable trade debtors
At each balance sheet date, management undertake a review of the outstanding trade debtor balances and estimate the balance that should either be impaired or provided against.

This calculation is based on the financial position of the customers, the historical speed of payment and any ongoing discussions.

Provision for slow moving and obsolete stock
At each balance sheet date, management undertake an assessment of the value at which stock items are held within the accounts. The provision is calculated on an individual stock line basis, with due regards to previous and expected future stock movements. The provision is reviewed and updated at each reporting date.

4. TURNOVER

The turnover and loss before taxation are attributable to the principal activities of the company.

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 11,880,450 9,210,933
Overseas sales 88,294 63,476
11,968,744 9,274,409

ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 January 2024

5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 738,652 678,325
Social security costs 60,056 50,994
Other pension costs 14,091 13,441
812,799 742,760

The average number of employees during the year was as follows:
2024 2023

Directors 3 3
Management and office administration 4 4
Sales and distribution 25 24
32 31

2024 2023
£    £   
Directors' remuneration 40,438 37,654

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

Money purchase schemes 3 3

6. LOSS BEFORE TAXATION

The loss is stated after charging/(crediting):

2024 2023
£    £   
Depreciation - owned assets 29,795 31,807
Auditors' remuneration 7,850 7,650
Foreign exchange differences (496 ) (7,902 )
Operating lease charges 38,979 86,274

7. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
2024 2023
£    £   
Current tax:
Adjustment re prior year - 98

Deferred tax:
Origination and reversal of
timing differences - (8,123 )
Tax on loss - (8,025 )

UK corporation tax has been charged at 25% (2023 - 19%).

ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 January 2024

7. TAXATION - continued

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Loss before tax (171,063 ) (688,837 )
Loss multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

(42,766

)

(130,879

)

Effects of:
Expenses not deductible for tax purposes 13 444
Capital allowances in excess of depreciation - (9,679 )
Depreciation in excess of capital allowances 5,774 -
Losses carried forward 36,979 132,089
Total tax credit - (8,025 )

8. DIVIDENDS
2024 2023
£    £   
Final 180,898 222,898

9. TANGIBLE FIXED ASSETS
Fixtures
Freehold Long Plant and and
property leasehold machinery fittings Totals
£    £    £    £    £   
COST
At 1 February 2023 542,921 264,474 112,373 138,485 1,058,253
Additions - - 2,038 4,663 6,701
At 31 January 2024 542,921 264,474 114,411 143,148 1,064,954
DEPRECIATION
At 1 February 2023 238,479 115,912 103,994 95,161 553,546
Charge for year 10,852 5,288 4,435 9,220 29,795
At 31 January 2024 249,331 121,200 108,429 104,381 583,341
NET BOOK VALUE
At 31 January 2024 293,590 143,274 5,982 38,767 481,613
At 31 January 2023 304,442 148,562 8,379 43,324 504,707

10. STOCKS
2024 2023
£    £   
Goods for resale 1,437,854 1,624,181

ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 January 2024

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,083,779 861,304
Amounts owed by group undertakings 168,675 168,675
Directors' loan accounts 48 -
Tax 41 15,846
Prepayments and accrued income 429,164 277,490
1,681,707 1,323,315

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 13) 407,812 125,585
Trade creditors 1,004,391 967,051
Social security and other taxes 11,867 11,695
VAT 129,254 81,181
Other creditors 11,370 11,897
Directors' loan accounts 20,029 20,207
Accruals and deferred income 33,731 87,742
1,618,454 1,305,358

13. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 407,812 125,585

Total bank borrowings were secured by a first legal charge over the property at 62 Darlington Street East, Wigan, a debenture incorporating a fixed and floating charge over the company's current and future assets and a cross company guarantee provided by Entwistle & Joynt Holdings Limited.

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 30,272 31,067
Between one and five years 61,755 47,351
92,027 78,418

15. SECURED DEBTS

Total bank borrowings were secured by a first legal charge over the property at 62 Darlington Street East, Wigan, a debenture incorporating a fixed and floating charge over the company's current and future assets and a cross company guarantee provided by Entwistle & Joynt Holdings Limited.

ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 January 2024

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
20,000 Ordinary 50p 10,000 10,000

17. RESERVES
Capital
Retained Share redemption
earnings premium reserve Totals
£    £    £    £   

At 1 February 2023 2,449,726 160,003 1 2,609,730
Deficit for the year (171,063 ) - - (171,063 )
Dividends (180,898 ) - - (180,898 )
At 31 January 2024 2,097,765 160,003 1 2,257,769

18. PENSION COMMITMENTS

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

19. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 January 2024 and 31 January 2023:

2024 2023
£    £   
Mr D J Entwistle
Balance outstanding at start of year - 2,221
Amounts advanced 41,048 -
Amounts repaid (41,000 ) (2,221 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 48 -

20. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

21. POST BALANCE SHEET EVENTS

Dividends of £99,932 have been paid to the parent company between the balance sheet date and the signing of the auditor's report.

ENTWISTLE & JOYNT LIMITED (REGISTERED NUMBER: 01001233)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 January 2024

22. ULTIMATE CONTROLLING PARTY

Entwistle & Joynt Holdings Limited, a company incorporated in England and Wales, is the immediate and ultimate parent company of Entwistle & Joynt Limited. The registered office of Entwistle & Joynt Holding Limited is 62 Darlington Street East, Wigan, WN1 3AT.

The smallest and largest group into which the company is consolidated is that of Entwistle & Joynt Holdings Limited. Copies of the consolidated financial statements may be obtained from Companies House, Cardiff.