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Registered number: 05584217
J H Young Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 31 December 2023
Contents
Page
Strategic Report 1
Directors' Report 2
Independent Auditor's Report 3—5
Profit and Loss Account 6
Balance Sheet 7
Statement of Changes in Equity 8
Cash Flow Statement 9
Notes to the Cash Flow Statement 10
Notes to the Financial Statements 11—18
Page 1
Strategic Report
The directors present their strategic report for the year ended 31 December 2023.
Review of the Business
Fair review of the business
The year ended 31 December 2023 achieved the directors’ expectation in terms of turnover and profitability, based on the difficult trading conditions, with turnover decreasing by 12.8% over the year. Howeveve the three year cycle is an upward trend with turnover having increased by 34% from the 31 December 2020 year end.
The supply of materials has been challenging with both increased prices and availability being impacted. The price increases experience last year continued within thsi year, which resulted in a gross profit margin achieved of 20.05%. The directors have continued to monitor and direct the purchasing processes in order to manage and alleviate this issue. The company is a member of The National Merchant Buyers Society Limited (NMBS) as a result is able to purchase at the best possible prices through centralised deals negotiated with a large number of both independent and national suppliers.
The staff compliment has remained connstant but with the cost base increasing. The company offers of an attractive package and has managed to attract and retain good quality staff with a limited staff over ratio. This gives the bsuiness a stable base from which to operate.The directors have looked to promote from within and are exploring the training opportunities for all staff to upskill within the organisation.
The business has increased its balance sheet position to £3,501,534 during the year with cash balances increasing to £1,363,373 providing the liquidity for the ongoing development of the business.
The company has also invested in information technology within the last three years upgrading the systems constantly so that the internal controls and processes are as streamlined and as interactive as possible. This has enabled the business to become more efficient and more responsive to customers’ needs.
Principal risks and uncertainties
The availability of stocks and the supply chain remain a constant challenge.
The company offers credit to customers and have remained low due to a holistic approach being undertaken where all customer facing staff are made aware of the credit allocated to customers and are empowered to question non-payment.
Future Developments
The company will continue to invest in its information technology, asset procurement and staff, whilst continuing to manage its working capital requirements closely.
On behalf of the board
Mr Paul Nixon
Director
18/10/2024
Page 1
Page 2
Directors' Report
The directors present their report and the financial statements for the year ended 31 December 2023.
Principal Activity
The company's principal activity continues to be that of timber and builders merchants.
Directors
The directors who held office during the year were as follows:
Mr Paul Nixon
Mr John Levitt
Mr Stuart Levitt
Mr Christopher Levitt
Statement of Directors' Responsibilities
The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements the directors are required to:
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
The directors of the company who held office at the date of approval of this annual report confirm that:
  • so far as they are aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Independent Auditors
The auditors, Magee Gammon Corporate Limited, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
Mr Paul Nixon
Director
18/10/2024
Page 2
Page 3
Independent Auditor's Report
Opinion
We have audited the financial statements of J H Young Limited for the year ended 31 December 2023 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes of Equity, Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit/(loss) for the year then ended;
  • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
  • have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions Relating to Going Concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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 the audit:

  • the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

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Page 4
Matters on Which We Are Required to Report by Exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

  • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
  • the financial statements are not in agreement with the accounting records 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 Directors' responsibilities statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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:
Based on our understanding of the company, we have considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements including management override, and considered that the principal risk was related to the posting of inappropriate journal entries to improve the result before tax for the year.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.
Procedures performed by the audit team included:
  • Discussions with management regarding known or suspected instances of non compliance with laws and regulations;
  • Evaluation of controls designed to prevent and detect irregularities; and
  • Assessing journal entries as part of our planned audit approach.
There are inherent limitations in the audit procedures described above, and the further removed non compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all of our audits we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
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 Auditors' report.
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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 Auditors' 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.
Andrew John Childs FCA (Senior Statutory Auditor)
for and on behalf of Magee Gammon Corporate Limited , Statutory Auditor
18/10/2024
Magee Gammon Corporate Limited
Henwood House
Henwood
Ashford
Kent
TN24 8DH
Page 5
Page 6
Profit and Loss Account
2023 2022
Notes £ £
TURNOVER 3 14,720,515 16,884,451
Cost of sales (11,769,596 ) (13,328,926 )
GROSS PROFIT 2,950,919 3,555,525
Administrative expenses (2,240,372 ) (2,143,676 )
Other operating income 16,827 1,007
OPERATING PROFIT 5 727,374 1,412,856
Income from other fixed asset investments 17,402 -
Profit on disposal of fixed assets 10,458 37,460
Other interest receivable and similar income 10 39,569 5,684
Interest payable and similar charges 11 (23,026 ) (16,589 )
PROFIT BEFORE TAXATION 771,777 1,439,411
Tax on Profit 12 (177,518 ) (260,378 )
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR 594,259 1,179,033
The notes on pages 10 to 18 form part of these financial statements.
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Page 7
Balance Sheet
Registered number: 05584217
2023 2022
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 14 840,891 821,112
Investments 15 101,300 1,300
942,191 822,412
CURRENT ASSETS
Stocks 16 1,567,516 1,593,032
Debtors 17 1,734,200 1,960,400
Cash at bank and in hand 1,363,373 1,226,881
4,665,089 4,780,313
Creditors: Amounts Falling Due Within One Year 18 (1,618,059 ) (1,591,230 )
NET CURRENT ASSETS (LIABILITIES) 3,047,030 3,189,083
TOTAL ASSETS LESS CURRENT LIABILITIES 3,989,221 4,011,495
Creditors: Amounts Falling Due After More Than One Year 19 (291,584 ) (348,963 )
PROVISIONS FOR LIABILITIES
Deferred Taxation 20 (196,103 ) (190,257 )
NET ASSETS 3,501,534 3,472,275
CAPITAL AND RESERVES
Called up share capital 22 100 100
Profit and Loss Account 3,501,434 3,472,175
SHAREHOLDERS' FUNDS 3,501,534 3,472,275
On behalf of the board
Mr Paul Nixon
Director
Mr Christopher Levitt
Director
18/10/2024
The notes on pages 10 to 18 form part of these financial statements.
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Page 8
Statement of Changes in Equity
Share Capital Profit and Loss Account Total
£ £ £
As at 1 January 2022 100 2,858,142 2,858,242
Profit for the year and total comprehensive income - 1,179,033 1,179,033
Dividends paid - (565,000) (565,000)
As at 31 December 2022 and 1 January 2023 100 3,472,175 3,472,275
Profit for the year and total comprehensive income - 594,259 594,259
Dividends paid - (565,000) (565,000)
As at 31 December 2023 100 3,501,434 3,501,534
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Cash Flow Statement
2023 2022
Notes £ £
Cash flows from operating activities
Net cash generated from operations 1 1,264,665 868,556
Interest paid (23,026 ) (16,589 )
Tax paid (231,573 ) (194,838 )
Net cash generated from operating activities 1,010,066 657,129
Cash flows from investing activities
Purchase of tangible assets (256,830 ) (393,130 )
Proceeds from disposal of tangible assets 18,333 78,539
Purchase of other fixed asset investments (100,000 ) -
Grants received 10,000 1,007
Interest received 39,569 5,684
Dividends received 17,402 -
Net cash used in investing activities (271,526 ) (307,900 )
Cash flows from financing activities
Equity dividends paid (565,000 ) (565,000 )
Repayment of finance leases (37,048 ) 132,063
Net cash used in financing activities (602,048 ) (432,937 )
Increase/(decrease) in cash and cash equivalents 136,492 (83,708 )
Cash and cash equivalents at beginning of year 2 1,226,881 1,310,589
Cash and cash equivalents at end of year 2 1,363,373 1,226,881
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Notes to the Cash Flow Statement
1. Reconciliation of profit for the financial year to cash generated from operations
2023 2022
£ £
Profit for the financial year 594,259 1,179,033
Adjustments for:
Tax on profit 177,518 260,378
Interest expense 23,026 16,589
Interest income (39,569 ) (5,684 )
Income from investments (17,402) -
Depreciation of tangible assets 229,176 235,507
Profit on disposal of tangible assets (10,458) (37,460)
Grant income (10,000) (1,007)
Movements in working capital:
Decrease/(increase) in stocks 25,516 (67,091 )
Decrease/(increase) in trade and other debtors 226,200 (625,628 )
Increase/(decrease) in trade and other creditors 66,399 (86,081 )
Net cash generated from operations 1,264,665 868,556
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2023 2022
£ £
Cash at bank and in hand 1,363,373 1,226,881
3. Analysis of changes in net funds
As at 1 January 2023 Cash flows As at 31 December 2023
£ £ £
Cash at bank and in hand 1,226,881 136,492 1,363,373
Finance leases (508,800) 37,048 (471,752)
718,081 173,540 891,621
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Notes to the Financial Statements
1. General Information
J H Young Limited is a private company, limited by shares, incorporated in England & Wales, registered number 05584217 . The registered office is 19-23 Hythe Road, Dymchurch, Romney Marsh, Kent, TN29 0LN.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods 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.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.
2.3. Intangible Fixed Assets and Amortisation - Goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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.
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.
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2.4. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Freehold 2% Straight Line (Buildings Only)
Leasehold over 10 years
Plant & Machinery 25% reducing balance
Motor Vehicles 25% reducing balance
Fixtures & Fittings 20% reducing balance
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 credited or charged to profit or loss.

Impairment of fixed assets
At each reporting period end date, the company 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.

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.
2.5. Leasing and Hire Purchase Contracts
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 leases asset are consumed.
2.6. Stocks and Work in Progress
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
2.7. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
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2.8. 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.
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, 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.
2.9. 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 company’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 when the company has 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.
3. Turnover
Company turnover by geograpical market:
2023 2022
£ £
United Kingdom 14,720,515 16,884,451
14,720,515 16,884,451
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4. Other Operating Income
2023 2022
£ £
Grant income 10,000 1,007
Other operating income 6,827 -
16,827 1,007
5. Operating Profit
The operating profit is stated after charging:
2023 2022
£ £
Bad debts 43,925 67,596
Depreciation of tangible fixed assets 229,176 235,507
6. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2023 2022
£ £
Audit Services
Audit of the company's financial statements 12,500 15,500
7. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2023 2022
£ £
Wages and salaries 1,763,617 1,638,407
Social security costs 171,356 159,843
Other pension costs 34,751 29,817
1,969,724 1,828,067
8. Average Number of Employees
Average number of employees, including directors, during the year was: 61 (2022: 61)
61 61
9. Directors' remuneration
2023 2022
£ £
Emoluments 56,838 60,611
10. Interest Receivable and Similar Income
2023 2022
£ £
Bank interest receivable 39,569 5,684
Dividends from other fixed asset investments - unlisted 17,402 -
56,971 5,684
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11. Interest Payable and Similar Charges
2023 2022
£ £
Finance charges payable under finance leases and hire purchase contracts 23,026 13,975
Other finance charges - 2,614
23,026 16,589
12. Tax on Profit
The tax charge on the profit for the year was as follows:
Tax Rate 2023 2022
2023 2022 £ £
Current tax
UK Corporation Tax 23.5% 19.0% 171,672 231,365
Deferred Tax
Origination and reversal of timing differences 5,846 29,013
Total tax charge for the period 177,518 260,378
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
2023 2022
£ £
Profit before tax 771,777 1,439,411
Tax on profit at 23.5% (UK standard rate) 181,367 273,488
Goodwill/depreciation not allowed for tax 51,399 37,629
Expenses not deductible for tax purposes 2,961 1,788
Capital allowances (60,174 ) (81,540 )
Prior period adjustment 208 -
Revenue exempt from taxation (4,089 ) -
Total tax charge for the period 171,672 231,365
13. Intangible Assets
Goodwill
£
Cost
As at 1 January 2023 500,000
As at 31 December 2023 500,000
Amortisation
As at 1 January 2023 500,000
As at 31 December 2023 500,000
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14. Tangible Assets
Land & Property
Leasehold Plant & Machinery Motor Vehicles Fixtures & Fittings Total
£ £ £ £ £
Cost
As at 1 January 2023 198,059 603,741 958,115 98,102 1,858,017
Additions 58,000 55,340 143,490 - 256,830
Disposals - (29,500 ) (108,558 ) - (138,058 )
As at 31 December 2023 256,059 629,581 993,047 98,102 1,976,789
Depreciation
As at 1 January 2023 124,906 299,351 554,987 57,661 1,036,905
Provided during the period 17,584 77,056 128,847 5,689 229,176
Disposals - (27,289 ) (102,894 ) - (130,183 )
As at 31 December 2023 142,490 349,118 580,940 63,350 1,135,898
Net Book Value
As at 31 December 2023 113,569 280,463 412,107 34,752 840,891
As at 1 January 2023 73,153 304,390 403,128 40,441 821,112
Included above are assets held under finance leases or hire purchase contracts with a net book value as follows:
2023 2022
£ £
Plant & Machinery 150,470 133,772
Motor Vehicles 319,706 298,038
470,176 431,810
15. Investments
Unlisted
£
Cost
As at 1 January 2023 1,300
Additions 100,000
As at 31 December 2023 101,300
Provision
As at 1 January 2023 -
As at 31 December 2023 -
Net Book Value
As at 31 December 2023 101,300
As at 1 January 2023 1,300
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16. Stocks
2023 2022
£ £
Finished goods 1,567,516 1,593,032
17. Debtors
2023 2022
£ £
Due within one year
Trade debtors 1,376,755 1,576,129
Prepayments and accrued income 317,802 307,940
Other debtors 39,643 76,331
1,734,200 1,960,400
18. Creditors: Amounts Falling Due Within One Year
2023 2022
£ £
Net obligations under finance lease and hire purchase contracts 180,168 159,837
Trade creditors 831,003 904,054
Other creditors 281,941 121,028
Corporation tax 171,672 231,573
Taxation and social security 117,094 104,380
Accruals and deferred income 36,181 70,358
1,618,059 1,591,230
19. Creditors: Amounts Falling Due After More Than One Year
2023 2022
£ £
Net obligations under finance lease and hire purchase contracts 291,584 348,963
Of the creditors falling due within and after more than one year the following amounts are secured on the specifc assets to which the liability relates.
2023 2022
£ £
Net obligations under finance lease and hire purchase contracts 471,752 508,800
20. Deferred Taxation
The provision for deferred tax is made up as follows:
2023 2022
£ £
Other timing differences 196,103 190,257
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21. Provisions for Liabilities
Deferred Tax Total
£ £
As at 1 January 2023 190,257 190,257
Additions 5,846 5,846
Balance at 31 December 2023 196,103 196,103
22. Share Capital
2023 2022
Allotted, called up and fully paid £ £
100 Ordinary Shares of £ 1.00 each 100 100
23. Capital Commitments
2023 2022
£ £
At the end of the period 117,235 -
At the end of the period, the company had capital commitments contracted for but not provided in these financial statements
24. Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
2023 2022
£ £
Not later than one year 223,628 195,000
Later than one year and not later than five years 799,822 780,000
Later than five years 453,333 577,500
1,476,783 1,552,500
25. Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to profit or loss in respect of defined contribution schemes was £34,751 (2022: £29,817).
At the balance sheet date contributions of £7,269 (2022: £6,038) were due to the fund and are included in creditors.
26. Dividends
2023 2022
£ £
On equity shares:
Interim dividend paid 565,000 565,000
27. Related Party Disclosures
The company has leases for some of its premises through a related party pension scheme. The rents have been assessed by an Royal Institute Chartered Surveyor and negotiated on an arms length basis in accordance with the pension scheme rules. The rent payable to the pension scheme was £110,000. (2022: £110,000).
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