Company registration number 10023208 (England and Wales)
NORWOOD GROUP LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
PAGES FOR FILING WITH REGISTRAR
NORWOOD GROUP LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
NORWOOD GROUP LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
3
277
427
Tangible assets
4
563,578
695,084
563,855
695,511
Current assets
Stocks
115,683
120,118
Debtors
5
3,287,564
2,443,036
Cash at bank and in hand
43,763
106,337
3,447,010
2,669,491
Creditors: amounts falling due within one year
6
(1,668,836)
(1,370,450)
Net current assets
1,778,174
1,299,041
Total assets less current liabilities
2,342,029
1,994,552
Creditors: amounts falling due after more than one year
7
(106,361)
(174,585)
Provisions for liabilities
8
(95,658)
(126,062)
Net assets
2,140,010
1,693,905
Capital and reserves
Called up share capital
9
10
10
Profit and loss reserves
10
2,140,000
1,693,895
Total equity
2,140,010
1,693,905

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 30 August 2024 and are signed on its behalf by:
J M Bannister
Director
Company Registration No. 10023208
NORWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
1
Accounting policies
Company information

Norwood Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is Maple House, Sandbrook Business Park, Rochdale, Lancashire, United Kingdom, OL11 1LQ.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

1.2
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 contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing bills raised as a proportion of contract value. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.3
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 10 years.

1.4
Tangible fixed assets

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

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

Plant and equipment
15% - 20% reducing balance
Fixtures and fittings
20% reducing balance
Office equipment
20% reducing balance
Motor vehicles
25% 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.

NORWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 3 -
1.5
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).

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.

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.

1.7
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

1.8
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.

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.

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.

NORWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities

Basic financial liabilities, including creditors and 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 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. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.9
Equity instruments

Equity instruments issued by the company 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 company.

1.10
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 enacted or substantively enacted at the balance sheet date. 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.

1.11
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.

1.12
Retirement benefits

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

NORWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 5 -
1.13
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.

2
Employees

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

2024
2023
Number
Number
Total
25
23
3
Intangible fixed assets
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
1,502
Amortisation and impairment
At 1 May 2023
1,075
Amortisation charged for the year
150
At 30 April 2024
1,225
Carrying amount
At 30 April 2024
277
At 30 April 2023
427
NORWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 6 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 May 2023
991,687
Additions
15,788
Disposals
(1,533)
At 30 April 2024
1,005,942
Depreciation and impairment
At 1 May 2023
296,603
Depreciation charged in the year
146,269
Eliminated in respect of disposals
(508)
At 30 April 2024
442,364
Carrying amount
At 30 April 2024
563,578
At 30 April 2023
695,084
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,393,107
1,191,371
Other debtors
1,894,457
1,251,665
3,287,564
2,443,036
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
10,000
10,000
Trade creditors
1,226,188
1,022,532
Amounts owed to group undertakings
45,000
45,000
Corporation tax
206,767
124,811
Other taxation and social security
55,633
37,875
Other creditors
125,248
130,232
1,668,836
1,370,450
NORWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
6
Creditors: amounts falling due within one year
(Continued)
- 7 -

Finance lease obligations of £57,669 (2023: £60,993) due in less than one year, included in other creditors, are secured against the specific assets to which they relate.

 

Bank loans represent funds drawn down in June 2020 under the Bounce Back Loan scheme, which is unsecured and accrues interest at 2.5% 12 months after the draw down date.

7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
10,833
21,734
Other creditors
95,528
152,851
106,361
174,585

Finance lease obligations of £95,528 (2023: £152,851) due in greater than one year, included in other creditors, are secured against the specific assets to which they relate.

 

Bank loans represent funds drawn down in June 2020 under the Bounce Back Loan scheme, which is unsecured and accrues interest at 2.5% 12 months after the draw down date.

8
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
96,194
126,477
Short term timing differences
(536)
(415)
95,658
126,062
2024
Movements in the year:
£
Liability at 1 May 2023
126,062
Credit to profit or loss
(30,404)
Liability at 30 April 2024
95,658
NORWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
9
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 10p each
75
75
10
8
Ordinary B shares of 10p each
25
25
-
2
100
100
10
10

Both the Ordinary A and Ordinary B shares have attached to them full dividend and capital distribution rights.

10
Reserves

Profit and loss reserves

The profit and loss reserve includes all current and prior retained profits and losses.

11
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Helen Davies
Statutory Auditor:
Azets Audit Services
12
Operating lease commitments
Lessee

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

2024
2023
£
£
26,482
83,478
13
Related party transactions
Transactions with related parties

At the balance sheet date, the company was owed £55,759 by (2023: 341,872 owed to) Building Engineering Solutions Limited, a fellow group company, which arose as a result of trading in the year. In addition, the company owed Building Engineering Solutions Limited £45,000 (2023: £45,000) as a result of an advance made to the company in a prior period. Sales of £1,281,155 (2023: £1,760,017) were made to, and purchases of £582,365 (2023: £709,896) made from Building Engineering Solutions Limited in the year.

 

At the balance sheet date, the company was owed £138,377 (2023: £98,011) by BGEN Limited, a fellow group company, which arose as a result of trading in the year. Sales of £621,708 (2023: £318,495) were made to BGEN Limited in the year.

NORWOOD GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
14
Parent company

The parent company of the smallest group preparing consolidated accounts including this company is Building Environmental Services Limited, a company registered in England and Wales. Their financial statements are available from Companies House, Crown Way, Maindy, Cardiff, CF4 3UZ.

 

The parent company of the largest group preparing consolidated accounts including this company is BGEN Limited, a company registered in England and Wales. Their financial statements are available from Companies House, Crown Way, Maindy, Cardiff, CF4 3UZ.

 

The company was under the control of the directors of BGEN Limited, which had a controlling share of the company's issued ordinary share capital throughout the current and preceding year.

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