TW Ludgate & Son Ltd |
Strategic Report |
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The directors present their strategic report for the year ended 31 January 2024. |
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Review of business |
The company has continued to grow with improved profitability. Turnover for the year has increased by 3.1% from £16,660,281 to £17,176,838. Gross profit margin is 13.1% (2023: 12.4%). Profit before tax increased by 17.8% to £1,244,584 (2023:£1,056,372). Distributable reserves are in a strong position totalling £4,111,587 (2023: £3,983,645), being an increase of 3.2%. |
Principal risks and uncertainties |
The company may not perform as expected either due to external factors such as competitive pressure. There is also general risk given the global economic situation, but the directors continue to manage this closely. |
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This report was approved by the board on 30 October 2024 and signed on its behalf. |
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M J Ludgate |
Director |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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. |
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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. |
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Other information |
The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. |
We have nothing to report in this regard. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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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 |
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the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. |
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Matters on which we are required to report by exception |
TW Ludgate & Son Ltd |
Statement of Cash Flows |
for the year ended 31 January 2024 |
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Notes |
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2024 |
|
2023 |
£ |
£ |
Operating activities |
Profit for the financial year |
940,442 |
|
859,667 |
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Adjustments for: |
Loss on sale of fixed assets |
2,898 |
|
3,165 |
Interest receivable |
(64,185) |
|
(14,324) |
Tax on profit on ordinary activities |
304,142 |
|
196,705 |
Depreciation |
74,310 |
|
65,883 |
Decrease in stocks |
37,859 |
|
14,667 |
Increase in debtors |
(4,753) |
|
(120,624) |
Increase in creditors |
197,626 |
|
48,069 |
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1,488,339 |
|
1,053,208 |
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Interest received |
64,185 |
|
14,324 |
Corporation tax paid |
(196,463) |
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(223,841) |
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Cash generated by operating activities |
1,356,061 |
|
843,691 |
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Investing activities |
Payments to acquire tangible fixed assets |
(116,890) |
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(70,278) |
Proceeds from sale of tangible fixed assets |
14,501 |
|
1,166 |
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Cash used in investing activities |
(102,389) |
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(69,112) |
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Financing activities |
Equity dividends paid |
(812,500) |
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(675,000) |
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Cash used in financing activities |
(812,500) |
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(675,000) |
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Net cash generated |
Cash generated by operating activities |
1,356,061 |
|
843,691 |
Cash used in investing activities |
(102,389) |
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(69,112) |
Cash used in financing activities |
(812,500) |
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(675,000) |
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Net cash generated |
441,172 |
|
99,579 |
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Cash and cash equivalents at 1 February |
3,672,243 |
|
3,572,664 |
Cash and cash equivalents at 31 January |
4,113,415 |
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3,672,243 |
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Cash and cash equivalents comprise: |
Cash at bank |
4,174,094 |
|
3,716,795 |
Bank overdrafts |
9 |
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(60,679) |
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(44,552) |
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4,113,415 |
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3,672,243 |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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2 |
Analysis of turnover |
2024 |
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2023 |
£ |
£ |
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Sale of goods |
17,176,838 |
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16,660,281 |
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By geographical market: |
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UK |
17,176,838 |
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16,660,281 |
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3 |
Operating profit |
2024 |
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2023 |
£ |
£ |
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This is stated after charging: |
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Depreciation of owned fixed assets |
74,310 |
|
65,883 |
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Auditors' remuneration for audit services |
11,000 |
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- |
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Carrying amount of stock sold |
14,872,563 |
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14,529,455 |
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4 |
Staff costs |
2024 |
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2023 |
£ |
£ |
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Wages and salaries |
484,017 |
|
473,648 |
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Social security costs |
53,303 |
|
48,263 |
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Other pension costs |
12,347 |
|
10,510 |
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|
549,667 |
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532,421 |
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Employees |
Number |
Number |
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Average number of employees during the year |
16 |
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17 |
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5 |
Taxation |
2024 |
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2023 |
£ |
£ |
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Analysis of charge in period |
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Current tax: |
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UK corporation tax on profits of the period |
288,170 |
|
196,464 |
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Adjustments in respect of previous periods |
(25) |
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- |
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288,145 |
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196,464 |
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Deferred tax: |
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Origination and reversal of timing differences |
15,997 |
|
241 |
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Tax on profit on ordinary activities |
304,142 |
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196,705 |
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Factors affecting tax charge for period |
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The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
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2024 |
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2023 |
£ |
£ |
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Profit on ordinary activities before tax |
1,244,584 |
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1,056,372 |
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Standard rate of corporation tax in the UK |
24% |
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19% |
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£ |
£ |
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Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
298,700 |
|
200,711 |
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Effects of: |
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Expenses not deductible for tax purposes |
1,057 |
|
594 |
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Capital allowances for period in excess of depreciation |
(11,587) |
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(4,841) |
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Adjustments to tax charge in respect of previous periods |
(25) |
|
- |
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Current tax charge for period |
288,145 |
|
196,464 |
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6 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery |
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Fixtures, fittings, tools and equipment |
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Total |
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At cost |
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At cost |
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At cost |
£ |
£ |
£ |
£ |
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Cost or valuation |
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At 1 February 2023 |
139,892 |
|
689,511 |
|
114,695 |
|
944,098 |
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Additions |
- |
|
116,890 |
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- |
|
116,890 |
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Disposals |
- |
|
(78,638) |
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- |
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(78,638) |
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At 31 January 2024 |
139,892 |
|
727,763 |
|
114,695 |
|
982,350 |
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Depreciation |
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At 1 February 2023 |
- |
|
502,119 |
|
104,340 |
|
606,459 |
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Charge for the year |
- |
|
71,721 |
|
2,589 |
|
74,310 |
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On disposals |
- |
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(61,239) |
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- |
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(61,239) |
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At 31 January 2024 |
- |
|
512,601 |
|
106,929 |
|
619,530 |
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Carrying amount |
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At 31 January 2024 |
139,892 |
|
215,162 |
|
7,766 |
|
362,820 |
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At 31 January 2023 |
139,892 |
|
187,392 |
|
10,355 |
|
337,639 |
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7 |
Stocks |
2024 |
|
2023 |
£ |
£ |
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Raw materials and consumables |
270,255 |
|
308,114 |
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8 |
Debtors |
2024 |
|
2023 |
£ |
£ |
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Trade debtors |
1,050,801 |
|
1,056,647 |
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Other debtors |
42,826 |
|
27,152 |
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Prepayments and accrued income |
16,461 |
|
21,536 |
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1,110,088 |
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1,105,335 |
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9 |
Creditors: amounts falling due within one year |
2024 |
|
2023 |
£ |
£ |
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Bank overdrafts |
60,679 |
|
44,552 |
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Trade creditors |
838,271 |
|
778,576 |
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Corporation tax |
288,170 |
|
196,488 |
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Other taxes and social security costs |
11,373 |
|
13,549 |
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Other creditors |
489,642 |
|
337,132 |
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Accruals and deferred income |
53,999 |
|
66,402 |
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|
1,742,134 |
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1,436,699 |
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10 |
Deferred taxation |
2024 |
|
2023 |
£ |
£ |
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Accelerated capital allowances |
53,536 |
|
37,539 |
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|
2024 |
|
2023 |
£ |
£ |
|
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At 1 February |
37,539 |
|
37,298 |
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Charged to the profit and loss account |
15,997 |
|
241 |
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At 31 January |
53,536 |
|
37,539 |
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11 |
Share capital |
Nominal |
|
2024 |
|
2024 |
|
2023 |
value |
Number |
£ |
£ |
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Allotted, called up and fully paid: |
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Ordinary shares |
£1 each |
|
10,000 |
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10,000 |
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10,000 |
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12 |
Profit and loss account |
2024 |
|
2023 |
£ |
£ |
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At 1 February |
3,983,645 |
|
3,798,978 |
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Profit for the financial year |
940,442 |
|
859,667 |
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Dividends |
(812,500) |
|
(675,000) |
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At 31 January |
4,111,587 |
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3,983,645 |
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13 |
Dividends |
2024 |
|
2023 |
£ |
£ |
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Dividends on ordinary shares (note 12) |
812,500 |
|
675,000 |
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14 |
Other financial commitments |
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Total future minimum lease payments under non-cancellable operating leases: |
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Land and buildings |
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Land and buildings |
|
|
|
|
|
|
2024 |
|
2023 |
£ |
£ |
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Falling due: |
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within one year |
91,300 |
|
80,300 |
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within two to five years |
440,000 |
|
401,500 |
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|
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|
|
|
531,300 |
|
481,800 |
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15 |
Related party transactions |
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During the period, the company paid rent of £91,300 (2023: £80,300) to Mr M J Ludgate for the use of the premises. The company also purchased £24,225 of meat from a farm owned by Mr M J Ludgate, nothing was owed to the farm at the year end. |
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16 |
Controlling party |
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During the current and previous financial year, the company was controlled by Mr M J Ludgate, the director who has a majority shareholding in the company. |
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17 |
Presentation currency |
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The financial statements are presented in Sterling. |
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18 |
Legal form of entity and country of incorporation |
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TW Ludgate & Son Ltd is a private company limited by shares and incorporated in England. |
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19 |
Principal place of business |
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The address of the company's principal place of business is: |
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Unit 3b Dormer Road |
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Thame Industrial Estate |
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Thame |
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Oxon |
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OX9 3UD |