REGISTERED NUMBER: NI638488 (Northern Ireland) |
NEWELL GROUP LIMITED |
Group Strategic Report, Directors' Report and |
Audited Consolidated Financial Statements for the Year Ended 31 January 2024 |
REGISTERED NUMBER: NI638488 (Northern Ireland) |
NEWELL GROUP LIMITED |
Group Strategic Report, Directors' Report and |
Audited Consolidated Financial Statements for the Year Ended 31 January 2024 |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Contents of the Consolidated Financial Statements |
FOR THE YEAR ENDED 31 JANUARY 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 3 |
Directors' Report | 4 | to | 5 |
Independent Auditors' Report | 6 | to | 9 |
Consolidated Income Statement | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Statement of Cash Flows |
16 |
Notes to the Consolidated Financial Statements | 17 | to | 27 |
NEWELL GROUP LIMITED |
Company Information |
FOR THE YEAR ENDED 31 JANUARY 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
BANKERS: | Danske Bank |
5-6 Market Square |
Dungannon |
Co. Tyrone |
BT70 1AB |
SOLICITORS: |
40 Molesworth Street |
Cookstown |
Co. Tyrone |
BT80 8PH |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Group Strategic Report |
FOR THE YEAR ENDED 31 JANUARY 2024 |
The directors present their strategic report of the Company and the Group for the year ended 31 January 2024. |
REVIEW OF BUSINESS |
The director aims to present a balanced and comprehensive review of the development and performance of the group during the year and its position at the year end. The review is consistent with the size and nature of the group and is written in the context of the risks and uncertainties faced. |
The director considers that the key performance indicators are those that communicate the group's financial performance as a whole, being turnover, gross profit, gross profit percentage and operating profit. |
Sales during the year decreased from £31,807,676 to £31,240,798. Gross profit increased to £7,688,790 (2023: £7,177,148) with gross profit percentage increasing from 22.56% to 24.61%. Overall expenditure for the group increased resulting in an operating profit of £(132,124) (2023: £60,892). The group continues to remain competitive in the local market. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main risks from the group's operations are business interruption, customer proposition, food and product safety and liquidity. The directors review and agree policies for managing each of these risks and they are summarised below. The policies have remained unchanged from previous years. |
Business Interruption |
Distribution and systems infrastructures are fundamental to ensuring the normal continuity of trading in the stores. If an accident occurred to this infrastructure or another key facility, this could have a detrimental impact on the group's ability to operate effectively. |
Customer proposition |
The group operates in a very competitive industry. Also, customers' shopping habits are influenced by broader economic factors that the business does not control. If the group fail to keep its proposition aligned with customers' expectations, then they may choose not to shop with us and sales will suffer. |
Food and product safety |
The director is aware that, if the group fail to deliver excellent standards of hygiene and safety in its products, there is a potential to harm customers and damage business reputation. Food safety is of paramount importance. |
Liquidity risk |
The group generates sufficient cashflow to ensure it has adequate available funds for operations and planned expansions. |
FUTURE DEVELOPMENTS |
The group is committed to long term creation of shareholder value by increasing the group's market share. The group aims to increase revenue and operating profits. The group will continue to meet the needs of customers and develop innovative solutions for their needs while remaining highly competitive. |
FINANCIAL KEY PERFORMANCE INDICATORS |
The key performance indicators of the business are those as stated below: |
2024 | 2023 |
Revenue | 31,240,798 | 31,807,676 |
Gross Profit | 7,688,790 | 7,177,148 |
Gross Profit Margin | 24.61% | 22.56% |
The director is pleased with the results for the year and believe the group continues to operate strongly in a very competitive market. |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Group Strategic Report |
FOR THE YEAR ENDED 31 JANUARY 2024 |
STRATEGY & DEVELOPMENT |
The group's success is dependant on the ongoing management of business risks and uncertainties it faces. The group will continue to improve upon its position and concentrate on achieving maximum growth in its market sector while at the same time continuing to improve efficiency in all areas of its operations. |
BUSINESS ENVIRONMENT |
The local supermarket retailing market is highly saturated with multiple large supermarkets operating in the surrounding area as well as independent retailers. The group is performing well and appears strong despite its saturated nature. |
EMPLOYEES |
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests. |
Information on matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group performance. |
Applications for employment by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant concerned. In the event of members becoming disabled, every effort is made to ensure that their employment with the group continues and appropriate training is arranged. It is the policy of the group that the training, career development and promotion of a disabled person should, as far as possible, be identical of that of a person who does not suffer from a disability. |
ON BEHALF OF THE BOARD: |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Directors' Report |
FOR THE YEAR ENDED 31 JANUARY 2024 |
The directors present their report with the audited financial statements of the Company and the Group for the year ended 31 January 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group is that of retail supermarkets and filling stations. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 January 2024 will be £167,714 (2023: £Nil). |
RESEARCH AND DEVELOPMENT |
Research and development activities continues to be a high priority with the development of new products within the group. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 February 2023 to the date of this report. |
DISCLOSURES REQUIRED UNDER SCHEDULE 7 |
In accordance with Section 414C (11) of Companies Act 2006, the directors have elected to disclose details of the business review, principal risks and uncertainties, employment policy and future developments in the group's Strategic Report which would otherwise be required to be disclosed in the Directors' Report. |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Group Strategic Report, 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group 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 and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group 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 the Group 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 Group'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 Group's auditors are aware of that information. |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Directors' Report |
FOR THE YEAR ENDED 31 JANUARY 2024 |
AUDITORS |
The auditors, CavanaghKelly, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Independent Auditors' Report to the Members of |
Newell Group Limited |
Opinion |
We have audited the financial statements of Newell Group Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 January 2024 which comprise the Consolidated Income Statement, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated 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 Group's and of the Parent Company affairs as at 31 January 2024 and of the Group's 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's and the Parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report 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 Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
Newell Group Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report. |
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 by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the Parent Company 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 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 Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so. |
Independent Auditors' Report to the Members of |
Newell Group 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 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- | We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation; |
- | We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance; |
- | We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations; |
- | Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and |
- | Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override. |
The audit response to risks identified included: |
- | Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above; |
- | Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; |
- | In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
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. |
Independent Auditors' Report to the Members of |
Newell Group 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 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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Consolidated |
Income Statement |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 | 31,240,798 | 31,807,676 |
Cost of sales | (23,552,008 | ) | (24,630,528 | ) |
GROSS PROFIT | 7,688,790 | 7,177,148 |
Distribution costs | (3,771,198 | ) | (3,372,021 | ) |
Administrative expenses | (4,049,716 | ) | (3,744,235 | ) |
OPERATING (LOSS)/PROFIT | 6 | (132,124 | ) | 60,892 |
Finance income | 3,201 | - |
(128,923 | ) | 60,892 |
Finance costs | 7 | (158,563 | ) | (93,956 | ) |
LOSS BEFORE TAXATION | (287,486 | ) | (33,064 | ) |
Tax on loss | 8 | (270,243 | ) | (126,590 | ) |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(557,729 |
) |
(159,654 |
) |
Loss attributable to: |
Owners of the parent | (557,729 | ) | (159,654 | ) |
Total comprehensive income attributable to: |
Owners of the parent | (557,729 | ) | (159,654 | ) |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Consolidated Statement of Financial Position |
31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
NON-CURRENT ASSETS |
Intangible assets | 11 | 2,337,499 | 3,430,245 |
Tangible assets | 12 | 8,982,492 | 9,170,611 |
Investments | 13 | - | - |
11,319,991 | 12,600,856 |
CURRENT ASSETS |
Stocks | 14 | 1,022,844 | 966,888 |
Receivables: amounts falling due within one year |
15 |
427,967 |
617,876 |
Cash at bank and in hand | 924,478 | 1,090,850 |
2,375,289 | 2,675,614 |
PAYABLES |
Amounts falling due within one year | 16 | (6,729,314 | ) | (7,091,598 | ) |
NET CURRENT LIABILITIES | (4,354,025 | ) | (4,415,984 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
6,965,966 |
8,184,872 |
PAYABLES |
Amounts falling due after more than one year |
17 |
(1,570,834 |
) |
(2,054,167 |
) |
PROVISIONS FOR LIABILITIES | 20 | (241,905 | ) | (252,035 | ) |
NET ASSETS | 5,153,227 | 5,878,670 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 7,612,504 | 7,612,504 |
Capital redemption reserve | 2,887,500 | 2,887,500 |
Retained earnings | (5,346,777 | ) | (4,621,334 | ) |
SHAREHOLDERS' FUNDS | 5,153,227 | 5,878,670 |
The financial statements were approved by the Board of Directors and authorised for issue on 15 October 2024 and were signed on its behalf by: |
Colin John Conway - Director |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Company Statement of Financial Position |
31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
NON-CURRENT ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Receivables: amounts falling due within one year |
15 |
PAYABLES |
Amounts falling due within one year | 16 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | - | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Consolidated Statement of Changes in Equity |
FOR THE YEAR ENDED 31 JANUARY 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 February 2022 | 7,612,504 | (4,461,680 | ) | 2,887,500 | 6,038,324 |
Changes in equity |
Total comprehensive income | - | (159,654 | ) | - | (159,654 | ) |
Balance at 31 January 2023 | 7,612,504 | (4,621,334 | ) | 2,887,500 | 5,878,670 |
Changes in equity |
Dividends | - | (167,714 | ) | - | (167,714 | ) |
Total comprehensive income | - | (557,729 | ) | - | (557,729 | ) |
Balance at 31 January 2024 | 7,612,504 | (5,346,777 | ) | 2,887,500 | 5,153,227 |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Company Statement of Changes in Equity |
FOR THE YEAR ENDED 31 JANUARY 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 February 2022 |
Changes in equity |
Balance at 31 January 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Balance at 31 January 2024 |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Consolidated Statement of Cash Flows |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,376,279 | 1,227,689 |
Interest paid | (158,563 | ) | (93,956 | ) |
Tax paid | (137,006 | ) | (171,975 | ) |
Net cash from operating activities | 1,080,710 | 961,758 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (339,448 | ) | (840,269 | ) |
Sale of tangible fixed assets | - | 4,000 |
Interest received | 3,201 | - |
Net cash from investing activities | (336,247 | ) | (836,269 | ) |
Cash flows from financing activities |
Loan repayments in year | (743,121 | ) | (665,712 | ) |
Equity dividends paid | (167,714 | ) | - |
Net cash from financing activities | (910,835 | ) | (665,712 | ) |
Decrease in cash and cash equivalents | (166,372 | ) | (540,223 | ) |
Cash and cash equivalents at beginning of year |
2 |
1,090,850 |
1,631,073 |
Cash and cash equivalents at end of year |
2 |
924,478 |
1,090,850 |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Notes to the Consolidated 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 | (287,486 | ) | (33,064 | ) |
Depreciation charges | 1,402,368 | 1,366,358 |
Loss on disposal of fixed assets | - | 3,225 |
Impairment loss | 217,946 | - |
Finance costs | 158,563 | 93,956 |
Finance income | (3,201 | ) | - |
1,488,190 | 1,430,475 |
Increase in stocks | (55,956 | ) | (122,036 | ) |
Decrease/(increase) in trade and other debtors | 39,495 | (146,024 | ) |
(Decrease)/increase in trade and other creditors | (95,450 | ) | 65,274 |
Cash generated from operations | 1,376,279 | 1,227,689 |
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 | 924,478 | 1,090,850 |
Year ended 31 January 2023 |
31/1/23 | 1/2/22 |
£ | £ |
Cash and cash equivalents | 1,090,850 | 1,631,073 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/2/23 | Cash flow | At 31/1/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,090,850 | (166,372 | ) | 924,478 |
1,090,850 | (166,372 | ) | 924,478 |
Debt |
Debts falling due within 1 year | (743,121 | ) | 259,788 | (483,333 | ) |
Debts falling due after 1 year | (2,054,167 | ) | 483,333 | (1,570,834 | ) |
(2,797,288 | ) | 743,121 | (2,054,167 | ) |
Total | (1,706,438 | ) | 576,749 | (1,129,689 | ) |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Notes to the Consolidated Financial Statements |
FOR THE YEAR ENDED 31 JANUARY 2024 |
1. | STATUTORY INFORMATION |
Newell Group Limited is a |
2. | STATEMENT OF COMPLIANCE |
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 are stated in sterling which is the functional currency of the company. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on a going concern basis under the historical cost convention. Historical cost is generally based on the fair value of consideration given in exchange for assets. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the group financial statements. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The Group has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirement of paragraph 33.7. |
Basis of consolidation |
The consolidated income statement, consolidated statement of changes in equity, consolidated balance sheet and consolidated statement of cash flows the financial statements of the company and its subsidiary's undertakings made up to 31 January 2024. Inter-company transactions, balances and cash flows between group companies are eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements in accordance with generally accepted accounting principles requires management to make estimates, judgements and assumptions that affect the reported amounts of assets and liabilities, income and expenditure in the reporting period. Actual results could differ from those estimates. Therefore, management believe the critical accounting policies where estimates, judgements and assumptions are necessarily applied are summarised below: |
Impairment of Fixed Assets: |
The group's tangible fixed assets are stated at cost less accumulated depreciation. The assets are depreciated over their estimated useful economic lives. The carrying values of such assets are reviewed annually for any indications of impairment. The carrying value of assets is tested for impairment where events or changes in circumstances indicate the carrying value is incorrectly stated. If such a review indicates the carrying value is overstated, the value of the asset is restated to its deemed recoverable amount. Recoverable amount is deemed to be the higher of the asset's fair value less costs to sell, or its value in use. Value in use is calculated based on the discounted future cash flows of the asset, or of the cash generating unit to which the asset belongs. |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
3. | ACCOUNTING POLICIES - continued |
Revenue |
Revenue is recognised to the extent that is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must be met before revenue is recognised: |
Sale of goods |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- the group has transferred the significant risks and rewards of ownership to the buyer; |
- the group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- the amount of revenue can be measured reliably; |
- it is probable that the group will receive the consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Intangible assets are reviewed annually for impairment. |
Property, plant and equipment |
Property, plant and equipment are stated at cost or at valuation, less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended. The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows: |
Land and Freehold property 0-2% Straight line |
Plant and machinery 15% Reducing balance |
Fixtures, fittings and equipment 20% Reducing balance |
Motor vehicles 20% Straight line |
The carrying values of property, plant and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. |
Inventories |
Inventories are valued at the lower of cost and net realisable value. Inventories are determined on a first-in first-out basis. Cost comprises expenditure incurred in the normal course of business in bringing inventories to their present location and condition. Full provision is made for obsolete and slow moving items. |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company and group have chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by related parties and are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 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. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other payables, bank loans and overdrafts and amounts owed to related parties 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. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
(iii) Offsetting |
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to income statement on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to the income statement in the period to which they relate. |
Payments in respect of other post-retirement benefits are charged to profit or loss in the period to which they relate. |
Patents and licences |
The director considers the intangible asset to have an indefinite useful life and therefore no amortisation has been provided. |
Share capital |
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from proceeds. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand and deposits held at call with banks. |
Finance Costs |
Finance costs are charged to the Income Statement over the term of the debt. |
4. | TURNOVER |
The turnover and profit/(loss) before taxation are attributable to the one principal activity of the Group. |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 4,073,839 | 3,533,789 |
Social security costs | 250,104 | 211,808 |
Other pension costs | 57,598 | 80,259 |
4,381,541 | 3,825,856 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Selling and distribution | 266 | 261 |
Administration | 12 | 13 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 152,416 | 12,086 |
6. | OPERATING (LOSS)/PROFIT |
The operating loss (2023 - operating profit) is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 13,252 | 16,448 |
Rent payable | 117,525 | 133,100 |
Depreciation - owned assets | 527,567 | 532,683 |
Loss on disposal of fixed assets | - | 3,225 |
Goodwill amortisation | 833,675 | 833,674 |
Patents and licences amortisation | 41,125 | - |
Auditors' remuneration | 8,425 | 8,138 |
Foreign exchange differences | (1,964 | ) | (19 | ) |
7. | FINANCE COSTS |
2024 | 2023 |
£ | £ |
Bank loan interest | 154,069 | 93,956 |
Other interest payable | 4,494 | - |
158,563 | 93,956 |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the loss for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 180,426 | 93,323 |
Adjustment in respect of prior |
period | 99,947 | - |
Total current tax | 280,373 | 93,323 |
Deferred tax | (10,130 | ) | 33,267 |
Tax on loss | 270,243 | 126,590 |
Reconciliation of total tax charge 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 | (287,486 | ) | (33,064 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of 24.030 % (2023 - 19 %) |
(69,083 |
) |
(6,282 |
) |
Effects of: |
Expenses not deductible for tax purposes | 2,218 | 11,826 |
Capital allowances in excess of depreciation | - | (68,663 | ) |
Depreciation in excess of capital allowances | 49,433 | - |
Adjustments to tax charge in respect of previous periods | 99,947 | - |
Deferred Tax | (10,130 | ) | 33,267 |
Goodwill amortisation | 197,858 | 158,398 |
Consolidation adjustment | - | (1,956 | ) |
Total tax charge | 270,243 | 126,590 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary A Shares shares of 1 each |
Interim | 86,714 | - |
Ordinary B Shares shares of 1 each |
Interim | 78,000 | - |
Ordinary C Shares shares of 1 each |
Interim | 3,000 | - |
167,714 | - |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Patents and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1 February 2023 | 8,336,740 | 908,631 | 9,245,371 |
Impairments | - | (217,946 | ) | (217,946 | ) |
At 31 January 2024 | 8,336,740 | 690,685 | 9,027,425 |
AMORTISATION |
At 1 February 2023 | 5,815,126 | - | 5,815,126 |
Amortisation for year | 833,675 | 41,125 | 874,800 |
At 31 January 2024 | 6,648,801 | 41,125 | 6,689,926 |
NET BOOK VALUE |
At 31 January 2024 | 1,687,939 | 649,560 | 2,337,499 |
At 31 January 2023 | 2,521,614 | 908,631 | 3,430,245 |
12. | PROPERTY, PLANT AND EQUIPMENT |
Group |
Land and | Fixtures |
freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 February 2023 | 8,667,056 | 2,374,345 | 3,304,566 | 70,654 | 14,416,621 |
Additions | - | 123,149 | 216,299 | - | 339,448 |
At 31 January 2024 | 8,667,056 | 2,497,494 | 3,520,865 | 70,654 | 14,756,069 |
DEPRECIATION |
At 1 February 2023 | 1,348,662 | 1,687,359 | 2,147,709 | 62,280 | 5,246,010 |
Charge for year | 119,560 | 121,488 | 280,757 | 5,762 | 527,567 |
At 31 January 2024 | 1,468,222 | 1,808,847 | 2,428,466 | 68,042 | 5,773,577 |
NET BOOK VALUE |
At 31 January 2024 | 7,198,834 | 688,647 | 1,092,399 | 2,612 | 8,982,492 |
At 31 January 2023 | 7,318,394 | 686,986 | 1,156,857 | 8,374 | 9,170,611 |
Newell Group (the company) had no fixed assets in the year (2023: £NIL). |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 February 2023 |
and 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
The Group or the Company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 50 Newell Road, Dungannon, Country Tyrone, BT70 1EG |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
(Loss)/profit for the year | ( |
) |
Registered office: 50 Newell Road, Dungannon, Country Tyrone, BT70 1EG |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
14. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Finished goods | 1,022,844 | 966,888 |
Newell Group (the company) held no stock at year end (2023: £NIL). |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
15. | RECEIVABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade receivables | 7,931 | 12,410 |
Amounts owed by group undertakings | - | - |
Other receivables | 198,755 | 197,295 |
Tax | 10,587 | 161,001 |
VAT | - | 26,658 |
Prepayments | 210,694 | 220,512 |
427,967 | 617,876 |
16. | PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 483,333 |
743,121 |
Trade payables | 1,787,137 | 1,987,303 |
Amounts owed to group undertakings | - | - |
Tax | 70,197 | 77,244 |
Social security and other taxes | 83,474 | 21,613 |
VAT | 53,170 | - | - | - |
Other payables | 175,049 | 160,955 |
Directors' current accounts | 3,678,289 | 3,753,224 | 3,678,289 | 3,753,224 |
Accruals and deferred income | 398,665 | 348,138 |
6,729,314 | 7,091,598 |
17. | PAYABLES: AMOUNTS FALLING DUE AFTER ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Bank loans (see note 18) | 1,570,834 | 2,054,167 |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 483,333 | 743,121 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 1,570,834 | 483,333 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | - | 1,449,999 |
Amounts falling due in more than five | years: |
Repayable by instalments |
Bank loans more 5 yr by instal | - | 120,835 |
The bank loan is secured by: |
(a) Mortgage debenture incorporating a fixed and floating charge over all company assets present and future including a specific charge over premises at Lineside, Coalisland and all fixtures thereon. |
19. | FINANCIAL INSTRUMENTS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
Carrying amount of financial assets |
Debt instruments measured at amortised cost |
206,686 |
209,705 |
371,131 |
572,661 |
Carrying amount of financial liabilities |
Measured at amortised cost | 8,093,186 | 9,046,908 | 3,720,908 | 3,754,724 |
20. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 241,905 | 252,035 |
Group |
Deferred tax |
£ |
Balance at 1 February 2023 | 252,035 |
Credit to Income Statement during year | (10,130 | ) |
Balance at 31 January 2024 | 241,905 |
NEWELL GROUP LIMITED (REGISTERED NUMBER: NI638488) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
Value: | £ | £ |
- | Ordinary A Shares | £1.00 | - | - |
2,283,752 | Ordinary B Shares | £1.00 | 2,283,752 | 2,283.752 |
3,996,564 | Ordinary C Shares | £1.00 | 3,996,564 | 3,996,564 |
1,332,188 | Ordinary D Shares | £1.00 | 1,332,188 | 1,332,188 |
7,612,504 | 7,612,504 |
22. | RELATED PARTY DISCLOSURES |
The group has availed of the exemption in FRS 102 "Related Party Disclosures" from disclosing transactions with other group undertakings which are wholly owned subsidiaries. |
The group has identified the following transactions which require disclosure under the terms of FRS 102 'Related Party Disclosures'. |
Included in directors' current accounts within note 16 of the financial statements is £3,678,289 (2023: £3,753,224) owed to Colin Conway, Annie Quinn, Joe Conway, Petra Conway and Rosie Conway. |
Newell Stores Limited is the sole employer in the EMB Special Pension Fund, and as such is regarded as a related party under Section 33 of FRS 102. Normal commercial terms, including the current rent payable of £117,525 (2023: £133,100) apply to the rental agreement. |
The ultimate controlling party is the Conway family. |