REGISTERED NUMBER: |
Unaudited Financial Statements |
for the Year Ended 30 December 2023 |
for |
Worcestershire Building Supplies Ltd |
REGISTERED NUMBER: |
Unaudited Financial Statements |
for the Year Ended 30 December 2023 |
for |
Worcestershire Building Supplies Ltd |
Worcestershire Building Supplies Ltd (Registered number: 01095798) |
Contents of the Financial Statements |
for the year ended 30 December 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 4 |
Worcestershire Building Supplies Ltd |
Company Information |
for the year ended 30 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
Chartered Accountants |
Meryll House |
57 Worcester Road |
Bromsgrove |
Worcestershire |
B61 7DN |
Worcestershire Building Supplies Ltd (Registered number: 01095798) |
Balance Sheet |
30 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
CURRENT ASSETS |
Stocks |
Debtors | 5 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 6 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
7 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 9 |
Revaluation reserve | 10 |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
Worcestershire Building Supplies Ltd (Registered number: 01095798) |
Balance Sheet - continued |
30 December 2023 |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
Worcestershire Building Supplies Ltd (Registered number: 01095798) |
Notes to the Financial Statements |
for the year ended 30 December 2023 |
1. | STATUTORY INFORMATION |
Worcestershire Building Supplies Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
GOING CONCERN |
The accounts have been prepared on the assumption that the company is able to carry on business as a going concern, which the directors consider appropriate having regard to the circumstances outlined in the notes to the accounts (See notes 13. Going Concern and 14. Post Balance sheet events) |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Sale of goods |
Revenue from the sale of good is recognised when all of the following conditions are satisfied: |
- the Company has transferred the significant risks and rewards of ownership to the buyer; |
- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- the amount of revenue can me measured reliably; |
- it is probable that the Company 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. |
Tangible fixed assets |
Long-term leasehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Office equipment | - |
The directors have considered the basis for including Freehold land and buildings and Long-term leasehold property in the financial statements and concluded that it would be better represent the company if the revaluation model was adopted for both classes of assets. |
The directors have considered the accounting policy on depreciation of the long leasehold property and consider that a better policy is to write off on a straight line basis over the period of the lease. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Worcestershire Building Supplies Ltd (Registered number: 01095798) |
Notes to the Financial Statements - continued |
for the year ended 30 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable and receivable withing one year, typically trade debtors and creditors, are measured initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence is found, an impairment loss is recognised in the Profit and loss account. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date. |
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Worcestershire Building Supplies Ltd (Registered number: 01095798) |
Notes to the Financial Statements - continued |
for the year ended 30 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Finance costs |
Finance costs are charged to profit and loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | TANGIBLE FIXED ASSETS |
Long-term |
leasehold | Freehold | Plant and |
property | property | machinery |
£ | £ | £ |
COST OR VALUATION |
At 31 December 2022 |
and 30 December 2023 |
DEPRECIATION |
At 31 December 2022 |
Charge for year |
At 30 December 2023 |
NET BOOK VALUE |
At 30 December 2023 |
At 30 December 2022 |
Worcestershire Building Supplies Ltd (Registered number: 01095798) |
Notes to the Financial Statements - continued |
for the year ended 30 December 2023 |
4. | TANGIBLE FIXED ASSETS - continued |
Fixtures |
and | Motor | Office |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 31 December 2022 |
and 30 December 2023 |
DEPRECIATION |
At 31 December 2022 |
Charge for year |
At 30 December 2023 |
NET BOOK VALUE |
At 30 December 2023 |
At 30 December 2022 |
Cost or valuation at 30 December 2023 is represented by: |
Long-term |
leasehold | Freehold | Plant and |
property | property | machinery |
£ | £ | £ |
Valuation in 2022 | 420,443 | 89,056 | - |
Cost | 304,557 | 310,944 | 70,172 |
725,000 | 400,000 | 70,172 |
Fixtures |
and | Motor | Office |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
Valuation in 2022 | - | - | - | 509,499 |
Cost | 11,959 | 96,583 | 60,407 | 854,622 |
11,959 | 96,583 | 60,407 | 1,364,121 |
The long-term leasehold property is included on the balance sheet at a Fair value professional valuation by Fisher German Chartered Surveyors, at 30/12/2022. |
The freehold land an buildings are included on the balance sheet at a Fair value professional valuation by Fisher German Chartered Surveyors, at 30/12/2022. |
See the reserves note in respect of deferred taxation on these revalued properties. |
Worcestershire Building Supplies Ltd (Registered number: 01095798) |
Notes to the Financial Statements - continued |
for the year ended 30 December 2023 |
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Tax |
VAT |
Prepayments and accrued income |
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts |
Other loans | 65,310 | 49,625 |
Hire purchase contracts |
Trade creditors |
Social security and other taxes |
VAT | 23,702 | - |
Other creditors |
Wages control account | 1,848 | - |
Pension control account | 1,027 | - |
Directors' current accounts | 38,050 | - |
Accruals and deferred income |
7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans - 1-2 years |
Bank loans - 2-5 years |
Other loans - 1-2 years |
Other loans - 2-5 years |
Hire purchase contracts |
Directors' loan accounts | 124,159 | 270,464 |
Worcestershire Building Supplies Ltd (Registered number: 01095798) |
Notes to the Financial Statements - continued |
for the year ended 30 December 2023 |
8. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank overdrafts |
Bank loans |
Hire purchase contracts | 33,100 | 40,905 |
Commitments- | Operating lease | 16,782 | 57,059 |
The bank overdraft and loans are secured by charges including a debenture, mortgage and fixed and floating charges over the properties and other assets. |
The hire purchase liabilities are secured on the respective fixed assets. |
There is an operating lease also secured by fixed and floating charges over the properties and other assets. |
As noted in the post balance sheet events note, since the year end the directors have refinanced the company and therefore various of the above charges have been satisfied and replaced with security with alternative lenders. This includes the bank loans and operating leases. |
9. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 588,235 | 288,235 |
During the year £300,000 of additional share capital was issued at par in exchange for a reduction in a long term loan owed to a director. |
10. | RESERVES |
Revaluation |
reserve |
£ |
At 31 December 2022 |
and 30 December 2023 |
Revaluation reserve |
The long-term leasehold property and the freehold land and buildings are included on the balance sheet at Fair value professional valuations by Fisher German chartered surveyors. These revaluations have resulted in a revaluation reserve. |
No adjustment has been made to the revaluation reserve to reflect the deferred taxation in respect of the properties. It is estimated that the corporation tax liability after considering indexation allowances and other taxation losses available would currently be £Nil. |
Worcestershire Building Supplies Ltd (Registered number: 01095798) |
Notes to the Financial Statements - continued |
for the year ended 30 December 2023 |
11. | OTHER FINANCIAL COMMITMENTS |
At the balance sheet date the company had total commitments under operating leases of £230,982 (2022 - £312,059). |
12. | POST BALANCE SHEET EVENTS |
Since the year end the company has completed the sale of the Freehold Property and reorganised operationally such that the company now only operates out of one long leasehold site. |
It has also cancelled certain operating leases and re-financed by taking out invoice finance utilising its trade debtors. The refinancing has resulted in additional charges and a debenture over the company's assets. |
The directors' believe they have taken the necessary steps they believe are appropriate in order that the company can continue to meet its liabilities as they fall due. The directors' continue to explore additional refinancing opportunities to restructure the companies liabilities. |
13. | GOING CONCERN |
The directors have taken the steps they believe are necessary for the company to continue as a going concern, These have included various significant operational and financial restructuring, the most significant aspects for which are detailed above in 'Post balance sheet events'. |