Company registration number 07665021 (England and Wales)
EWI STORE LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
EWI STORE LTD
COMPANY INFORMATION
Directors
J R J Alcock
J P Buczek
L Buczek
N Miles
Secretary
K Adamiec
Mr H Campbell
Company number
07665021
Registered office
Unit 1-2
King Georges Trading Estate
Chessington
United Kingdom
KT9 1TT
Auditor
Richardsons
30 Upper High Street
Thame
Oxfordshire
OX9 3EZ
EWI STORE LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
EWI STORE LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The Directors present their Strategic Report together with the audited financial statements for the year ended 30 June 2024. The comparatives are unaudited.
Review of the business
EWI Store continued to grow its revenue in 2023/24. The company’s revenue for the period increased by 66% to £28.6m. The growth was driven primarily by increased emphasis on energy efficiency and environmental sustainability.
Government incentives and regulations promoting the reduction of carbon emissions, along with a growing awareness of the benefits of EWI, have created a favourable environment for our products.
This, coupled with a new branch in Birmingham has allowed us to grow our customer base and increase trade with existing customers. Our customer base is still a split of B2C and B2B, however the focus on trained installers applying the product has increased the % split of B2B customers within the mix.
Operationally, EWI Store increased the number of staff over the last 12 months to support the continued growth. The company also invested in management systems to support the further scaling of the company.
Future Developments
EWI Store’s strategy is to continue to grow by increasing the number of clients and the volume of business from existing clients. EWI Store is also exploring the addition of further stores in different parts of the UK to help drive demand and become a ‘local’ store for everyone. We are also looking at bringing other products within our existing range to broaden our customer base further.
Principal risks and uncertainties
Management seek to proactively manage risks to the company through ongoing monitoring and risk mitigation.
The risks to EWI Store include:
Financial Marketing Instability
Despite the slightly less than positive global economic outlook, characterised by uncertainties in international markets and potential economic slowdowns, EWI Store remains well-positioned to navigate these challenges.
Our focus on the UK market, which continues to show strong demand for energy-efficient building solutions, enables us to mitigate some of the risks associated with broader economic conditions. We are committed to maintaining a prudent financial strategy that balances growth with resilience, ensuring that we are prepared to adapt to changing economic landscapes.
Increased Compliance within the market
As regulatory bodies implement stricter standards for building materials and energy efficiency, companies in our industry must ensure that their products meet these evolving regulations. While these compliance demands can introduce additional costs and complexities, EWI Store is ready to meet these challenges head-on.
We have invested in robust compliance management systems, and our dedicated team continuously monitors regulatory changes to ensure that our products adhere to the highest standards. Our proactive approach not only mitigates risks but also positions us as a trusted provider in a market that increasingly values quality and compliance.
EWI STORE LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Supply Chain Risk
EWI Store relies on a network of suppliers for raw materials and components. Disruptions due to geopolitical events, natural disasters, or logistical challenges can lead to shortages, increased costs, and production delays. EWI Store recognises the importance of a robust and resilient supply chain to ensure the consistent availability of high-quality materials and products. To effectively manage and mitigate supply chain risks, EWI Store has implemented 2 main strategies:
EWI Store has increased its inventory levels within the UK. By holding more stock locally, the company ensures that it can meet customer demand even in the event of temporary supply chain interruptions, such as delays in shipping or shortages from suppliers. This approach provides a buffer against unforeseen disruptions and helps maintain steady operations and customer satisfaction.
To further strengthen its supply chain resilience, EWI Store has adopted a strategy of diversifying its supplier base. By sourcing materials from multiple suppliers, including both domestic and international partners, the company reduces its dependency on any single supplier or region. This diversification helps mitigate risks associated with supplier-specific issues, such as financial instability, production problems, or geopolitical events that could affect supply.
Key performance indicators
Revenue Growth: 66%
Gross Margin: 41%
J R J Alcock
Director
16 October 2024
EWI STORE LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company continued to be that of sale of quality building products to consumers and businesses alike with a particular focus on external wall insulation (EWI) and render products.
The company currently operates solely in the UK, and we are committed to delivering high-quality materials that enhance energy efficiency and sustainability in buildings across various markets.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £2,731,183. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J R J Alcock
J P Buczek
L Buczek
N Miles
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
J R J Alcock
Director
16 October 2024
EWI STORE LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
EWI STORE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EWI STORE LTD
- 5 -
Opinion
We have audited the financial statements of EWI Store Ltd (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 company's affairs as at 30 June 2024 and of its profit 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.
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.
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.
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
EWI STORE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EWI STORE LTD (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's 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.
- Enquiry of management and those charged with governance around actual and potential litigation and claims.
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
- Reviewing minutes of meetings of those charged with governance.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Other matters which we are required to address
Comparative information in the financial statements is derived from the company's prior period financial statements which were not audited.
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 auditor's 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.
EWI STORE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EWI STORE LTD (CONTINUED)
- 7 -
Bernard Hawkes
Senior Statutory Auditor
For and on behalf of Richardsons
16 October 2024
Chartered Accountants
Statutory Auditor
30 Upper High Street
Thame
Oxfordshire
OX9 3EZ
EWI STORE LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
28,580,824
17,226,993
Cost of sales
(16,874,792)
(11,186,402)
Gross profit
11,706,032
6,040,591
Administrative expenses
(6,860,694)
(4,125,867)
Other operating income
2,315
Operating profit
4
4,847,653
1,914,724
Interest receivable and similar income
8
36,673
Profit before taxation
4,884,326
1,914,724
Tax on profit
9
(1,306,318)
(352,548)
Profit for the financial year
3,578,008
1,562,176
The profit and loss account has been prepared on the basis that all operations are continuing operations.
EWI STORE LTD
BALANCE SHEET
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
150,888
Tangible assets
12
841,624
521,932
992,512
521,932
Current assets
Stocks
14
2,909,671
2,049,178
Debtors
15
2,025,158
1,608,816
Investments
16
1,300
1,300
Cash at bank and in hand
2,851,032
2,201,062
7,787,161
5,860,356
Creditors: amounts falling due within one year
17
(6,464,560)
(5,018,756)
Net current assets
1,322,601
841,600
Total assets less current liabilities
2,315,113
1,363,532
Creditors: amounts falling due after more than one year
18
(266,969)
(324,952)
Provisions for liabilities
Deferred tax liability
19
162,739
(162,739)
-
Net assets
1,885,405
1,038,580
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
1,885,305
1,038,480
Total equity
1,885,405
1,038,580
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 16 October 2024 and are signed on its behalf by:
J R J Alcock
Director
Company registration number 07665021 (England and Wales)
EWI STORE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
100
491,746
491,846
Year ended 30 June 2023:
Profit and total comprehensive income
-
1,562,176
1,562,176
Dividends
10
-
(1,015,442)
(1,015,442)
Balance at 30 June 2023
100
1,038,480
1,038,580
Year ended 30 June 2024:
Profit and total comprehensive income
-
3,578,008
3,578,008
Dividends
10
-
(2,731,183)
(2,731,183)
Balance at 30 June 2024
100
1,885,305
1,885,405
EWI STORE LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
4,620,100
2,899,304
Income taxes paid
(352,548)
(186,769)
Net cash inflow from operating activities
4,267,552
2,712,535
Investing activities
Purchase of intangible assets
(150,888)
Purchase of tangible fixed assets
(731,842)
(478,698)
Proceeds from disposal of tangible fixed assets
6,408
Purchase of investments
(1,300)
Interest received
36,673
Net cash used in investing activities
(839,649)
(479,998)
Financing activities
Repayment of borrowings
(72,629)
13,363
Payment of finance leases obligations
25,879
85,018
Dividends paid
(2,731,183)
(1,015,442)
Net cash used in financing activities
(2,777,933)
(917,061)
Net increase in cash and cash equivalents
649,970
1,315,476
Cash and cash equivalents at beginning of year
2,201,062
885,586
Cash and cash equivalents at end of year
2,851,032
2,201,062
EWI STORE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information
EWI Store Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 1-2, King Georges Trading Estate, Chessington, United Kingdom, KT9 1TT.
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.
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
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
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 costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. 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.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the assets on a straight line basis over their estimated useful economic lives, not to exceed twenty years.
Impairment of intangible assets only reviewed where circumstances indicate that the carrying value of an asset may not be fully recoverable.
EWI STORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
1.5
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:
Leasehold land and buildings
10% Straight line
Plant and equipment
25% Straight line
Fixtures and fittings
25% Straight line
Computers
25% Straight line
Motor vehicles
25% Straight line
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.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
EWI STORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, 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.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
EWI STORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
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.
1.11
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.
EWI STORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
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.
1.13
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 except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
EWI STORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of building materials
28,580,824
17,226,993
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
28,580,824
17,226,993
2024
2023
£
£
Other revenue
Interest income
36,673
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
4,587
Fees payable to the company's auditor for the audit of the company's financial statements
24,000
Depreciation of owned tangible fixed assets
412,150
253,116
(Profit)/loss on disposal of tangible fixed assets
(6,408)
14,119
Operating lease charges
775,561
578,307
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
24,000
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
72
49
EWI STORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
6
Employees
(Continued)
- 18 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,805,074
1,835,433
7
Directors' remuneration
No remuneration was paid to the directors, other than a one off pension contribution of £10,000.
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
36,673
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
36,673
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,143,579
352,548
Deferred tax
Origination and reversal of timing differences
162,739
Total tax charge
1,306,318
352,548
EWI STORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
Taxation
(Continued)
- 19 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
4,884,326
1,914,724
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
1,221,082
478,681
Tax effect of expenses that are not deductible in determining taxable profit
6,630
17,899
Effect of change in corporation tax rate
(87,475)
Permanent capital allowances in excess of depreciation
(187,170)
(129,836)
Depreciation on assets not qualifying for tax allowances
103,037
73,279
Deferred tax adjustments in respect of prior years
162,739
Taxation charge for the year
1,306,318
352,548
10
Dividends
2024
2023
£
£
Interim paid
2,731,183
1,015,442
11
Intangible fixed assets
Mobile App
Website
Total
£
£
£
Cost
At 1 July 2023
Additions
67,223
83,665
150,888
At 30 June 2024
67,223
83,665
150,888
Amortisation and impairment
At 1 July 2023 and 30 June 2024
Carrying amount
At 30 June 2024
67,223
83,665
150,888
At 30 June 2023
EWI STORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
12
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2023
500,532
104,989
85,070
84,457
775,048
Additions
59,971
195,883
7,578
72,692
395,718
731,842
At 30 June 2024
59,971
696,415
112,567
157,762
480,175
1,506,890
Depreciation and impairment
At 1 July 2023
162,832
34,736
26,089
29,459
253,116
Depreciation charged in the year
9,576
150,659
14,387
47,609
189,919
412,150
At 30 June 2024
9,576
313,491
49,123
73,698
219,378
665,266
Carrying amount
At 30 June 2024
50,395
382,924
63,444
84,064
260,797
841,624
At 30 June 2023
337,700
70,253
58,981
54,998
521,932
The net carrying value of tangible fixed assets includes £236,155 (2023: £227,931) in respect of assets held under finance leases or hire purchase contracts.
13
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
1,300
1,300
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
2,909,671
2,049,178
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,487,842
1,172,050
Prepayments and accrued income
259,122
206,543
1,746,964
1,378,593
EWI STORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
15
Debtors
(Continued)
- 21 -
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
278,194
230,223
Total debtors
2,025,158
1,608,816
16
Current asset investments
2024
2023
£
£
Unlisted investments
1,300
1,300
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
131,241
126,635
Other borrowings
79,256
72,629
Trade creditors
4,383,643
3,988,328
Taxation and social security
1,725,942
816,927
Other creditors
10,973
Accruals and deferred income
133,505
14,237
6,464,560
5,018,756
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
146,825
125,552
Other borrowings
120,144
199,400
266,969
324,952
EWI STORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
19
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
162,739
-
2024
Movements in the year:
£
Liability at 1 July 2023
-
Charge to profit or loss
162,739
Liability at 30 June 2024
162,739
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
10,000
10,000
100
100
21
Financial commitments, guarantees and contingent liabilities
HSBC UK Bank PLC currently holds a fixed and floating charge over all assets, where the floating charge covers all the property or undertakings of the company.
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
414,508
337,508
Between two and five years
659,395
702,903
1,073,903
1,040,411
EWI STORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
23
Related party transactions
EWI Pro Insulation Systems Ltd:
The company is connected to EWI Pro Insulation Systems Ltd, a similar company operating under the same management. Where all the directors of EWI Store Ltd are also the directors of EWI Pro Insulation Systems Ltd.
During the year ended 30 June 2024 EWI Pro Insulation Systems Ltd charged EWI Store Ltd material and delivery costs, totalling £10,291,822 (2023: £6,261,934).
During the year ended 30 June 2024 EWI Store Ltd charged EWI Pro Insulation Systems Ltd for the usage of vehicles, totalling £130,742 (2023: 35,992).
At the 30 June 2024 an amount of £2,553,959 (2023: £2,084,797) was owed to EWI Pro Insulation Systems Ltd by EWI Store Ltd.
At the 30 June 2024 an amount of £nil (2023: £2,448) was owed by EWI Pro Insulation Systems Ltd to EWI Store Ltd.
DAision Media Ltd:
The company is connected to DAision Media Ltd as J P Buczek is a director of both companies.
During the year ended 30 June 2024 DAision Media Ltd charged EWI Store Ltd for UK marketing services, totalling £2,040 (2023: £2,500)
Toria Sp z.o.o:
The company is connected to Toria Sp z.o.o as J P Buczek has 100% control over Toria Sp z.o.o.
During the year ended 30 June 2024 Toria Sp z.o.o charged EWI Store Ltd for importing services, totalling £1,529,443 (2023: £1,266,867)
At the 30 June 2024 an amount of £6,536 (2023: £nil) was owed by EWI Store Ltd to Toria Sp z.o.o.
24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
3,578,008
1,562,176
Adjustments for:
Taxation charged
1,306,318
352,548
Investment income
(36,673)
(Gain)/loss on disposal of tangible fixed assets
(6,408)
14,119
Depreciation and impairment of tangible fixed assets
412,150
253,116
Movements in working capital:
Increase in stocks
(860,493)
(735,606)
Increase in debtors
(416,342)
(672,494)
Increase in creditors
643,540
2,125,445
Cash generated from operations
4,620,100
2,899,304
EWI STORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
25
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
2,201,062
649,970
2,851,032
Borrowings excluding overdrafts
(272,029)
72,629
(199,400)
Obligations under finance leases
(252,187)
(25,879)
(278,066)
1,676,846
696,720
2,373,566
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