40 false false false false true false false false false false false true false false false false false false No description of principal activity 2023-02-01 Sage Accounts Production Advanced 2023 - FRS102_2023 1,050,122 1,200,293 44,484 795 45,279 24,277 4,537 28,814 16,465 20,207 13,269 2,013 15,282 xbrli:pure xbrli:shares iso4217:GBP 04350856 2023-02-01 2024-01-31 04350856 2024-01-31 04350856 2023-01-31 04350856 2022-02-01 2023-01-31 04350856 2023-01-31 04350856 2022-01-31 04350856 core:PatentsTrademarksLicencesConcessionsSimilar 2023-02-01 2024-01-31 04350856 core:FurnitureFittings 2023-02-01 2024-01-31 04350856 bus:RegisteredOffice 2023-02-01 2024-01-31 04350856 bus:OrdinaryShareClass1 2023-02-01 2024-01-31 04350856 bus:OrdinaryShareClass2 2023-02-01 2024-01-31 04350856 bus:LeadAgentIfApplicable 2023-02-01 2024-01-31 04350856 bus:Director1 2023-02-01 2024-01-31 04350856 bus:Director4 2023-02-01 2024-01-31 04350856 bus:Director6 2023-02-01 2024-01-31 04350856 bus:Director7 2023-02-01 2024-01-31 04350856 bus:Director8 2023-02-01 2024-01-31 04350856 bus:Director9 2023-02-01 2024-01-31 04350856 bus:Director10 2023-02-01 2024-01-31 04350856 core:WithinOneYear 2024-01-31 04350856 core:WithinOneYear 2023-01-31 04350856 core:PatentsTrademarksLicencesConcessionsSimilar 2023-01-31 04350856 core:PatentsTrademarksLicencesConcessionsSimilar 2024-01-31 04350856 core:FurnitureFittings 2023-01-31 04350856 core:FurnitureFittings 2024-01-31 04350856 core:DeferredTaxation 2023-02-01 2024-01-31 04350856 core:UKTax 2023-02-01 2024-01-31 04350856 core:UKTax 2022-02-01 2023-01-31 04350856 core:RetainedEarningsAccumulatedLosses 2023-02-01 2024-01-31 04350856 core:RetainedEarningsAccumulatedLosses 2022-02-01 2023-01-31 04350856 bus:AllOrdinaryShares 2023-02-01 2024-01-31 04350856 bus:AllOrdinaryShares 2022-02-01 2023-01-31 04350856 core:RetainedEarningsAccumulatedLosses 2023-01-31 04350856 core:RetainedEarningsAccumulatedLosses 2022-01-31 04350856 core:RetainedEarningsAccumulatedLosses 2024-01-31 04350856 core:RetainedEarningsAccumulatedLosses 2023-01-31 04350856 core:ShareCapital 2024-01-31 04350856 core:ShareCapital 2023-01-31 04350856 core:BetweenOneFiveYears 2024-01-31 04350856 core:BetweenOneFiveYears 2023-01-31 04350856 core:MoreThanFiveYears 2024-01-31 04350856 core:PatentsTrademarksLicencesConcessionsSimilar 2023-01-31 04350856 core:AcceleratedTaxDepreciationDeferredTax 2024-01-31 04350856 core:AcceleratedTaxDepreciationDeferredTax 2023-01-31 04350856 core:FurnitureFittings 2023-01-31 04350856 core:DeferredTaxation 2023-01-31 04350856 core:DeferredTaxation 2024-01-31 04350856 bus:LeadAgentIfApplicable 2022-02-01 2023-01-31 04350856 bus:HighestPaidDirector 2023-02-01 2024-01-31 04350856 bus:HighestPaidDirector 2022-02-01 2023-01-31 04350856 bus:MediumEntities 2023-02-01 2024-01-31 04350856 bus:Audited 2023-02-01 2024-01-31 04350856 bus:Medium-sizedCompaniesRegimeForAccounts 2023-02-01 2024-01-31 04350856 bus:PrivateLimitedCompanyLtd 2023-02-01 2024-01-31 04350856 bus:FullAccounts 2023-02-01 2024-01-31 04350856 bus:AllOrdinaryShares 2024-01-31 04350856 bus:AllOrdinaryShares 2023-01-31 04350856 bus:OrdinaryShareClass1 2024-01-31 04350856 bus:OrdinaryShareClass1 2023-01-31 04350856 bus:OrdinaryShareClass2 2024-01-31 04350856 bus:OrdinaryShareClass2 2023-01-31 04350856 core:ComputerEquipment 2023-02-01 2024-01-31 04350856 core:ComputerEquipment 2023-01-31 04350856 core:ComputerEquipment 2024-01-31
COMPANY REGISTRATION NUMBER: 04350856
Hygiene Supplies Direct Limited
Financial Statements
31 January 2024
Hygiene Supplies Direct Limited
Financial Statements
Year Ended 31 January 2024
Contents
Pages
Strategic report
1 to 2
Directors' report
3 to 4
Independent auditor's report to the members
5 to 8
Statement of income and retained earnings
9
Statement of financial position
10 to 11
Statement of cash flows
12
Notes to the financial statements
13 to 19
Hygiene Supplies Direct Limited
Strategic Report
Year Ended 31 January 2024
The directors presents their strategic report for the year ended 31st January 2024. Review of the business The principal activity of the company continued to be the supply and distribution of washroom & cleaning products, heating, cooling and other small household appliances via various online retail platforms to both the consumer and B2B markets. The year ended 31st January 2024 has been challenging due to the continued effect of the cost of living crisis which has squeezed household incomes significantly. The focus on energy-saving products continues to work in our favour due to the nature of our product base, although consumers are generally now more cautious in their spending habits due to their limited disposable income availability. During this period, we have traded profitably and have continued to protect our cash reserves, to ensure that our business remains strong and can meet all it's liabilities.
Principal risks and uncertainties
The directors consider the risks to the business both during the monthly management meetings and also during informal regular meetings where various different aspects of the business are discussed. The principal risks and uncertainties are considered to be as follows:-
Competitive risk
We are constantly monitoring our product ranges to ensure we are providing the best quality and technologically up-to date products to our consumers at the best possible price. The company is actively working product development on a constant basis. We are working on adding to our current outlets for sales to ensure the long-term growth of the business. We are currently selling mainly within the UK but are actively exploring the possibility of building sales relationships outside of the UK.
Credit risk
In order to manage our risk in this area, credit checks are done on all potential credit customers and existing companies are monitored for any changes.
Liquidity risk
The Directors manage and control the company's cashflows on a monthly basis to ensure all obligations are met and payments are made on time. The company does not currently require any outside finance and has self-funded its growth over the years.
Currency risk
A significant proportion of our products are imported from abroad so the company has to deal with foreign exchange fluctuations. This is managed by working with Foreign Exchange Brokers to facilitate payments and the limited use of forward contracts.
Key performance indicators
Turnover decreased 16.46% to £14,193,935 (2023 £16,990,884). Gross profit amounted to £4,990,353 (2023 £5,303,506) at a gross profit margin of 35.2% (2023 31.2%). Operating profit amounted to £1,387,979 (2023 £1,481,843). Net assets at 31st January 2024 were £1,860,449 (2023 £1,535,327).
Future developments
There is still uncertainty over the UK economy and the risks to growth remain significant. The company expects that the cost-of-living crisis will continue to have an effect on consumer spending in the coming years but, because of the product base we have, the company expects turnover to be maintained in the coming 12 months. We are working closely with our suppliers to grow our market share with both our existing and new products in the coming 12 months.
This report was approved by the board of directors on 30 October 2024 and signed on behalf of the board by:
G A Newton
Director
Registered office:
Ground Floor
Tayson House
Methley Road
Castleford
West Yorkshire
WF10 1PA
Hygiene Supplies Direct Limited
Directors' Report
Year Ended 31 January 2024
The directors present their report and the financial statements of the company for the year ended 31 January 2024 .
Directors
The directors who served the company during the year were as follows:
G A Newton
S A Day
M Tempest
A Catton
O Newton
S Newton
A Garnett
Dividends
Particulars of recommended dividends are detailed in note 11 to the financial statements.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, 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). 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 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 judgments 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 30 October 2024 and signed on behalf of the board by:
G A Newton
Director
Registered office:
Ground Floor
Tayson House
Methley Road
Castleford
West Yorkshire
WF10 1PA
Hygiene Supplies Direct Limited
Independent Auditor's Report to the Members of Hygiene Supplies Direct Limited
Year Ended 31 January 2024
Opinion
We have audited the financial statements of Hygiene Supplies Direct Limited (the 'company') for the year ended 31 January 2024 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 FRS 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 31 January 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 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.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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. Other matters The financial statements of Hygiene Supplies Direct Limited for the previous year ended 31st January 2022 were unaudited.
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 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.
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 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, 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: - The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - We identified the laws and regulations applicable to the company through discussions with management; - We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including UK Companies legislation, tax legislation, employment legislation, environmental and health and safety legislation; - We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by; - Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; - Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and - The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. To address the risk of fraud through management bias and override of controls, we: - Performed analytical procedures to identify unusual or unexpected relationships; - Tested journal entries and other adjustments to identify unusual transactions; - Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; - Investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations; - Reading minutes of meetings of those charged with governance; - Enquiring of management as to actual or potential litigation claims; - Reviewing correspondence with HMRC, and the company's legal advisors. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we become aware of it. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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 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.
Michael Flanagan
(Senior Statutory Auditor)
For and on behalf of
Holmes Beaumont & Holroyd Limited
Chartered Accountants & statutory auditor
15 Ropergate End
Pontefract
West Yorkshire
WF8 1JT
31 October 2024
Hygiene Supplies Direct Limited
Statement of Income and Retained Earnings
Year Ended 31 January 2024
2024
2023
Note
£
£
Turnover
4
14,193,935
16,990,884
Cost of sales
( 9,203,582)
( 11,687,378)
-------------
-------------
Gross profit
4,990,353
5,303,506
Administrative expenses
( 3,610,762)
( 3,821,663)
------------
------------
Operating profit
5
1,379,591
1,481,843
Other interest receivable and similar income
9
8,388
------------
------------
Profit before taxation
1,387,979
1,481,843
Tax on profit
10
( 337,857)
( 281,550)
------------
------------
Profit for the financial year and total comprehensive income
1,050,122
1,200,293
------------
------------
Dividends paid and payable
11
( 725,000)
( 1,000,000)
Retained earnings at the start of the year
1,535,227
1,334,934
------------
------------
Retained earnings at the end of the year
1,860,349
1,535,227
------------
------------
All the activities of the company are from continuing operations.
Hygiene Supplies Direct Limited
Statement of Financial Position
31 January 2024
2024
2023
Note
£
£
£
Fixed assets
Intangible assets
12
16,465
20,207
Tangible assets
13
61,128
69,836
--------
--------
77,593
90,043
Current assets
Stocks
14
3,857,720
3,241,923
Debtors
15
1,018,663
1,105,628
Cash at bank and in hand
240,149
730,327
------------
------------
5,116,532
5,077,878
Creditors: amounts falling due within one year
16
( 3,318,394)
( 3,619,325)
------------
------------
Net current assets
1,798,138
1,458,553
------------
------------
Total assets less current liabilities
1,875,731
1,548,596
Provisions
Taxation including deferred tax
17
( 15,282)
( 13,269)
------------
------------
Net assets
1,860,449
1,535,327
------------
------------
Hygiene Supplies Direct Limited
Statement of Financial Position (continued)
31 January 2024
2024
2023
Note
£
£
£
Capital and reserves
Called up share capital
20
100
100
Profit and loss account
21
1,860,349
1,535,227
------------
------------
Shareholders funds
1,860,449
1,535,327
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 30 October 2024 , and are signed on behalf of the board by:
G A Newton
Director
Company registration number: 04350856
Hygiene Supplies Direct Limited
Statement of Cash Flows
Year Ended 31 January 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
1,050,122
1,200,293
Adjustments for:
Depreciation of tangible assets
11,999
13,555
Amortisation of intangible assets
4,537
4,457
Other interest receivable and similar income
( 8,388)
Loss on disposal of tangible assets
1,940
2,380
Tax on profit
337,857
281,550
Accrued expenses
95,532
47,836
Changes in:
Stocks
( 615,797)
155,364
Trade and other debtors
86,965
( 298,985)
Trade and other creditors
( 314,998)
( 33,315)
------------
------------
Cash generated from operations
649,769
1,373,135
Interest received
8,388
Tax paid
( 414,143)
( 202,009)
---------
------------
Net cash from operating activities
244,014
1,171,126
---------
------------
Cash flows from investing activities
Purchase of tangible assets
( 5,231)
( 14,414)
Proceeds from sale of tangible assets
( 1)
Purchase of intangible assets
( 795)
( 2,280)
---------
------------
Net cash used in investing activities
( 6,026)
( 16,695)
---------
------------
Cash flows from financing activities
Proceeds from borrowings
( 4,189)
5,874
Proceeds from loans from group undertakings
1,023
244,112
Dividends paid
( 725,000)
( 1,000,000)
---------
------------
Net cash used in financing activities
( 728,166)
( 750,014)
---------
------------
Net (decrease)/increase in cash and cash equivalents
( 490,178)
404,417
Cash and cash equivalents at beginning of year
730,327
325,910
---------
---------
Cash and cash equivalents at end of year
240,149
730,327
---------
---------
Hygiene Supplies Direct Limited
Notes to the Financial Statements
Year Ended 31 January 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Ground Floor, Tayson House, Methley Road, Castleford, West Yorkshire, WF10 1PA.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Revenue in respect of turnover is recognised when goods have been delivered to customers such that risks and rewards of ownership have transferred to them.
Income tax
Taxation represents the sum of tax currently payable and deferred tax. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. Deferred tax is recognised on all timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realised.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Intangible assets
Patents, trademarks and licences are stated at cost.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Patents, trademarks and licences
-
10% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures and fittings
-
15% reducing balance
Computer equipment
-
20% reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Financial instruments
Basic financial instruments are recognised at amortised cost. The company holds the following financial assets and liabilities: Cash Short-term trade and other debtors and creditors Cash in the balance sheet comprises cash at banks and in hand and short term deposits with an original maturity date of three months or less. Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account before operating profit.
Defined contribution plans
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are recognised in the income statement when due.
4. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
14,193,935
16,990,884
-------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Amortisation of intangible assets
4,537
4,457
Depreciation of tangible assets
11,999
13,555
Loss on disposal of tangible assets
1,940
2,380
Impairment of trade debtors
27,916
3,118
Foreign exchange differences
( 6,667)
( 1,826)
--------
--------
6. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
12,000
11,250
--------
--------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Distribution staff
12
10
Administrative staff
20
21
Management staff
8
8
--------
--------
40
39
--------
--------
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
935,491
774,633
Social security costs
90,821
75,805
Other pension costs
26,023
20,029
------------
---------
1,052,335
870,467
------------
---------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
468,000
394,942
---------
---------
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
£
£
Aggregate remuneration
80,000
70,000
--------
--------
9. Other interest receivable and similar income
2024
2023
£
£
Other interest receivable and similar income
8,388
--------
--------
10. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
335,694
281,839
Adjustments in respect of prior periods
150
---------
---------
Total current tax
335,844
281,839
---------
---------
Deferred tax:
Origination and reversal of timing differences
2,013
( 289)
---------
---------
Tax on profit
337,857
281,550
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2023: the same as) the standard rate of corporation tax in the UK of 24.03 % (2023: 19 %).
2024
2023
£
£
Profit on ordinary activities before taxation
1,387,979
1,481,843
------------
------------
Profit on ordinary activities by rate of tax
333,532
281,550
Adjustment to tax charge in respect of prior periods
150
Effect of expenses not deductible for tax purposes
69
Effect of capital allowances and depreciation
4,106
------------
------------
Tax on profit
337,857
281,550
------------
------------
11. Dividends
2024
2023
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
725,000
1,000,000
---------
------------
12. Intangible assets
Patents, trademarks and licences
£
Cost
At 1 February 2023
44,484
Additions
795
--------
At 31 January 2024
45,279
--------
Amortisation
At 1 February 2023
24,277
Charge for the year
4,537
--------
At 31 January 2024
28,814
--------
Carrying amount
At 31 January 2024
16,465
--------
At 31 January 2023
20,207
--------
13. Tangible assets
Fixtures and fittings
Equipment
Total
£
£
£
Cost
At 1 February 2023
102,629
38,004
140,633
Additions
5,231
5,231
Disposals
( 765)
( 4,377)
( 5,142)
---------
--------
---------
At 31 January 2024
101,864
38,858
140,722
---------
--------
---------
Depreciation
At 1 February 2023
48,943
21,854
70,797
Charge for the year
8,004
3,995
11,999
Disposals
( 379)
( 2,823)
( 3,202)
---------
--------
---------
At 31 January 2024
56,568
23,026
79,594
---------
--------
---------
Carrying amount
At 31 January 2024
45,296
15,832
61,128
---------
--------
---------
At 31 January 2023
53,686
16,150
69,836
---------
--------
---------
14. Stocks
2024
2023
£
£
Raw materials and consumables
3,857,720
3,241,923
------------
------------
15. Debtors
2024
2023
£
£
Trade debtors
774,353
839,845
Prepayments and accrued income
244,310
265,783
------------
------------
1,018,663
1,105,628
------------
------------
16. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,135,856
1,098,542
Amounts owed to group undertakings
1,364,338
1,363,315
Accruals and deferred income
486,695
391,163
Corporation tax
111,776
190,075
Social security and other taxes
215,769
568,081
Director loan accounts
2,183
6,372
Other creditors
1,777
1,777
------------
------------
3,318,394
3,619,325
------------
------------
17. Provisions
Deferred tax (note 18)
£
At 1 February 2023
13,269
Additions
2,013
--------
At 31 January 2024
15,282
--------
18. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 17)
15,282
13,269
--------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
15,282
13,269
--------
--------
19. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 26,023 (2023: £ 20,029 ).
20. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary A shares of £ 1 each
70
70
70
70
Ordinary B shares of £ 1 each
30
30
30
30
--------
--------
--------
--------
100
100
100
100
--------
--------
--------
--------
21. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
22. Analysis of changes in net debt
At 1 Feb 2023
Cash flows
At 31 Jan 2024
£
£
£
Cash at bank and in hand
730,327
(490,178)
240,149
Debt due within one year
(1,369,687)
3,166
(1,366,521)
------------
---------
------------
( 639,360)
( 487,012)
( 1,126,372)
------------
---------
------------
23. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
132,689
115,119
Later than 1 year and not later than 5 years
330,590
83,797
Later than 5 years
108,699
---------
---------
571,978
198,916
---------
---------
24. Directors' advances, credits and guarantees
No advances were made to any director of the company during the year and no amounts in respect of advances to directors were outstanding at the year end. The company has not provided any guarantees on behalf of its directors during the year.
25. Controlling party
The company is a wholly owned subsidiary of Newton Holdings Yorkshire Limited.