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Registered number: 00971152












D.R. WAKEFIELD & COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

 

D.R. WAKEFIELD & COMPANY LIMITED

CONTENTS



Page
Company Information
 
1
Group Strategic Report
 
2 - 4
Directors' Report
 
5 - 6
Directors' Responsibilities Statement
 
7
Independent Auditor's Report
 
8 - 11
Consolidated Profit and Loss Account
 
12
Consolidated Balance Sheet
 
13
Company Balance Sheet
 
14 - 15
Consolidated Statement of Changes in Equity
 
16
Company Statement of Changes in Equity
 
17
Consolidated Statement of Cash Flows
 
18 - 19
Consolidated Analysis of Net Debt
 
20
Notes to the Financial Statements
 
21 - 42


 

D.R. WAKEFIELD & COMPANY LIMITED
 
COMPANY INFORMATION


Directors
Terrence James Martin Sparling 
Simon Derrick Wakefield 




Registered number
00971152



Registered office
Thompson House

42-44 Dolben Street

London

SE1 0UQ






Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH








Page 1

 

D.R. WAKEFIELD & COMPANY LIMITED
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

Introduction
 
The directors present their strategic report for D.R. Wakefield & Company Limited (the "Company") and its
subsidiaries (the "Group") for the year eneded 31 Januaury 2024.

Business review
 
The directors report a satisfactory year of trading considering the various challenges associated with import/export of a tropical agricultural product. The results for the year were adversely affected by the recognition of profits and losses on expired commodity hedges (£1.5m year on year.) The Company recognises profit and losses on these hedge instruments upon expiry of the future contract but only recognises the associated profit or loss on the physical contract once shipped and invoiced. This creates timing difference in the reporting of the full life cycle costs of the trade, leading to volatility in the Profit & Loss Account. In addition, coffee sales are often agreed twelve months in advance. The tightening of monetary policy in the previous twelve months incurred an underestimation of cost of carry adversely impacting reported trading margins.
Our European business showed signs of further growth in line with our medium-term strategy. 

Principal risks and uncertainties
 
The Group's results are sensitive to fluctuations in the world coffee price and cash price differentials, which are driven by economic factors affecting world supply and demand for coffee, as well as the general economic and political climate in the countries in which the company trades.
These exposures are mitigated by entering into commodity derivative instruments. The Group uses these instruments exclusively to hedge these underlying risks in their physical commodity merchanting business. The hedge effectiveness and reconciliation of these instruments against the underlying risks are continually monitored.
The Group's financial statements are reported in pounds sterling and those results may be affected by fluctuations in exchange rates. A substantial proportion of the Group’s imports and some customer business is conducted in US dollars and Euros. The Group buys foreign currency forward to mitigate the currency risk associated with these exposures.
The Group is also exposed to liquidity risk including the risk that borrowing facilities are not available to meet cash requirements and the risk that financial assets cannot be readily converted to cash without loss of value. Failure to manage liquidity risk could have a material impact upon the Group's cash flow, balance sheet and financial performance. The Group manages liquidity risk by ensuring that adequate bank facilities are maintained, supported by the provision of suitable cash flow forecasting and regular management information to the bank.
The Group is exposed to credit risk arising from sales that would be recognised if customers fail or are otherwise unable to meet their payment obligations. The Group manages its risk by analysing the financial position of customers prior to trading with them and by adopting rigorous credit control management including credit reference agencies. This risk is further mitigated with the use of credit insurance cover.
The Group continues to work closely with producers, customers, logistics partners, certification bodies and our banks, many of whom we have worked with for many years, to ensure that business risks are closely managed to facilitate growth and recovery.

Financial key performance indicators
 
The key performance indicators used to manage the business are volumes of coffee sold, gross profit margins achieved, and operating profit achieved as a proportion of revenue.

Page 2

 

D.R. WAKEFIELD & COMPANY LIMITED

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

2024
2023
Gross profit margin

8.6%

8.6%

Operating profit as a proportion of revenue

2.9%

4.1%


Other performance indicators include the sufficiency of the Group's bank facility headroom and the adequacy of coffee price hedging commitments and forward foreign currency requirements. 

Going Concern
 
The Group have been able to rely on a strong balance sheet from retained profits and support from their long-standing relationship with HSBC during this period and continue to liaise closely with the Bank on working capital facilities to meet the Group’s trading activities as exogenous factors continue to influence liquidity requirements. 
Looking forward the directors have prepared cash flow forecasts which consider alternative scenarios and assumptions to analyse the Company's and Group's headroom under the current bank facilities to ensure bank facilities are adequate and loan covenants are complied with.
The directors believe the Company and the Group have adequate resources based on these forecasts and projections to meet the ongoing cash requirements of the business for a minimum of 12 months from the date of signing the financial statements. For this reason, the financial statements have been prepared on a going concern basis which assumes the realisation of assets and liabilities in the normal course of business.

Directors' statement of compliance with duty to promote the success of the Group
 
Section 172 of the companies act 2006 requires a director of a company to act in the way they consider, in good faith, would most likely promote the success of the Company for the benefit of its members. In doing this, section 172 requires a director to give regard, amongst other matters, to the:
Likely consequences of any decisions in the long term
The directors believe they have acted in good faith with respect to the long-term consequences of decisions on the Company. In 2024, adequate provisions for replacing information technology systems were paramount when deciding dividend policy. This investment will allow the Company to grow profitably into the future without incurring uncompetitive transaction costs. 
Interests of the Company's employees
Commodity businesses succeed or fail basis the performance of their people. The Company consider their employees as their strongest asset and invest and nurture employees to meet current and forecast future challenges. This includes formal and informal communication on the Company’s performance and major business decisions. 
Need to foster the Company's business relationships with suppliers, customer and others
Commodity supply chains require considerable collaboration to be successful. The Company relies heavily on such collaboration which can be best demonstrated by the many long term supply and customer relationships. The directors consider they act fairly in their role as facilitators of the trade often bringing customers and suppliers together to discuss quality and any challenges to the supply of coffee.
Impact of the Company's operations on the community and environment
The Company and it’s directors consider the impact of their decisions on the wider community and environment. In 2024 the Company continued to source commodities that met the environmental, societal and sustainability requirements of their customers, which often go beyond local laws and standard industry norms.
Desirability of the Company maintaining a reputation for high standard of business conduct
The Company’s directors continued to strive to maintain the high standards of business practices associated with DRW. In 2024 this included membership of B-CORP which externally validates the code of conduct associated with well run companies.  
Need to act fairly as between members of the Company
 
Page 3

 

D.R. WAKEFIELD & COMPANY LIMITED

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

After weighing up all relevant factors, the directors consider which course of action best enables delivery of our strategy in the long-term interests of the Company, taking into consideration the effect on stakeholders. In doing so, the directors consider they act fairly between the Company’s members.
The directors of the Company are aware of their responsibilities to promote the success of the Company in accordance with Section 172 of the Companies Act 2006 and consider they have acted in accordance with these standards. 
 


This report was approved by the board and signed on its behalf.



S D Wakefield
Chairman

Date: 30 October 2024

Page 4

 

D.R. WAKEFIELD & COMPANY LIMITED

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

The directors present their report and the financial statements for the year ended 31 January 2024.

Principal activity

The principal activity of the Group in the year under review was that of a coffee merchant.

Results and dividends

The loss for the year, after taxation, amounted to £31,089 (2023 - profit £2,247,293).

During the year dividends of £163,167 (2023 - £1,193,000) were paid or declared. 

Directors

The directors who served during the year were:
D R Wakefield 
K S Wakefield (resigned 31 January 2024)
N R Thompson (resigned 31 May 2023)
S D Wakefield     
                                                                                                                                                       
T J M Sparling was appointed a director 01 February 2024.
 
Future developments

The directors intend to continue to develop the business with the aim to generate an acceptable profit return in existing and new markets based upon our key philosophies of the Group's commitment to the Fairtrade, Organic and Rainforest Alliance principles and developing long-term, fair relationships with our coffee producers. 

Engagement with suppliers, customers and others

The nature of the Group's business is long-term supplier and customer relationship management. It is at the heart of our business strategy and forms the very basis of our existence. The Group regularly introduces suppliers to custmomers to foster better understanding of the products traded and the supply chain of coffee from origin to cup. The Group considers the importance of an inclusive supply chain stategy is fundamental to the success of initiatives such as Fair Trade, Organic and Rainforest Alliance certification programmes. The views of our supply chain partners are reflected regularly in representations by senior trade and management of the Group in meetings. 

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group's greenhouse gas emissions and energy consumption are as follows: 


2024
2023

Emissions resulting from activities for which the Group is responsible involving the combustion of gas or consumption of fuel for the purposes of transport (in tonnes of CO2 equivalent)
27,466 Kwh (estimated) = 5.59t CO2e
25,620 kWh (estimation) = 4.7t CO2e

Emissions resulting from the purchase of the electricity by the Group for its own use, including the purposes of transport (in tonnes of CO2 equivalent)
17,721 kWh = 3.7t CO2e
16,820 kWh = 3.9t CO2e

Energy consumed from activities for which the Group is responsible involving the combustion of gas, or the consumption of fuel for the purposes of transport, and the annual quantity of energy consumed resulting from the purchase of electricity by the Group for its own use, including for the purposes of transport, in kWh
9.3t CO2e
8.6t CO2e

The Group used Greenhouse Gas Protocol in calculating the above carbon emission.

The Group has used the emissions to employee ratio which is 985 kWh per employee to calculate the intensity
Page 5

 

D.R. WAKEFIELD & COMPANY LIMITED

DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

ratio. 

Matters covered in the Group strategic report

As permitted by s414c(11) of the Companies Act 2006, the directors have elected to disclose information,
required to be in the Directors' report by Schedule 7 of the 'Large and Medium-sized Companies and Groups
(Accounts and Reports) Regulations 2008', in the Strategic report.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end which require disclosure in the financial statements. 

Auditor

The auditor, Blick Rothenberg Audit LLP, was appointed during the year end will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





Simon Derrick Wakefield
Director

Date: 30 October 2024

Page 6

 

D.R. WAKEFIELD & COMPANY LIMITED
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 7

 

D.R. WAKEFIELD & COMPANY LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF D.R. WAKEFIELD & COMPANY LIMITED
 FOR THE YEAR ENDED 31 JANUARY 2024

Opinion


We have audited the financial statements of D.R. Wakefield & Company Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 January 2024, which comprise the Consolidated profit and loss account, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 January 2024 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 8

 

D.R. WAKEFIELD & COMPANY LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF D.R. WAKEFIELD & COMPANY LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.


We have nothing to report in respect of the following matters 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 7, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 9

 

D.R. WAKEFIELD & COMPANY LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF D.R. WAKEFIELD & COMPANY LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

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 Group 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:
 
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 Group and the parent Company through discussions with directors and other management, and from our commercial knowledge and experience of the Group's sector;
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 Group and parent Company, including the Companies Act 2006, taxation legislation and environmental 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 Group and parent 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; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
 
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested a sample of journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and
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:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HM Revenue and Customs and relevant regulators.


Our risk assessment findings for both non-compliance with laws and regulations and the susceptibility of the Group’s financial statements to material misstatement arising from fraud were communicated with component auditors so that they could include them within their own risk assessment procedures and include, where appropriate audit procedures in response to such risks in their work.

 
Page 10

 

D.R. WAKEFIELD & COMPANY LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF D.R. WAKEFIELD & COMPANY LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other 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.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.


Use of our report
 

This report is made solely to the parent Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the parent 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 parent Company and the parent Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Jacqueline Oakes (Senior Statutory Auditor)
  
for and on behalf of
Blick Rothenberg Audit LLP
 
Chartered Accountants
Statutory Auditor
  
16 Great Queen Street
Covent Garden
WC2B 5AH

 
Date: 
30 October 2024
Page 11

 

D.R. WAKEFIELD & COMPANY LIMITED
 
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024

2024
2023
Note
£
£

  

Turnover
 4 
81,522,690
87,658,594

Cost of sales
  
(74,560,930)
(80,146,083)

Gross profit
  
6,961,760
7,512,511

Administrative expenses
  
(4,655,312)
(3,985,997)

Other operating income
 5 
63,042
67,559

Operating profit
 6 
2,369,490
3,594,073

Fair value movement
 7 
(659,908)
(152,484)

Interest receivable and similar income
 11 
23,793
23,705

Interest payable and similar expenses
 12 
(1,569,488)
(835,893)

Profit before tax
  
163,887
2,629,401

Tax on profit
 13 
(194,976)
(382,108)

(Loss)/profit for the financial year
  
(31,089)
2,247,293

There are no items of other comprehensive income for either the year or the prior year other than the (loss)/profit for the year. Accordingly, no statement of other comprehensive income has been presented.

The notes on pages 21 to 42 form part of these financial statements.

Page 12


 
REGISTERED NUMBER:00971152
D.R. WAKEFIELD & COMPANY LIMITED

CONSOLIDATED BALANCE SHEET
AS AT 31 JANUARY 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 15 
160,965
264,648

Tangible assets
 16 
91,547
65,903

  
252,512
330,551

Current assets
  

Stocks
 18 
22,114,046
27,992,508

Debtors: amounts falling due within one year
 19 
10,891,927
11,442,193

Cash at bank and in hand
 20 
1,722,726
9,603,086

  
34,728,699
49,037,787

Creditors: amounts falling due within one year
 21 
(25,847,898)
(39,961,645)

Net current assets
  
 
 
8,880,801
 
 
9,076,142

Total assets less current liabilities
  
9,133,313
9,406,693

Provisions for liabilities
  

Deferred taxation
 23 
-
(79,124)

  
 
 
-
 
 
(79,124)

Net assets
  
9,133,313
9,327,569


Capital and reserves
  

Called up share capital 
 24 
100,000
100,000

Profit and loss account
 25 
9,033,313
9,227,569

Equity attributable to owners of the parent Company
  
9,133,313
9,327,569

Total equity
  
9,133,313
9,327,569


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Simon Derrick Wakefield
Director

Date: 30 October 2024

The notes on pages 21 to 42 form part of these financial statements.

Page 13


 
REGISTERED NUMBER:00971152
D.R. WAKEFIELD & COMPANY LIMITED

COMPANY BALANCE SHEET
AS AT 31 JANUARY 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 15 
160,965
264,648

Tangible assets
 16 
79,974
58,359

Investments
 17 
87
87

  
241,026
323,094

Current assets
  

Stocks
 18 
14,230,892
17,935,057

Debtors: amounts falling due within one year
 19 
11,419,848
11,593,040

Cash at bank and in hand
 20 
1,193,824
9,581,364

  
26,844,564
39,109,461

Creditors: amounts falling due within one year
 21 
(18,418,865)
(31,489,703)

Net current assets
  
 
 
8,425,699
 
 
7,619,758

Total assets less current liabilities
  
8,666,725
7,942,852

  

Provisions for liabilities
  

Deferred taxation
 23 
(9,077)
(98,757)

  
 
 
(9,077)
 
 
(98,757)

Net assets
  
8,657,648
7,844,095


Capital and reserves
  

Called up share capital 
 24 
100,000
100,000

Profit and loss account brought forward
  
7,744,095
7,084,393

Profit for the year
  
976,720
1,852,702

Other changes in the profit and loss account

  

(163,167)
(1,193,000)

Profit and loss account carried forward
 25 
8,557,648
7,744,095

Total Equity
  
8,657,648
7,844,095


Page 14


 
REGISTERED NUMBER:00971152
D.R. WAKEFIELD & COMPANY LIMITED
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 JANUARY 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


Simon Derrick Wakefield
Director

Date: 30 October 2024

The notes on pages 21 to 42 form part of these financial statements.

Page 15

 

D.R. WAKEFIELD & COMPANY LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 February 2023
100,000
9,227,569
9,327,569


Comprehensive income for the year

Loss for the year
-
(31,089)
(31,089)
Total comprehensive income for the year
-
(31,089)
(31,089)


Contributions by and distributions to owners

Dividends: Equity capital
-
(163,167)
(163,167)


Total transactions with owners
-
(163,167)
(163,167)


At 31 January 2024
100,000
9,033,313
9,133,313


The notes on pages 21 to 42 form part of these financial statements.


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 February 2022
100,000
8,173,276
8,273,276


Comprehensive income for the year

Profit for the year
-
2,247,293
2,247,293
Total comprehensive income for the year
-
2,247,293
2,247,293


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,193,000)
(1,193,000)


Total transactions with owners
-
(1,193,000)
(1,193,000)


At 31 January 2023
100,000
9,227,569
9,327,569


The notes on pages 21 to 42 form part of these financial statements.

Page 16

 

D.R. WAKEFIELD & COMPANY LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 February 2022
100,000
7,084,393
7,184,393


Comprehensive income for the year

Profit for the year
-
1,852,702
1,852,702


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,193,000)
(1,193,000)



At 1 February 2023
100,000
7,744,095
7,844,095


Comprehensive income for the year

Profit for the year
-
976,720
976,720


Contributions by and distributions to owners

Dividends: Equity capital
-
(163,167)
(163,167)


Total transactions with owners
-
(163,167)
(163,167)


At 31 January 2024
100,000
8,557,648
8,657,648


The notes on pages 21 to 42 form part of these financial statements.

Page 17

 

D.R. WAKEFIELD & COMPANY LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024

2024
2023
£
£

Cash flows from operating activities

(Loss)/Profit for the financial year
(31,089)
2,247,293

Adjustments for:

Amortisation of intangible assets
107,395
101,462

Depreciation of tangible assets
50,663
55,702

Interest paid
1,537,470
835,893

Interest received
(23,793)
(23,705)

Taxation charge
194,976
382,108

Decrease/(increase) in stocks
5,878,462
(8,917,956)

Decrease/(increase) in debtors
467,793
(3,614,864)

(Decrease)/increase in creditors
(6,034,708)
2,429,532

Net fair value losses recognised in P&L
672,476
152,484

Corporation tax (paid)
(567,395)
(425,082)

Net cash generated from operating activities

2,252,250
(6,777,133)


Cash flows from investing activities

Purchase of intangible fixed assets
(3,712)
(69,589)

Purchase of tangible fixed assets
(76,307)
(40,532)

Sale of tangible fixed assets
-
2,859

Interest received
23,793
23,705

Net cash from investing activities

(56,226)
(83,557)

Cash flows from financing activities

New loans
1,290,959
11,922,433

Dividends paid
(163,167)
(1,193,000)

Interest paid
(1,537,470)
(804,614)

Net cash used in financing activities
(409,678)
9,924,819

Net increase in cash and cash equivalents
1,786,346
3,064,129
Page 18

 

D.R. WAKEFIELD & COMPANY LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024


2024
2023

£
£



Cash and cash equivalents at beginning of year
(1,308,886)
(4,691,943)

Foreign exchange gains and losses
(140,032)
318,928

Cash and cash equivalents at the end of year
337,428
(1,308,886)


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,722,726
9,603,086

Bank overdrafts
(1,385,298)
(10,911,972)

337,428
(1,308,886)


The notes on pages 21 to 42 form part of these financial statements.

Page 19

 

D.R. WAKEFIELD & COMPANY LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JANUARY 2024




At 1 February 2023
Cash flows
At 31 January 2024
£

£

£

Cash at bank and in hand

9,603,086

(7,880,360)

1,722,726

Bank overdrafts

(10,911,972)

9,526,674

(1,385,298)

Bank loans

(15,654,956)

(1,290,959)

(16,945,915)


(16,963,842)
355,355
(16,608,487)

The notes on pages 21 to 42 form part of these financial statements.

Page 20

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

1.


General information

D.R. Wakefield & Company Limited is a private company, limited by shares, domiciled and incorporated in England and Wales (registered number: 00971152). The registered office address is Thompson House, 42-44 Dolben Street, London, SE1 0UQ.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements.

The following principal accounting policies have been applied:

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102:

• Section 3 Financial Statement Presentation paragraph 3.17(d) (inclusion of statement of cash
flows);
• Section 7 Statement of Cash Flows (inclusion of statement of cash flows);
• Section 11 Financial Instruments paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv),
11.48(b) and 11.48(c) (disclosures relating to financial instruments);
• Section 26 Share based payments (disclosure of share based payments);
• Section 33 Related Party Disclosures paragraph 33.7 (disclosures of key management personnel
compensation).

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 21

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.3

Going concern

The Company and Group have continued to experience a period of sustained high global coffee prices as well as organic growth of the business. Such drivers increase the Company's and Group's working capital requirements. The Group have been able to rely on a strong balance sheet from retained profits and support from their long-standing relationship with HSBC during this period and continue to liaise closely with the Bank on wokring capital facilities to meet the Group's trading activities as exogenous factors continue to influence liquidity requirements.

Looking forward the directors have prepares cash flow forecasts which consider alternative scenarios and assumptions to analyse the Company's and Group's headroom under the current bank facilities to ensure bank facilities are adequate and loan covenants are complied with.

The directors believe the Company and the Group have adequate resources based on these forecasts and projections to meet the ongoing cash requirements of the business for a minimum of 12 months from the date of signing the financial statements. For this reason, the financial statements have been prepared on a going concern basis which assumes the realisation of assets and liabilities in the normal course of business.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is Sterling (£).

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Profit and Loss Account within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'administrative expenses'.
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.



Page 22

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.8

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.9

Finance costs

Finance costs are charged to profit or 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.

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 23

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.11

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme).

 
2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Page 24

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Short-term leasehold property
-
Over the life of the lease
Fixtures and fittings
-
4 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.14

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed 10 years.

Amortisation is provided on the following bases

Software licences                               -  5 years

Page 25

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.15

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Stocks include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.19

Financial instruments

The Group 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 Group's Balance Sheet when the Group 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Page 26

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)


2.19
Financial instruments (continued)


Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are
Page 27

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)


2.19
Financial instruments (continued)

subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Offsetting of financial assets and financial liabilities

 
2.20

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.21

Share capital

Ordinary shares are classified as equity.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the Group's accounting policies, the directors are required to make judgements, estimates and assumptions about the acarrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical expierence and other factors that are considered to be relevant.
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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
In the course of perparing the Group's financial statements, the judgements that may have the most significant effect on the amounts recognised in the financial statements are those involving estimations.       
Bad debt impairment provision

At 31 January 2024, net trade debtors amounted to £10,672,478 (2023 - £10,948,104). A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable. At 31 January 2024 the impairment provision was £170,771 (2023:£131,735).

Stock provision

At 31 January 2024, net total stock amounted to £22,114,046 (2023 - £27,992,508). Slow moving and damaged stock is monitored during the year. A line by line review of stock provisions is carried out at the year-end, and stock which is sold at the lower of cost and net realisable value is identified and put forwards for provision. Whilst every attempt is made to ensure that stock provisions are as accurate as possible, there remains a risk that the provisions do not match the ultimate unrealised value of stock held. At 31 January 2024 the stock provision was £142,992 (2023: £142,992). 

Page 28

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

4.


Turnover

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
48,487,988
47,649,969

Rest of Europe
28,203,006
21,218,761

Rest of the world
4,831,696
18,789,864

81,522,690
87,658,594



5.


Other operating income

2024
2023
£
£

Other operating income
43,654
48,390

Insurance claims receivable
19,388
19,169

63,042
67,559



6.


Operating profit

The operating profit is stated after charging / (crediting):

2024
2023
£
£

Exchange differences
119,951
317,852

Other operating lease rentals
159,958
145,668

Stock provision expense / (release)
-
(21,567)

Bad debt provision expense
40,781
55,661


7.


Gain/(Loss) on fair value of financial instruments

2024
2023
£
£
Loss on forward currency contracts

(532,442)

(480,075)

(Loss)/Gain on futures contracts

(127,466)

327,591

(659,908)

(152,484)


Page 29

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

8.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor and its associates:


2024
2023
£
£

Fees payable to the Company's auditor and its associates for the audit of the consolidated and parent Company's financial statements
80,000
76,565

Fees payable to the Company's auditor and its associates in respect of:

Taxation compliance services
22,500
11,810

Preparation of the accounts
10,500
6,378


The comparative figures represent amounts payable to the previous auditor.





9.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
2,257,397
2,000,998
2,015,818
1,839,578

Social security costs
237,806
219,723
213,198
216,622

Cost of defined contribution scheme
98,327
90,403
98,327
90,403

2,593,530
2,311,124
2,327,343
2,146,603


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Employees and Directors
33
26
30
25

Page 30

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

10.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
179,008
309,658

Group contributions to defined contribution pension schemes
13,360
10,500

Compensation for loss of office as director
117,427
-

309,795
320,158


During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £167,100 (2023 - £300,090).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £9,360 (2023 - £10,500).


11.


Interest receivable

2024
2023
£
£


Other interest receivable
23,793
23,705

23,793
23,705


12.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
898,465
509,390

Foreign exchange loss on currency deposits and loans
32,018
31,279

Invoice financing charges
639,005
295,224

1,569,488
835,893

Page 31

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

13.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
272,935
580,553

Adjustments in respect of previous periods
53,768
(52,660)


326,703
527,893


Total current tax
326,703
527,893

Deferred tax


Origination and reversal of timing differences
(131,727)
(145,785)

Total deferred tax
(131,727)
(145,785)


Tax on profit
194,976
382,108

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 24.03% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
163,887
2,629,401


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 24.03% (2023 - 19%)
39,382
499,586

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
20,029
3,364

Capital allowances for year in excess of depreciation
1,565
(4,646)

Adjustments to tax charge in respect of prior periods
53,768
(52,660)

Adjustments to tax charge in respect of prior periods for deferred tax
39
-

Remeasurement of deferred tax for changes in tax rates
(5,148)
(34,746)

Movement in deferred tax not recognised
-
(1,189)

Non-taxable income
85,341
(27,601)

Total tax charge for the year
194,976
382,108

Page 32

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

14.


Dividends

2024
2023
£
£


Interim dividends paid
163,167
1,193,000


15.


Intangible assets

Group and Company





Software licences

£



Cost


At 1 February 2023
426,794


Additions
3,712



At 31 January 2024

430,506



Amortisation


At 1 February 2023
162,146


Charge for the year on owned assets
107,395



At 31 January 2024

269,541



Net book value



At 31 January 2024
160,965



At 31 January 2023
264,648



Page 33

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

16.


Tangible fixed assets

Group






Short-term leasehold property
Plant and machinery
Total

£
£
£



Cost or valuation


At 1 February 2023
129,399
235,265
364,664


Additions
16,740
59,567
76,307



At 31 January 2024

146,139
294,832
440,971



Depreciation


At 1 February 2023
112,390
186,371
298,761


Charge for the year on owned assets
19,470
31,193
50,663



At 31 January 2024

131,860
217,564
349,424



Net book value



At 31 January 2024
14,279
77,268
91,547



At 31 January 2023
17,009
48,894
65,903

Page 34

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

           16.Tangible fixed assets (continued)


Company






Short-term leasehold property
Plant and machinery
Total

£
£
£

Cost or valuation


At 1 February 2023
129,399
220,542
349,941


Additions
16,740
51,745
68,485



At 31 January 2024

146,139
272,287
418,426



Depreciation


At 1 February 2023
112,390
179,192
291,582


Charge for the year on owned assets
19,470
27,400
46,870



At 31 January 2024

131,860
206,592
338,452



Net book value



At 31 January 2024
14,279
65,695
79,974



At 31 January 2023
17,009
41,350
58,359






Page 35

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

17.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 February 2023
87



At 31 January 2024
87




Subsidiary undertaking
The following was a subsidiary undertaking of the Company:
Name                                                            Registered office             Class of shares       Holding
 
D.R. Wakefield (Europe) & Co Limited              Commercial House,           Ordinary                   100%
                                                                      Millbank Business
                                                                      Park, Lucan, Dublin,
                                                                      Ireland



18.


Stocks

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Finished goods and goods for resale
22,114,046
27,992,508
14,230,892
17,935,057


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 36

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

19.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
10,672,478
10,948,104
7,478,560
7,678,570

Amounts owed by group undertakings
-
-
3,832,881
3,450,691

Other debtors
88,824
87,751
41,803
83,977

Prepayments and accrued income
78,022
243,718
66,604
217,182

Deferred taxation
52,603
-
-
-

Financial instruments
-
162,620
-
162,620

10,891,927
11,442,193
11,419,848
11,593,040


Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
Group trade debtors are stated net of £170,771 (2023:£131,737) impairment provision.
Company trade debtors are stated net of £120,962 (2023:£87,628) impairment provision.


20.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
1,722,726
9,603,086
1,193,824
9,581,364

Less: bank overdrafts
(1,385,298)
(10,911,972)
(877,618)
(9,202,784)

337,428
(1,308,886)
316,206
378,580


Page 37

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

21.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank overdrafts
1,385,298
10,911,972
877,618
9,202,784

Bank loans
16,945,915
15,654,956
12,430,064
12,943,335

Trade creditors
1,323,861
4,824,656
779,841
3,044,918

Corporation tax
191,859
405,007
191,859
266,622

Other taxation and social security
115,167
124,078
59,166
109,584

Other creditors
1,098,156
1,768,937
1,098,156
1,765,448

Accruals and deferred income
4,339,284
6,193,505
2,817,369
4,157,012

Financial instruments
448,358
78,534
164,792
-

25,847,898
39,961,645
18,418,865
31,489,703



The following liabilities were secured:
Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans and overdrafts
18,331,213
26,566,928
15,107,682
22,146,119

Bank loans and overdrafts are secured by a fixed and floating charge over the Company's assets and are charged with an interest rate of 2.4% per annum.

Some trade creditors have reserved title to goods supplied to the Group. Since the extent to which such creditors are effectively secured depends on a number of factors and conditions, some of which are not readily determinable, it is not possible to indicate how much of the above amount is secured under reservation of title. 

Page 38

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

22.


Financial instruments

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
-
162,620
-
162,620


Financial liabilities

Derivative financial instruments measured at fair value through profit or loss
(164,792)
(78,534)
164,792
-


Forward foreign currency contracts


The Group enters into forward currency contracts to mitigate the exchange rate risk for certain foreign currency payables. At 31 January 2024, the outstanding contracts all mature within 12 months (2023: 12 months) of the year end. 
The forward currency contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key inputs used in valuing the derivatives are the forward exchange rates for GBP, USD ad EUR. The fair value of the forward foreign currency contracts at 31 January 2024 was a loss of £357,710 (2023: gain of £519,941). 


Coffee futures contracts

The Group enters into futures contracts to mitigate the price risk associated with the sale and purchase of coffee. At 31 January 2024 the outstanding contracts all mature within 12 months (2023: 12 months) of the year end.
The coffee futures are measured at fair value, which is determined using valuation techniques that untilise observable inputs. The key inputs used in valuing the derivatives are the forward rates for the contracts. The fair value of the coffee futures as at 31 January 2024 was a loss of £302,198 (2023: loss of £672,425). 


23.


Deferred taxation


Group



2024


£






At beginning of year
(79,124)


Charged to profit or loss
131,727



At end of year
52,603

Page 39

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
 
23.Deferred taxation (continued)

Company


2024


£






At beginning of year
(98,757)


Charged to profit or loss
89,680



At end of year
(9,077)

The deferred taxation balance is made up as follows:

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Accelerated capital allowances
(60,119)
(76,528)
(56,349)
(76,528)

Short term timing differences
112,722
(2,596)
47,272
(22,229)

52,603
(79,124)
(9,077)
(98,757)


Fixed asset timing differences are expected to reverse in line with each corresponding fixed asset class and the classes depreciation rates, as noted in the accounting policies.
Short term timing differences are expected to reverse over the next 12 months. 


24.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



562,000 (2023 - 562,000) Ordinary A shares of £0.10 each
56,200
56,200
68,000 (2023 - 68,000) Ordinary B shares of £0.10 each
6,800
6,800
160,000 (2023 - 160,000) Ordinary C shares of £0.10 each
16,000
16,000
160,000 (2023 - 160,000) Ordinary D shares of £0.10 each
16,000
16,000
50,000 (2023 - 50,000) Ordinary F shares of £0.10 each
5,000
5,000

100,000

100,000



25.


Reserves

Profit and loss account

This reserve relates to the cumulative retained earnings less amounts distributed to shareholders. 

Page 40

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

26.


Share-based payments

On 29 August 2018, 1000 options were granted to an executive director over Ordinary G shares. The options have been granted under the Enterprise Management Incentive ("EMI") scheme offerred by HM Revenue and Customs. 
The option holder has the option to acquire the shares at an exercise price of £0.10 per ordinary G share. 
The option shall vest and be capable of exercise on the event of an exit event in full.
The options outstanding at 31 January 2024 were nil (2023 - 1000).
No charge to the Statement of Comphrensive Income has been made, as the options can only be executed on an intended sale of the Company which was not considered probable.


27.


Pension commitments

The Group operates a defined contribution pension scheme. The pension cost charge represents contributions payable by the Group to the fund and amounted to £98,327 (2023 - £90,403). Contributions of £914 (2023 - overpaid £123) were payable to the fund at the balance sheet date.


28.


Commitments under operating leases

At 31 January 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Not later than 1 year
121,527
121,527
121,500
121,527

Later than 1 year and not later than 5 years
146,813
351,000
146,813
351,000

268,340
472,527
268,313
472,527


29.


Related party transactions

The company has taken advantage of the exemption contained in FRS 102 section 33 "Related Party Disclosures" from disclosing transactions with entities which are a wholly-owned part of the group. 

At the year end the Company owed £1,066,867 (2023: £1,735,069) to the shareholders in respect of unpaid dividends. This amount is included in other creditors on the Balance Sheet.

During the year close family members of the officers of the Company received remuneration of £15,000 (2023: £32,000).

Key management personnel are considered to be the directors of the Group and as such the exemption contained in FRS 102 33.7A has been taken to disclose their remuneration in note 10. £29,396 (2023: £40,097) of social security costs were incurred during the year for key management personnel. 

Page 41

 

D.R. WAKEFIELD & COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

30.


Controlling party

The ultimate controlling party is consdered to be Mrs S D Wakefield by virtue of this shareholding in the Company. 
 
Page 42