Company registration number 01399387 (England and Wales)
THUMBS-UP (BURY) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
THUMBS-UP (BURY) LIMITED
COMPANY INFORMATION
Director
Mr R J McGuinness
Secretary
Mrs A A Merotto
Company number
01399387
Registered office
Greenfields
Dumers Lane
Bury
BL9 9UT
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
THUMBS-UP (BURY) LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 24
THUMBS-UP (BURY) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -

The director presents the strategic report for the year ended 29 February 2024.

Review of the business

The shareholding, control and management of the company was again in the hands of Richard McGuinness as sole director and controlling party. The company continues to manufacture plastic houseware, food storage, gardenware, domestic storage and brushware for sale to retailers.

Principal risks and uncertainties

The company has acquired assets under hire purchase agreements in respect of which interest is charged at fixed rates. Obligations under these loans and hire purchase agreements are met out of working capital. Although the company had no commitments at the year end it is expected that new machinery in the current year will be acquired under hire purchase agreements. The company maintains good relations with all raw material suppliers and deals with most polypropylene suppliers in order to attempt to mitigate risk. The company is exposed to the usual credit risk, liquidity risk and cash flow associated with selling on credit and manages this through credit control procedures. The company is subject to the volatile nature of the supply and price of its major raw material being polypropylene. Given the size of the company, the director has not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the director are implemented by the company's finance department.

Analysis of development and performance including key performance indicators

The director is pleased with the trading result and the increase in turnover. As the previous two years were difficult trading periods, no dividend is paid or proposed and the company is left with a strong balance sheet with net worth standing at £25.5m and net current assets increased to £8m.

Future developments

The company's relatively new range of food containers and other kitchen utensils continues to perform well in the market. This was the last research and development undertaken.

 

On behalf of the board

Mr R J McGuinness
Director
12 September 2024
THUMBS-UP (BURY) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -

The director presents his annual report and financial statements for the year ended 29 February 2024.

Principal activities

The principal activity of the company continued to be the manufacture and marketing of houseware, food storage, gardenware, domestic storage and brushware.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr R J McGuinness
Auditor

Following the merger of MHA Moore & Smalley with MHA, the company's independent auditor has now become MHA. The auditor, MHA, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the business review, financial risk management and future developments.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr R J McGuinness
Director
12 September 2024
THUMBS-UP (BURY) LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

 

 

The director is 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. He is 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.

THUMBS-UP (BURY) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THUMBS-UP (BURY) LIMITED
- 4 -
Opinion

We have audited the financial statements of Thumbs-Up (Bury) Limited (the 'company') for the year ended 29 February 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 director's 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 director 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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

THUMBS-UP (BURY) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THUMBS-UP (BURY) LIMITED (CONTINUED)
- 5 -

Opinions on other matters prescribed by the Companies Act 2006

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

 

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 director's report.

Matters on which we are required to report by exception

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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:

THUMBS-UP (BURY) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THUMBS-UP (BURY) LIMITED (CONTINUED)
- 6 -

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

Virginia Cooper FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Preston, United Kingdom
19 September 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
THUMBS-UP (BURY) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
37,293,678
30,858,765
Cost of sales
(30,717,210)
(27,119,112)
Gross profit
6,576,468
3,739,653
Distribution costs
(1,367,303)
(1,192,877)
Administrative expenses
(4,020,334)
(3,099,830)
Other operating income
325,134
123,049
Operating profit/(loss)
4
1,513,965
(430,005)
Interest receivable and similar income
7
192,646
33,743
Interest payable and similar expenses
8
(4,788)
(11,301)
Profit/(loss) before taxation
1,701,823
(407,563)
Tax on profit/(loss)
9
(479,745)
82,497
Profit/(loss) for the financial year
1,222,078
(325,066)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

THUMBS-UP (BURY) LIMITED
BALANCE SHEET
AS AT 29 FEBRUARY 2024
29 February 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
17,737,118
17,109,617
Current assets
Stocks
12
4,790,229
2,832,309
Debtors
13
5,404,801
5,326,042
Cash at bank and in hand
3,010,193
6,942,181
13,205,223
15,100,532
Creditors: amounts falling due within one year
14
(5,197,061)
(7,862,938)
Net current assets
8,008,162
7,237,594
Total assets less current liabilities
25,745,280
24,347,211
Provisions for liabilities
Deferred tax liability
16
176,987
-
0
(176,987)
-
Deferred income
17
(31,156)
(32,152)
Net assets
25,537,137
24,315,059
Capital and reserves
Called up share capital
19
90,000
90,000
Revaluation reserve
5,101,224
5,147,111
Capital redemption reserve
10,000
10,000
Profit and loss reserves
20,335,913
19,067,948
Total equity
25,537,137
24,315,059

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 12 September 2024
Mr R J McGuinness
Director
Company registration number 01399387 (England and Wales)
THUMBS-UP (BURY) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 9 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 March 2022
90,000
5,192,998
10,000
19,347,127
24,640,125
Year ended 28 February 2023:
Loss and total comprehensive income
-
-
-
(325,066)
(325,066)
Transfers
-
(45,887)
-
45,887
-
Balance at 28 February 2023
90,000
5,147,111
10,000
19,067,948
24,315,059
Year ended 29 February 2024:
Profit and total comprehensive income
-
-
-
1,222,078
1,222,078
Transfers
-
(45,887)
-
45,887
-
Balance at 29 February 2024
90,000
5,101,224
10,000
20,335,913
25,537,137
THUMBS-UP (BURY) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
22
(2,092,149)
5,265,638
Interest paid
(4,788)
(11,301)
Net cash (outflow)/inflow from operating activities
(2,096,937)
5,254,337
Investing activities
Purchase of tangible fixed assets
(2,360,482)
(681,710)
Proceeds on disposal of tangible fixed assets
395,684
122,053
Interest received
192,646
33,743
Net cash used in investing activities
(1,772,152)
(525,914)
Financing activities
Repayment of bank loans
-
0
(144,553)
Payment of finance leases obligations
(62,899)
(100,081)
Net cash used in financing activities
(62,899)
(244,634)
Net (decrease)/increase in cash and cash equivalents
(3,931,988)
4,483,789
Cash and cash equivalents at beginning of year
6,942,181
2,458,392
Cash and cash equivalents at end of year
3,010,193
6,942,181
THUMBS-UP (BURY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 11 -
1
Accounting policies
Company information

Thumbs-Up (Bury) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Greenfields, Dumers Lane, Bury, BL9 9UT.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under Section 402 of the Companies Act 2006 not to prepare consolidated accounts, in accordance with Section 405(2) as its only component is not material for the purpose of giving a true and fair view. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

At the time of approving the financial statements, the truedirector has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The director is aware of the impact that the current high levels of input costs, and whilst the issues are concerning, they are not just affecting the industry the company operates in and appear almost worldwide. Despite this backdrop the director believes the company has more than sufficient financial strength to mange its way through a sustained period of economic gloom, and management continue to monitor events and take action as required. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, being on despatch of goods.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:

Freehold land and buildings
2% straight line on freehold buildings
Plant and machinery
20% - 50% straight line
Motor vehicles
20% - 33% straight line

Freehold land is not depreciated.

THUMBS-UP (BURY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 12 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Cost is calculated using the first in first out method.

At each reporting date, an assessment is made for impairment due to obsolescence or slow moving stock. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.

Other financial assets

All of the company's financial assets are basic financial assets.

THUMBS-UP (BURY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. Trade creditors are recognised initially at transaction price.

Other financial liabilities

All of the company's financial liabilities are basic financial liabilities.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

THUMBS-UP (BURY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 14 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exceptions:

 

Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains on disposal of fixed assets that have been rolled over into replacement assets, only to the extent that, at the balance sheet date, there is a binding agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged only where the replacement assets are sold.

 

Deferred tax assets are recognised only to the extent that the director considers that it is more likely than not there will be suitable taxable profits from which the future reversal of the underlying timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

 

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

The company operates defined contribution schemes for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

THUMBS-UP (BURY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation and life of tangible fixed assets

Determining both the useful economic life and the residual value of tangible fixed assets requires an estimation of both the length of time that the company expects to use the asset for and the future selling price that the company expects to be achieved for the asset at the end of the useful economic life. These are reviewed annually on an asset by asset basis. There is not expected to be a material difference in the value of the assets given the estimations used.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Sale of goods
37,293,678
30,858,765
THUMBS-UP (BURY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
3
Turnover and other revenue
(Continued)
- 16 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
36,395,392
29,877,203
Europe
898,286
981,562
37,293,678
30,858,765
2024
2023
£
£
Other revenue
Interest income
192,646
33,743
Grants received
996
996
4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(1,369)
3,451
Government grants
(996)
(996)
Fees payable to the company's auditor for the audit of the company's financial statements
39,568
22,958
Depreciation of owned tangible fixed assets
1,526,852
1,942,487
Depreciation of tangible fixed assets held under finance leases
-
82,420
Impairment of owned tangible fixed assets
134,583
-
0
Profit on disposal of tangible fixed assets
(324,138)
(122,053)
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Management, Sales and Administration
20
19
Production and Transport
103
109
Total
123
128
THUMBS-UP (BURY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
5
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
7,321,956
4,171,645
Social security costs
606,620
338,977
Pension costs
118,891
86,770
8,047,467
4,597,392
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
1,794,206
39,838

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
1,794,206
39,838
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
192,646
33,743
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
192,646
33,743
THUMBS-UP (BURY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 18 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
2,384
Other finance costs:
Interest on finance leases and hire purchase contracts
4,788
7,441
Other interest
-
0
1,476
4,788
11,301
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
35,530
-
0
Deferred tax
Origination and reversal of timing differences
435,185
(62,698)
Changes in tax rates
9,030
(19,799)
Total deferred tax
444,215
(82,497)
Total tax charge/(credit)
479,745
(82,497)

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit/(loss) before taxation
1,701,823
(407,563)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 24.49% (2023: 19.00%)
416,807
(77,437)
Tax effect of expenses that are not deductible in determining taxable profit
831
137
Effect of change in corporation tax rate
9,030
(19,799)
Permanent capital allowances in excess of depreciation
-
0
(36,757)
Depreciation on assets not qualifying for tax allowances
56,922
51,359
Superdeduction enhanced relief
(2,481)
-
0
Marginal relief
(1,364)
-
0
Taxation charge/(credit) for the year
479,745
(82,497)
THUMBS-UP (BURY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
9
Taxation
(Continued)
- 19 -

The Chancellor stated his intention to maintain the main rate of corporation tax at 19%. This change to previously announced policy was substantively enacted on 17 March 2020. The Chancellor subsequently announced his intention to increase the headline rate of corporation tax to 25% from 1 April 2023, this policy was substantively enacted on 25 May 2021.

10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£
£
In respect of:
Property, plant and equipment
11
134,583
-
0
Recognised in:
Administrative expenses
134,583
-
11
Tangible fixed assets
Freehold land and buildings
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 March 2023
17,015,560
33,895,060
3,056,351
53,966,971
Additions
-
0
1,567,653
792,829
2,360,482
Disposals
-
0
(1,125,617)
(275,946)
(1,401,563)
At 29 February 2024
17,015,560
34,337,096
3,573,234
54,925,890
Depreciation and impairment
At 1 March 2023
2,344,193
32,054,861
2,458,300
36,857,354
Depreciation charged in the year
272,134
772,914
481,804
1,526,852
Impairment losses
-
0
134,583
-
0
134,583
Eliminated in respect of disposals
-
0
(1,125,617)
(204,400)
(1,330,017)
At 29 February 2024
2,616,327
31,836,741
2,735,704
37,188,772
Carrying amount
At 29 February 2024
14,399,233
2,500,355
837,530
17,737,118
At 28 February 2023
14,671,367
1,840,199
598,051
17,109,617
THUMBS-UP (BURY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
11
Tangible fixed assets
(Continued)
- 20 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Motor vehicles
-
0
50,453

More information on impairment movements in the year is given in note 10.

On transition to FRS 102, a previous valuation of land and buildings was used as deemed cost. This valuation was completed in May 2014 by Messrs. Salisbury Hamer, independent Chartered Surveyors not connected with the company, for a carrying amount of £13,905,000 and was conducted on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

Freehold land and buildings
2024
2023
£
£
Cost
13,064,700
13,064,700
Accumulated depreciation
(3,766,688)
(3,540,442)
Carrying value
9,298,012
9,524,258
12
Stocks
2024
2023
£
£
Raw materials and consumables
2,548,908
1,499,001
Finished goods and goods for resale
2,241,321
1,333,308
4,790,229
2,832,309
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
5,361,934
5,025,894
Prepayments and accrued income
42,551
32,604
5,404,485
5,058,498
THUMBS-UP (BURY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
13
Debtors
(Continued)
- 21 -
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 16)
316
267,544
Total debtors
5,404,801
5,326,042
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
15
-
0
62,899
Trade creditors
2,091,682
5,828,219
Corporation tax
35,530
-
0
Other taxation and social security
140,140
379,683
Other creditors
152,960
1,332,928
Accruals and deferred income
2,776,749
259,209
5,197,061
7,862,938

Finance lease balances are secured over the assets to which they relate.

15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
-
0
67,537
Less: future finance charges
-
0
(4,638)
-
0
62,899

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3-5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

THUMBS-UP (BURY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 22 -
16
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Decelerated capital allowances
176,987
-
-
257,207
Tax losses
-
-
-
9,554
Short term timing differences
-
-
316
783
176,987
-
316
267,544
2024
Movements in the year:
£
Asset at 1 March 2023
(267,544)
Charge to profit or loss
435,185
Effect of change in tax rate - profit or loss
9,030
Liability at 29 February 2024
176,671

As the company has not finalised its capital expenditure plans for the next financial year, it is not possible to clarify the unwinding of the net deferred tax liability over the next 12 months.

17
Deferred income
2024
2023
£
£
Arising from government grants
31,156
32,152
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
118,891
86,770

The company operates a defined contribution pension scheme in respect of its director, the Greenfields (2007) Pension Fund. The company continues to operate a defined contribution scheme, a stakeholder pension scheme and an auto enrolment pension scheme in respect of its employees. The assets of these schemes are held separately from those of the company in independently administered funds.

THUMBS-UP (BURY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 23 -
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
90,000
90,000
90,000
90,000
20
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
559,760
210,406
21
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
2,039,970
43,950
Balances with related parties

The following amounts were outstanding at the reporting end date:

Category
Amounts owed by
Amounts owed to
related parties
related parties
2024
2023
2024
2023
£
£
£
£
Entities over which the entity has control, joint control or significant influence
-
0
-
0
-
0
78,917
Key management personnel
-
0
-
0
-
0
1,254,011
THUMBS-UP (BURY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 24 -
22
Cash generated from operations
2024
2023
£
£
Profit/(loss) for the year after tax
1,222,078
(325,066)
Adjustments for:
Taxation charged/(credited)
479,745
(82,497)
Finance costs
4,788
11,301
Investment income
(192,646)
(33,743)
Gain on disposal of tangible fixed assets
(324,138)
(122,053)
Depreciation and impairment of tangible fixed assets
1,661,435
2,024,907
(Decrease) in deferred income
(996)
(996)
Movements in working capital:
(Increase)/decrease in stocks
(1,957,920)
3,463,155
(Increase) in debtors
(345,987)
(489,428)
(Decrease)/increase in creditors
(2,638,508)
820,058
Cash (absorbed by)/generated from operations
(2,092,149)
5,265,638
23
Analysis of changes in net funds
1 March 2023
Cash flows
29 February 2024
£
£
£
Cash at bank and in hand
6,942,181
(3,931,988)
3,010,193
Obligations under finance leases
(62,899)
62,899
-
6,879,282
(3,869,089)
3,010,193
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