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Registration number: 10975860

Wellwinch Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 March 2024

Brebners
Chartered Accountants & Statutory Auditor
1 Suffolk Way
Sevenoaks
Kent
TN13 1YL

 

Wellwinch Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Consolidated Statement of Income and Retained Earnings

10

Consolidated Statement of Financial Position

11

Statement of Financial Position

12

Consolidated Statement of Cash Flows

13

Notes to the Financial Statements

14 to 26

 

Wellwinch Limited

Company Information

Directors

E C Bourne

J R C Boucher

C C Reeve

Company secretary

R E Bonner

Registered office

150 Staplehurst Road
Sittingbourne
Kent
ME10 1XS

Auditor

Brebners
Chartered Accountants & Statutory Auditor
1 Suffolk Way
Sevenoaks
Kent
TN13 1YL

 

Wellwinch Limited

Strategic Report for the Year Ended 31 March 2024

The directors present their strategic report for the year ended 31 March 2024.

Principal activity

The principal activity of the group is that of the provision of a comprehensive range of services and products for the protection and preservation of goods and equipment against transit and environmental hazards primarily in the defence and aerospace sectors

Fair review of the business

Turnover for the year was £8,554,545 and profits before tax £1,371,741. The group had net assets at 31 March 2024 amounting to £6,795,507 (2023: £6,440,997). This better-than-expected performance was achieved despite disruptions caused by the suspension of long-term contract production and delays in contract placement throughout the financial year. Short-term contracts secured towards the year-end helped mitigate earlier losses resulting from the contract suspension. To accommodate the increased demand for these short-term contracts, the group utilised its local supply chain resources.

Looking ahead, the current global geopolitical environment has driven an increase in enquiries, some of which have evolved into long-term contracts, strengthening the group's orderbook. Maintaining a stable workforce remains an area of focus for the group as we continue to experience the sector wide competition for suitable candidates.

Raw materials, and wage inflation continue to increase costs, prices are regularly reviewed for future orders and amended to maintain the group’s profit margins where possible.

Thegroup remains committed to investing in its facilities and equipment and is poised to maintain profitability for the foreseeable future.

Principal risks and uncertainties

The directors are constantly reviewing the market and the business to ensure that trading risk is minimised. Going forward the following risks have been identified and mitigations put in place:

• Supply chain shortages continue to create stress within the manufacturing process. The group endeavours to hold three months of stock and engages with new suppliers on a regular basis. Parts are purchased from multiple suppliers where possible.

• Inflationary pressures on materials and energy costs continue to be a risk and will have an impact on trading performance. Multi-year contracts are placed on suppliers with firm prices where possible.

• Staff recruitment and retention is a concern. Employees pay scales are being reviewed to reflect the marketplace; benefits and incentives have been refreshed; training and development opportunities are in place to underpin skill levels within the company. In addition, a partnership with the regional college has been established and a number of recruitment agencies are working alongside the HR team to attract prospective applicants.

• Defence spending depends on a complex mix of political considerations and budgetary constraints which means it may be subject to fluctuations.The group retains a business consultant to look for new business and keep in contact with existing customers for future projects.

• Estimating for future projects over extended periods continues to pose a risk.The group mitigates some of this risk by utilising VOP (Value of Production) formulas and government indices whenever possible.

 

Wellwinch Limited

Strategic Report for the Year Ended 31 March 2024

Non-financial and sustainability information

Social and community issues

Our workforce is drawn from a local area and the directors support their local community through sponsorship of sport and through the fundraising and sponsorship opportunities presented by employees.

We believe that businesses are responsible for achieving good environmental practice and operating in a sustainable manner.

We are therefore committed to reducing our environmental impact and continually improving our environmental performance as an integral and fundamental part of our business strategy and operating methods.

It is our priority to encourage our customers, suppliers, and all business associates to do the same. Not only is this sound commercial sense for all; it is also a matter of delivering on our duty of care towards future generations.

Protecting the environment forms part of the companies ISO 9001-2015 accreditation and is part of the company’s Quality Management System

Financial risk, management objectives and policies

a. Liquidity risk: The company operates within the agreed facilities negotiated with its bankers.

b. Interest rate risk: The company currently has no borrowings.

c. Foreign currency risk: The company mainly trades in sterling. Its trade in Euros is exposed to exchange rate fluctuations, and the policy of the company is not to hedge this risk.

d. Credit risk: The company policy is to assess the credit risk of new customers and factor the information from those credit ratings into future dealings with customers. At the balance sheet date, there were no significant concentrations of credit risk.

The business ensures that it achieves its objectives by reviewing them regularly against the results achieved monthly. Weekly manager meetings and Bi-monthly board meetings are held to discuss its objectives and discuss plans for the business.

Approved by the Board on 18 September 2024 and signed on its behalf by:

.........................................
J R C Boucher
Director

 

Wellwinch Limited

Directors' Report for the Year Ended 31 March 2024

The directors present their report and the for the year ended 31 March 2024.

Directors of the group

The directors who held office during the year were as follows:

E C Bourne

J R C Boucher

C C Reeve

Dividends

During the year interim dividends amounting to £660,060 (2023: £636,120) were paid. No final dividend is proposed.

Information included in the Strategic Report

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

Research and development

The group carries out research and development activities in connection with the development of a bespoke database used to facilitate the trading activities of the group.

Directors' liabilities

The group has purchased Directors’ and Officers’ liability Insurance for Directors and Officers as permitted by section 233 of the Companies Act 2006.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved by the Board on 18 September 2024 and signed on its behalf by:

.........................................
J R C Boucher
Director

 

Wellwinch Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company 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 and 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 company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Wellwinch Limited

Independent Auditor's Report to the Members of
Wellwinch Limited

Opinion

We have audited the financial statements of Wellwinch Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024, which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Statement of Financial Position, Statement of Financial Position, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 the company's affairs as at 31 March 2024 and of the group's profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

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 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 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.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.

Opinion on other matter prescribed by the Companies Act 2006

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

 

Wellwinch Limited

Independent Auditor's Report to the Members of
Wellwinch Limited

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our 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 and the Directors' Report.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities [set out on page 5], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

 

Wellwinch Limited

Independent Auditor's Report to the Members of
Wellwinch Limited

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:

Based on our understanding of the Group and the industry in which it operates, we determined that the principal risks of non-compliance with laws and regulations related to the reporting framework (FRS 102 and the Companies Act 2006) and UK corporate taxation laws, environmental legislation, health and safety legislation, anti-bribery legislation and data protection legislation. These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit.

We understood how the Group is complying with relevant legislation by making enquiries of management and conducting a review of board minutes. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company’s financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management’s incentives and opportunities for fraudulent manipulation of the financial statements.

We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection of any regulatory or legal correspondence; challenging assumptions and judgements made by management; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; and identifying and assessing the effectiveness of controls in place to prevent and detect fraud.

Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.

The primary responsibility for the detection and prevention of fraud rests with those responsible for governance and management. The further removed non-compliance with laws and regulations is from the events reflected in the financial statements, the less likely the auditor will become aware of it.

The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission, misrepresentation or forgery.

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 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.

 

Wellwinch Limited

Independent Auditor's Report to the Members of
Wellwinch Limited

......................................
Martin Widdowson (Senior Statutory Auditor)
For and on behalf of

Brebners, Statutory Auditor
1 Suffolk Way
Sevenoaks
Kent
TN13 1YL

18 September 2024

 

Wellwinch Limited

Consolidated Statement of Income and Retained Earnings for the Year Ended 31 March 2024

Note

2024
£

2023
£

Turnover

3

8,554,545

6,007,503

Cost of sales

 

(5,136,901)

(3,383,655)

Gross profit

 

3,417,644

2,623,848

Administrative expenses

 

(2,148,434)

(1,942,466)

Other operating income

4

3,841

1,895

Operating profit

6

1,273,051

683,277

Other interest receivable and similar income

7

98,690

32,656

 

98,690

32,656

Profit before tax

 

1,371,741

715,933

Taxation

11

(357,171)

115,929

Profit for the financial year

 

1,014,570

831,862

Profit/(loss) attributable to:

 

Owners of the company

 

1,014,570

831,862

Retained earnings brought forward

 

2,015,997

1,820,255

Dividends paid

 

(660,060)

(636,120)

Retained earnings carried forward

 

2,370,507

2,015,997

 

Wellwinch Limited

Consolidated Statement of Financial Position as at 31 March 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

12

1,503,327

1,532,096

Current assets

 

Stocks

14

1,337,434

920,052

Debtors

15

3,496,641

2,323,735

Cash at bank and in hand

 

2,550,257

2,821,686

 

7,384,332

6,065,473

Creditors: Amounts falling due within one year

17

(2,067,960)

(1,140,816)

Net current assets

 

5,316,372

4,924,657

Total assets less current liabilities

 

6,819,699

6,456,753

Provisions for liabilities

18

(24,192)

(15,756)

Net assets

 

6,795,507

6,440,997

Capital and reserves

 

Called up share capital

3,420,000

3,420,000

Capital redemption reserve

855,000

855,000

Revaluation reserve

150,000

150,000

Retained earnings

2,370,507

2,015,997

Equity attributable to owners of the company

 

6,795,507

6,440,997

Shareholders' funds

 

6,795,507

6,440,997

Approved and authorised by the Board on 18 September 2024 and signed on its behalf by:
 

.........................................

J R C Boucher
Director

Company registration number: 10975860

 

Wellwinch Limited

Statement of Financial Position as at 31 March 2024

Note

2024
£

2023
£

Fixed assets

 

Investments

13

3,420,000

3,420,000

Current assets

 

Cash at bank and in hand

 

21

118

Creditors: Amounts falling due within one year

17

(21)

(118)

Net current assets/(liabilities)

 

-

-

Net assets

 

3,420,000

3,420,000

Capital and reserves

 

Called up share capital

3,420,000

3,420,000

Shareholders' funds

 

3,420,000

3,420,000

The company made a profit after tax for the financial year of £660,060 (2023 - £636,120).

Approved and authorised by the Board on 18 September 2024 and signed on its behalf by:
 

.........................................
J R C Boucher
Director

Company registration number: 10975860

 

Wellwinch Limited

Consolidated Statement of Cash Flows for the Year Ended 31 March 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

1,014,570

831,862

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

91,615

89,840

Profit on disposal of tangible assets

5

-

(13,000)

Finance income

7

(98,690)

(32,656)

Income tax expense

11

357,171

(115,929)

 

1,364,666

760,117

Working capital adjustments

 

(Increase)/decrease in stocks

 

(417,382)

83,394

Increase in trade and other debtors

 

(1,172,906)

(942,397)

Increase/(decrease) in trade and other creditors

 

719,342

(85,092)

Cash generated from operations

 

493,720

(183,978)

Income taxes (paid)/received

 

(140,933)

62,603

Net cash flow from operating activities

 

352,787

(121,375)

Cash flows from investing activities

 

Interest received

98,690

32,656

Acquisitions of tangible assets

(62,846)

(71,414)

Proceeds from sale of tangible assets

 

-

13,000

Net cash flows from investing activities

 

35,844

(25,758)

Cash flows from financing activities

 

Dividends paid

(660,060)

(636,120)

Net decrease in cash and cash equivalents

 

(271,429)

(783,253)

Cash and cash equivalents at 1 April

 

2,821,686

3,604,939

Cash and cash equivalents at 31 March

 

2,550,257

2,821,686

 

Wellwinch Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
150 Staplehurst Road
Sittingbourne
Kent
ME10 1XS

The principal activity of the group is that of the provision of a comprehensive range of services and products for the protection and preservation of goods and equipment against transit and environmental hazards primarily in the defence and aerospace sectors

2

Accounting policies

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.

Exemption has been taken under section 408 of the Companies Act 2006 to exclude the income statement of the parent undertaking.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

 

Wellwinch Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March each year.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Income Statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
 

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

The consolidated statement of financial position showed the group had net current assets at 31 March 2024 amounting to £5,316,372 and net total assets amounting to £6,795,507 including cash at bank of £2,550,236.

The group continues to trade profitably and the group's cashflow forecasts demonstrate the group has sufficient working capital for a period of at least 12 months from the approval of the financial statements.

On the basis of above, and after making enquiries, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The group recognises revenue when the amount of revenue can be reliably measured once the equipment manufactured is completed in accordance with the contractual terms and complies with with required specifications and safety standards.

 

Wellwinch Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold property

2% straight line

Property improvements

20% straight line

Plant & machinery

Between 12.5% - 50% on cost

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

 

Wellwinch Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Assets held under hire purchase contracts are capitalised at the lesser of fair value or present value of minimum lease payments in the statement of financial position. The present value of the minimum lease payments is calculated using the interest rate implicit in the lease. A corresponding liability is recognised at the same value in the statement of financial position. The asset is then depreciated over its useful life.

The minimum lease payments are apportioned between the finance charge recognised in the income statement and the reduction of the outstanding liability using the effective interest method. The finance charge in each period is allocated so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Wellwinch Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the group's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods - UK

8,554,545

6,007,503

4

Other operating income

The analysis of the group's other operating income for the year is as follows:

2024
£

2023
£

Miscellaneous other operating income

3,841

1,895

5

Other gains and losses

The analysis of the group's other gains and losses for the year is as follows:

2024
£

2023
£

Gain on disposal of Tangible assets

-

13,000

6

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

91,615

89,840

Foreign exchange losses

495

1,620

Operating lease expense - other

7,748

59,826

Profit on disposal of property, plant and equipment

-

(13,000)

7

Other interest receivable and similar income

2024
£

2023
£

Other finance income

98,690

32,656

 

Wellwinch Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

1,832,704

1,679,725

Social security costs

184,768

176,107

Pension costs, defined contribution scheme

200,171

151,938

Other employee expense

7,745

6,573

2,225,388

2,014,343

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

30

29

Administration and support

23

22

53

51

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

47,112

45,188

Contributions paid to money purchase schemes

2,827

2,711

49,939

47,899

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under defined benefit pension scheme

1

1

 

Wellwinch Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

10

Auditor's remuneration

2024
£

2023
£

Audit of these financial statements

6,000

6,000

Audit of the financial statements of subsidiaries of the company pursuant to legislation

23,000

23,000

29,000

29,000

Other fees to auditors

Taxation compliance services

1,000

1,000

All other assurance services

10,000

13,500

11,000

14,500


 

11

Taxation

Tax charged/(credited) in the consolidated income statement

2024
£

2023
£

Current taxation

UK corporation tax

348,735

(118,496)

Deferred taxation

Arising from origination and reversal of timing differences

8,436

2,567

Tax expense/(receipt) in the income statement

357,171

(115,929)

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

1,371,741

715,933

Corporation tax at standard rate

342,935

136,027

Tax increase from effect of capital allowances and depreciation

4,265

7,030

Tax increase from other short-term timing differences

8,436

2,567

Tax decrease from effect of adjustment in research and development tax credit

-

(259,429)

Tax increase/(decrease) from other tax effects

1,535

(2,124)

Total tax charge/(credit)

357,171

(115,929)

 

Wellwinch Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Deferred tax

Group

Deferred tax assets and liabilities

2024

Liability
£

Accelerated capital allowances

24,192

24,192

2023

Liability
£

Accelerated capital allowances

15,757

15,757

12

Tangible assets

Group

Freehold land and buildings
£

Property improvements
 £

Plant and machinery
£

Total
£

Cost or valuation

At 1 April 2023

1,650,000

44,792

1,182,419

2,877,211

Additions

-

-

62,846

62,846

Disposals

-

-

(52,703)

(52,703)

At 31 March 2024

1,650,000

44,792

1,192,562

2,887,354

Depreciation

At 1 April 2023

296,000

38,035

1,011,080

1,345,115

Charge for the year

19,000

4,864

67,751

91,615

Eliminated on disposal

-

-

(52,703)

(52,703)

At 31 March 2024

315,000

42,899

1,026,128

1,384,027

Carrying amount

At 31 March 2024

1,335,000

1,893

166,434

1,503,327

At 31 March 2023

1,354,000

6,757

171,339

1,532,096

 

Wellwinch Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

The freehold property was last revalued on 9 June 2016

Analysis of tangible fixed assets valued at the date of transition to FRS102 using the deemed cost exemption:

Freehold Property

£

At 31 March 2024

Historic cost equivalent

1,185,000

Revaluation

150,000

Carrying value

1,335,000

£

At 31 March 2023

Historic cost equivalent

1,204,000

Revaluation

150,000

Carrying value

1,354,000

 

Wellwinch Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

13

Investments

Company

2024
£

2023
£

Investments in subsidiaries

3,420,000

3,420,000

Subsidiaries

£

Cost or valuation

At 1 April 2023 and 31 March 2024

3,420,000

Carrying amount

At 31 March 2024

3,420,000

At 31 March 2023

3,420,000

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2024

2023

EPS Logistics Technology Limited

150 Staplehurst Road, Sittingbourne, Kent, ME10 1XS

ordinary

100%

100%

Subsidiary undertakings

EPS Logistics Technology Limited

The principal activity of EPS Logistics Technology Limited is that of the manufacture of a comprehensive range of services and products for the protection and preservation of goods and equipment against transit and environmental hazards primarily in the defence and aerospace sectors.

14

Stocks

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Other inventories

1,337,434

920,052

-

-

 

Wellwinch Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

15

Debtors

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Trade debtors

1,716,617

508,125

-

-

Other debtors

800,000

800,000

-

-

Prepayments

245,038

308,710

-

-

Gross amount due from customers for contract work

734,986

706,900

-

-

3,496,641

2,323,735

-

-

Included within other debtors is an amount of £800,000 (2023: £800,000) falling due after more than one year.

This amount accrues interest of 4% per annum and is repayable to the group in 2026. The group holds a fixed charge over the Trust's freehold property

16

Cash and cash equivalents

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Cash at bank

2,550,257

2,821,686

21

118

17

Creditors

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Due within one year

Trade creditors

946,814

280,728

-

-

Amounts due to group undertakings

-

-

21

118

Social security and other taxes

330,163

215,515

-

-

Other payables

3,884

13,420

-

-

Accruals

438,364

490,220

-

-

Corporation tax liability

348,735

140,933

-

-

2,067,960

1,140,816

21

118

 

Wellwinch Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

18

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 April 2023

15,756

15,756

Additional provisions

8,436

8,436

At 31 March 2024

24,192

24,192

19

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £200,171 (2023 - £151,938).

20

Commitments, Guarantees and Contingencies

Group

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

22,503

34,275

Later than one year and not later than five years

1,341

15,908

23,844

50,183

21

Dividends

Dividends paid

   

2024
£

 

2023
£

Interim dividends of 19.3p (2023: 18.6p) per‹› ordinary share

 

660,060

 

636,120

         
 

Wellwinch Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

22

Related party transactions

Summary of transactions with subsidiaries

Exemption has been taken under FRS 102 paragraph 33.1A not to disclose transactions or amounts falling due with companies that are wholly owned within the group.
 

Summary of transactions with other related parties

During the year, the group paid a fee to a company under the control of a director in respect of professional advice on property matters amounting to £110,000 (2023: £96,730).

The group also paid an amount of £30,000 (2023: £30,000) to companies under the control of a director for the rental of storage facilities.

At 31 March 2024 an amount of £800,000 (2023: £800,000) was due from a Trust in which a director acts as a trustee and is a beneficiary. Interest of £32,000 (2023: £8,065) is payable to the group at a rate of 4% pa.

 

Compensation payable to key management personnel

Key management personnel comprises of the directors of the company plus the directors of the subsidiary undertakings. The amount payable in the year was £456,308 (2023: £354,881).

23

Parent and ultimate parent undertaking

The ultimate controlling party is Mrs S A R Boucher.

24

Non adjusting events after the financial period

Subsequent to 31 March 2024, the group disposed of the trade and assets of an operational division for a consideration of £274,000.