WARWICK DEVELOPMENT (NORTH WEST) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Company Registration No. 03530106 (England and Wales)
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
COMPANY INFORMATION
Directors
Mr B Johnson
Mr G Johnson
Company number
03530106
Registered office
36 Howe Street
Liverpool
L20 8NG
Auditor
DSG Audit
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Fair review of the business
The company's principal activity is the fabrication of UPVC windows and doors. There have not been any significant changes in the company's principal activities in the year under review. The directors are not aware, at the date of this report, of any likely major changes in the company's principal activities in the year under review. The directors are not aware, at the date of this report, of any likely major changes in the company's principal activities in the forthcoming year.
The results for the year show turnover of £11,158,428 an increase of £149,644 on the previous year and a pre tax profit of £1,309,721, a decrease of £290,972 on the previous year.
The Directors have continued implementing new ideas and are still implementing strategic directional change across the group. Using various platforms management sought to promote and publicise the company and the group, their sustainable energy efficient products and their social values within the city region. Focus was aimed towards the Housing Association market, an area which previously represented only a small percentage of company and group turnover.
In the prior year, on 31 March 2023 the trade and assets of fellow subsidiary companies Warwick Aluminium Limited and Warwick UPVC Sliders Limited were hived-across into Warwick Development (North West) Limited.
Principal risks and uncertainties
Management continually monitor the key risks facing the company together with assessing the controls used for managing these risks. The board of directors formally reviews and documents the principal risks facing the business at least manually.
The principal risks and uncertainties facing the company are as follows:-
Cash flow - the cash flow consequences of customers delaying payment for goods supplied. The board continue to devote management time to the management of the debtors' ledger.
Costs pressure - supplier price pressure and the company's ability to pass supply chain price increases onto its customers.
The company acknowledges the importance of maintaining close relationships with its key customers in order to be able to identify the early signs of potential financial difficulties.
Loss of key personnel - this would present significant operational difficulties for the company. Management seek to ensure that key personnel are appropriately remunerated to ensure that good performance is recognised.
There continues to be significant uncertainty over the impact of Brexit on the wider economy and whilst the company's sales are made in the UK some of the key materials do originate from Europe. Management has continued regular communication with the company's key suppliers to try to mitigate this risk.
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Key performance indicators
Management use a range of performance measures to monitor and manage the business. In addition to the profit margin, turnover and net margin referred to above, management also use the following performance measures:-
- Current ratio: has increased from at 4.0 as at 31 March 2023 to 4.3 at 31 March 2024.
- Debtor days: have increased from 26 as at 31 March 2023 to 38 at 31 March 2024.
- Creditor days: have increased from 38 days at 31 March 2023 to 47 days at 31 March 2024.
- Total assets / total liabilities ratio has remained stable at 4 at both year ends.
Future developments
We continue into 24/25 with the ambition to grow the commercial arm of the business, we have had a great previous year profiling the business and making a significant impact with our social value. These values resonate with all our customer’s but none more so than the Registered providers and social housing companies that see Warwick as a perfect partner to deliver on their supply chain. Last year was a challenging one for retail and subsequently trade due to economic pressures including high interest rates affecting mortgages and therefore disposable income, Inflation and interest rates are now under more control and should kick start consumer spending again. We envisage a stronger sales forecast therefore this year.
Mr G Johnson
Director
Date: 31 October 2024
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of the fabrication of UPVC windows and doors.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr B Johnson
Mr G Johnson
Future developments
The directors plan to seek new opportunities arising from the national lockdown whilst ensuring that the level of margins attained are sufficient to cover running costs.
Auditor
DSG resigned as auditor on 11 September 2024. DSG Audit were appointed as auditor to the company on 11 September 2024 and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Matters covered in the 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 likely future developments of the business and financial risk management including information on price risk, credit risk and liquidity risk.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr G Johnson
Director
31 October 2024
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF WARWICK DEVELOPMENT (NORTH WEST) LIMITED
- 5 -
Opinion
We have audited the financial statements of Warwick Development (North West) Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF WARWICK DEVELOPMENT (NORTH WEST) LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
Those laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, company law, tax and pensions legislation, and distributable profits legislation.
Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include health and safety regulations, anti-bribery and anti-corruption laws and compliance with tax legislation.
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF WARWICK DEVELOPMENT (NORTH WEST) LIMITED (CONTINUED)
- 7 -
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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 Auditors' Report.
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.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Angela Harrison BA FCA
Senior Statutory Auditor
For and on behalf of DSG Audit
31 October 2024
Chartered Accountants
Statutory Auditor
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
11,158,428
11,008,784
Cost of sales
(7,289,339)
(7,508,728)
Gross profit
3,869,089
3,500,056
Administrative expenses
(2,563,360)
(2,367,717)
Other operating income
470,892
Operating profit
4
1,305,729
1,603,231
Interest receivable and similar income
6
19,770
7,942
Interest payable and similar expenses
7
(15,778)
(10,210)
Profit before taxation
1,309,721
1,600,963
Tax on profit
10
(375,979)
(232,028)
Profit for the financial year
933,742
1,368,935
There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.
There was no other comprehensive income for 2024 (2023: £NIL).
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
644,461
774,558
Current assets
Stocks
12
511,562
551,996
Debtors
13
6,091,660
4,376,964
Cash at bank and in hand
2,174,801
2,447,233
8,778,023
7,376,193
Creditors: amounts falling due within one year
14
(2,055,203)
(1,825,398)
Net current assets
6,722,820
5,550,795
Total assets less current liabilities
7,367,281
6,325,353
Creditors: amounts falling due after more than one year
15
(221,892)
(113,706)
Provisions for liabilities
Deferred tax liability
17
183,180
183,180
(183,180)
(183,180)
Net assets
6,962,209
6,028,467
Capital and reserves
Called up share capital
19
100
100
Profit and loss reserves
20
6,962,109
6,028,367
Total equity
6,962,209
6,028,467
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 31 October 2024 and are signed on its behalf by:
Mr G Johnson
Director
Company registration number 03530106 (England and Wales)
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
100
4,959,432
4,959,532
Year ended 31 March 2023:
Profit and total comprehensive income
-
1,368,935
1,368,935
Dividends
9
-
(300,000)
(300,000)
Balance at 31 March 2023
100
6,028,367
6,028,467
Year ended 31 March 2024:
Profit and total comprehensive income
-
933,742
933,742
Balance at 31 March 2024
100
6,962,109
6,962,209
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
1
Accounting policies
Company information
Warwick Development (North West) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 36 Howe Street, Liverpool, L20 8NG.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
The financial statements of the company are consolidated in the financial statements of Warwick Acquisitions Limited. These consolidated financial statements are available from its registered office, 36 Howe Street, Liverpool, L20 8NG.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
1.3
Turnover
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company 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.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Profit on contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.
1.4
Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment. 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.
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.
Depreciation is provided on the following basis:
Plant & machinery
15/25% straight-line
Fixtures & fittings
15% straight-line
Office equipment
25/50% straight-line
Motor vehicles
25% straight-line
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 the Statement of Comprehensive Income.
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
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 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. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
1.8
Financial instruments
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Finance costs are charged to the Statement of Comprehensive Income 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.
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forwards to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Balance Sheet date.
1.12
Retirement benefits
Defined contribution pension plan
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contribution into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income 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 company in independently administered funds.
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.
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.14
Government grants
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Statement of Comprehensive Income at the same rate as the depreciation on the assets to which the grant relates. the deferred element of grant is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
There are no estimates and judgements that are considered to have a significant risk of causing material adjustment to the carrying amounts off assets and liabilities within the next financial year.
3
Turnover and other revenue
The total turnover of the company for the year has been derived from its principal activity wholly undertaken in England and Wales.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(1,716)
Fees payable to the company's auditor for the audit of the company's financial statements
7,350
7,000
Depreciation of owned tangible fixed assets
152,325
115,535
Depreciation of tangible fixed assets held under finance leases
49,500
97,533
Loss on disposal of tangible fixed assets
7,514
-
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Production
62
66
Sales
2
2
Administration
42
43
Total
106
111
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,972,018
2,995,353
Social security costs
110,830
109,214
Pension costs
22,815
23,478
3,105,663
3,128,045
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
19,057
7,942
Other interest income
713
Total income
19,770
7,942
7
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
5,044
7,462
Other interest
10,734
2,748
15,778
10,210
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
67,277
33,886
Company pension contributions to defined contribution schemes
86
86
67,363
33,972
9
Dividends
2024
2023
£
£
Final paid
300,000
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
375,000
259,000
Adjustments in respect of prior periods
979
(7,897)
Total current tax
375,979
251,103
Deferred tax
Origination and reversal of timing differences
(19,075)
Total tax charge
375,979
232,028
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,309,721
1,600,963
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
327,430
304,183
Tax effect of expenses that are not deductible in determining taxable profit
7,570
4,272
Tax effect of income not taxable in determining taxable profit
(57,000)
Permanent capital allowances in excess of depreciation
(6,995)
Other non-reversing timing differences
40,000
(4,535)
Under/(over) provided in prior years
979
(7,897)
Taxation charge for the year
375,979
232,028
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
11
Tangible fixed assets
Plant & machinery
Fixtures & fittings
Office equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
1,952,173
261,095
226,925
374,901
2,815,094
Additions
45,700
8,161
11,081
14,300
79,242
Disposals
(4,480)
(362)
(13,500)
(18,342)
At 31 March 2024
1,993,393
269,256
237,644
375,701
2,875,994
Depreciation and impairment
At 1 April 2023
1,382,131
185,255
207,018
266,132
2,040,536
Depreciation charged in the year
134,137
23,833
11,550
32,305
201,825
Eliminated in respect of disposals
(4,380)
(352)
(6,096)
(10,828)
At 31 March 2024
1,511,888
209,088
218,216
292,341
2,231,533
Carrying amount
At 31 March 2024
481,505
60,168
19,428
83,360
644,461
At 31 March 2023
570,042
75,840
19,907
108,769
774,558
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
£
£
Plant & machinery
193,837
373,247
Motor vehicles
2,000
193,837
375,247
12
Stocks
2024
2023
£
£
Raw materials and consumables
511,562
551,996
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,403,481
952,065
Amounts recoverable on long term contracts
117,120
96,298
Amounts owed by group undertakings
4,238,644
3,159,719
Other debtors
309
464
Prepayments and accrued income
332,106
168,418
6,091,660
4,376,964
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
16
71,814
76,521
Payments received on account
69,134
70,797
Trade creditors
1,138,049
945,617
Corporation tax
385,734
306,753
Other taxation and social security
272,512
346,529
Other creditors
26,024
17,201
Accruals and deferred income
91,936
61,980
2,055,203
1,825,398
The finance lease obligations are secured on the assets to which the agreements relate.
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
16
41,892
113,706
Accruals and deferred income
180,000
221,892
113,706
The finance lease obligations are secured on the assets to which the agreements relate.
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
71,814
76,521
In two to five years
41,892
113,706
113,706
190,227
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
183,180
183,180
There were no deferred tax movements in the year.
The deferred tax liability set out above relates to accelerated capital allowances that are expected to mature and reverse overtime in line with the useful economic lives of the assets to which it relates.
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
22,815
23,478
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions totalling £15,117 (2023: £14,678) were payable to the fund at the balance sheet date.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
20
Reserves
Profit & loss account
This reserve represents cumulative profits and losses.
WARWICK DEVELOPMENT (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
21
Financial commitments, guarantees and contingent liabilities
On 16/11/2022 the company, together with its other group companies, gave a composite guarantee and debenture to B & Mrs J Johnson for any liabilities owed to them by the group.
On 20/09/2022 the NatWest Bank Plc registered a fixed and floating charge in the form of a debenture against all property or undertaking of the company.
On 04/09/2017 the company gave a guarantee to the NatWest Bank Plc for the amount of £900,000 in respect of a bank loan in the name of Warwick Properties LLP, an entity controlled by a director B Johnson.
22
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
374,826
-
23
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
1,832
35,582
Between two and five years
3,206
5,038
5,038
40,620
24
Related party transactions
The company has taken advantage of the exemptions under FRS102 which permits subsidiaries not to disclose transactions with other group companies which are wholly owned by the group.
Warwick Properties LLP is a related party due to common members and directors. As at 31 March 2024 the company owed Warwick Properties LLP £nil (2023: £20,430).
25
Parent company
The company is wholly owned by Warwick Acquisitions Limited, a company incorporated in England & Wales, with a registered office at 36 Howe Street, Bootle, Liverpool L20 8NG.
The ultimate parent company is Warwick Holdings Group Limited.
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