Company registration number:
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COMPANY INFORMATION
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CONTENTS
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GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
The principal activity of T.W. White and Sons ( Holdigns) Group during the year ended 30th April 2024 was that of purchasing, selling, and the repairing of motor vehicles and the supply of other ancillary services connected with the motor trade, including the wholesale distribution of accident repair parts nationwide. The Group holds franchises for Mazda, Suzuki and enjoy Authorised Repairer Agreements for Hyundai and Kia.
Turnover for the year was £52,895,049 This represented a 8.9% increase compared to the 2022/23 turnover of £48,536,988.
2023/24 marked the end of new car production limitations, due to the shortages of microchips and processors, which had been experienced since the pandemic of 2020/21. Supply was greater than demand - like before the pandemic. The Group has adapted well to consumers buying habits with increased sales due to our “omnichannel” platform and approach. This seeks to provide existing and new customers with a seamless shopping experience whether they are shopping by visiting our showrooms in person, by telephone, or on-line. However high Inflation and interest rates together with a lack of disposable income are affecting consumers decisions to keep their cars longer – affecting both our new and used sales gross profitability as we worked on lower margins to try and make our cars more affordable. Gross profit percentage was 4.9% compared to 6.1% in 2022/23. Admin expenses was 3.9% of turnover compared to the previous year at 4.7% - well below the 6.8% in 2020/21. These factors combined to make the Group a pre-tax profit of £239,005 (2023: £475,108). Profit margins on new cars were lower than last year due to general trading conditions and product discounting. The used car market was relatively stable for the first half of the year but then values plummeted at the start of our second half. This market “correction” had the result of a drop in the sales of our used units and profitability. Our general after sales business was affected by staff shortages but nevertheless was like last year. The Group further expanded sales with our very profitable parts distribution business and therefore the Group is well positioned should trading be adversely affected by the current economic and political uncertainty. The Group continues to enjoy excellent relationships with its financiers and the manufacturers it represents.
The main risks arising from the Group's operations are categorised as liquidity risk, market risk, credit risk and interest rate risk. The directors review and agree policies for managing each of these risks and they are summarised below.
There are funds available to the company to meet operating requirements. The Group has sufficient funds to meet all current operating requirements including any expansion of our wholesale parts distribution business as we have now restructured the funding for that element of the business. The directors maintain firm control of stocks and monitor the funded percentage and aging of all stock types on an ongoing basis.
The directors have reviewed the Group’s financial performance and position and have prepared forecasts on historic trends and assumptions about future sales, cost levels, and the timing of cash flows. Based on these current forecasts, the directors expect that despite potential reductions in the turnover of new and used vehicles, they will continue to be profitable in the period to end April 2025.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
Used prices, while currently stable, will continue to depreciate - especially on BEV's (Battery Electric Vehicles) as there is very little consumer demand for these used BEV's. Supply of new BEV's must increase (due to legislation) and both Mazda and Suzuki have new BEV models in the pipeline - although these will not be available until mid-2025 (Suzuki) and late 2026 (Mazda).
The Government ZEV Mandate legislation for new cars is proving very challenging to almost all OEM’s. Most manufacturer have a target of 22% BEV mix in 2024 rising to 80% by 2030. Currently the BEV market is running at only 10% for private sales but achieving 15% when business and fleet are accounted for. Demand for these BEV’s is just not there – partly due to the retail price of BEV’s, partly due to the charging infrastructure and partly due to “range anxiety”. Retail pricing will soon be affected by the large number of new Chinese entrants coming to the UK who will be marketing their models significantly cheaper than what is currently available from the established OEM’s. It remains to be seen if the UK follows Europe by introducing extra duties and tariffs on these Chinese OEM’s. Our after sales departments will continue to be steady but with increased growth coming from our parts distribution business and this will continue to balance profitability which would enable the company to absorb any possible reduction in the new car market and the knock-on to the used market. The retail automotive sector is still generally suffering from technical employees leaving the sector - looking for both higher wages and a better work/home lifestyle balance. We have addressed this by offering much higher remuneration packages in terms of basic salaries and increased benefits and consider ourselves now to be market leaders. We have also introduced 5-day working weeks for all employees – still opening at weekends with employees having days off in lieu. We believe we are very competitive and can retain our key workforce.
The Group's principal financial assets are cash and trade debtors. The credit risk associated with cash sales in minimal. The principal credit risk therefore arises from its trade debtors. In order to manage credit risk, the directors have implemented processes to ensure receipt of cleared funds for vehicle sales before the vehicle is released. The bonuses due from the manufacturers are paid by direct credit. Other trade debtors, principally as a result of parts sales and servicing of vehicles, require approved credit in advance which is supported by credit reports, reference checks and payment is required within the Group's credit terms and hence credit risk is minimised within a process of bi-monthly reviews.
Interest rate risk arises from the Group's exposure to interest rate fluctuations and this is managed by use of a mixture of fixed and floating facilities.
The Group owns the freehold of their Orpington site. Previously, part of the site was leased out to another company but that lease has been terminated and therefore we have scope to partly redevelop Orpington should we wish. This redevelopment could allow an additional franchise.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
The directors consider the key performance indicators of the business to be turnover and gross profit. Turnover of £52,895,049 was above that budgeted for the year. The overall gross profit percentage was down 1.1%, from 6.1% in 2023 to 4.9% in 2024, and the net profit before tax decreased 50.3%.
The directors are satisfied with the results for the year.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
The directors present their report and the financial statements for the year ended 30 April 2024.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £40,542 (2023 -£504,334).
Dividends of £560,000 (2022 - £600,000) were paid in the year.
The directors who served during the year were:
The Company has chosen, in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, to set out within the Company's Strategic Report the Company's Strategic Report Information required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF T.W. WHITE & SONS (HOLDINGS) LIMITED
We have audited the financial statements of T.W. White & Sons (Holdings) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 April 2024, which comprise the Consolidated profit and loss account, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting 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).
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF T.W. WHITE & SONS (HOLDINGS) LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF T.W. WHITE & SONS (HOLDINGS) LIMITED (CONTINUED)
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 Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙The Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were the most significant including:
°The Companies Act 2006;
°Financial Reporting 102;
°UK employment legislation
°UK health and safety legislation;
°UK tax legislation; and
°General Data Protection Regulations.
∙We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
∙We understood how the Group is complying with those legal and regulatory frameworks by, making enquiries to management, those responsible for legal and compliance procedures and the Group secretary. We corroborated our enquiries through our review of board minutes.
∙The engagement partner assessed whether the engagement team collecitvely had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
∙We assessed the susceptibility of the Group financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
°Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
°Challenging assumptions and judgements made by management in its significant accounting estimates; and
°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
°The application of inappropriate judgements or estimation to manipulate the Group's financial position;
°Posting of unusual journals and complex transactions; and
°The use of management override of controls to manipulate results, or to cause the Group to enter into transactions not in its best interests.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF T.W. WHITE & SONS (HOLDINGS) LIMITED (CONTINUED)
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 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.
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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Ashcombe House
5 The Crescent
Surrey
KT22 8DY
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CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2024
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 APRIL 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 34 form part of these financial statements.
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COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 34 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 APRIL 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
T.W. White & Sons (Holdings) Limited is a private company limited by shares and is registered and incorporated in England and Wales. The address of the registered office can be found on the company information page.
The financial statements are presented in £ and are rounded to the nearest pound.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and loss account in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The directors continually review the Group’s financial performance and position and have prepared the latest forecasts based on historic trends and importantly, assumptions about future sales, cost levels and the timing of cash flows including the peak trading months of March and September. Based on current forecasts management expect slightly increased levels of turnover and they fully expect to continue to be profitable for a period of 12 months from the date of signing these accounts. The forecasts show that the directors expect the Group to have sufficient cash resources to realise its assets and discharge its liabilities in the normal course of business for the foreseeable future.
The Group has significant property assets with very low borrowings and these assets could be further leveraged if necessary. However, the directors do not expect this to be required given recent results and forecasts – including the latest management information as at the date of signing these accounts. If the results are lower than expected, the directors have identified non-essential expenditure that can be reduced accordingly to conserve cash. Thus, they continue to adopt the going concern basis in preparing the financial accounts.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives. .
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Group 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, loans to related parties and investments in ordinary shares. Critical accounting estimates and assumptions 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. The realisable value of stock is calculated using established and well tested methodologies that take into account the changes in market dynamics, new models, condition of the vehicles an disposal costs. In assessing the fair value of the properties, the company periodically engages valuation experts to assist management in determining an appropriate valuation base don comparable properties and market conditions. Critical areas of judgement In recognising contingent stock, management makes judgments as to whether substantially all of the principal benefits and inherent risks rest with the company. Deferred tax liabilities are assessed on the basis of assumptions regarding the future, the likelihood that assets will be realised and liabilities will be settled and estimates as to the timing of those future events and as to the future tax rates that will be applicable. In recognising the amount due in relation to provisions, this is calculated at the best estimate of the amounts required to settle the obligation based upon the judgment of the directors.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
The 2024 valuations were made by the Directors, on an open market value for existing use basis. This valuation is based on local market knowledge and no significant assumptions are relied upon.
The Company had no investment properties.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Revaluation reserve
Capital redemption reserve
Capital reserve
Profit and loss account
All the bank loans and overdrafts of T.W. White & Sons (Holdings) Limited and T.W. White & Sons Limited are secured by cross guarantees provided by both companies and a related entity. The total liabilities outstanding at the balance sheet date, and covered under this cross guarantee in relation to bank overdrafts and loans, were £944,741 (2023: £1,250,897).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
The directors consider the ultimate controlling party to be N. P. White.
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