Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31Westlab Ltd ("the Company") is a private company limited by shares, incorporated in the United Kingdom and registered England and Wales. Company registered number 05214492. The address of its registered office and principal place of business is Unit 57 Dunsfold Park, Stovolds Hill, Cranleigh, Surrey, England, GU6 8TB. The principal activities of the Company during the year continues to be the manufacturing and distribution of mineral bath salts within the UK and beyond, sold through wholesale, retail and e-commerce. These financial statements have been presented in Pounds Sterling (£), this being the functional currency of the Company and currency of its primary economic environment. Monetary amounts within these financial statements have been rounded to the nearest £. The principal activities of the Company during the year continues to be the manufacturing and distribution of mineral bath salts within the UK and beyond, sold through wholesale, retail and e-commerce.The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £22,631 (2022 - £28,235). Contributions totalling £514 (2022 - £Nil) were payable to the fund at the date of the Statement of Financial Position and are included in creditors. 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 contributions 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 profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.truetrue53truetruefalse2023-01-01false58false 05214492 2023-01-01 2023-12-31 05214492 2022-01-01 2022-12-31 05214492 2023-12-31 05214492 2022-12-31 05214492 2022-01-01 05214492 1 2023-01-01 2023-12-31 05214492 d:CompanySecretary1 2023-01-01 2023-12-31 05214492 d:Director1 2023-01-01 2023-12-31 05214492 d:Director2 2023-01-01 2023-12-31 05214492 d:Director2 2023-12-31 05214492 d:Director3 2023-01-01 2023-12-31 05214492 d:RegisteredOffice 2023-01-01 2023-12-31 05214492 c:Buildings c:LongLeaseholdAssets 2023-01-01 2023-12-31 05214492 c:Buildings c:LongLeaseholdAssets 2023-12-31 05214492 c:Buildings c:LongLeaseholdAssets 2022-12-31 05214492 c:PlantMachinery 2023-01-01 2023-12-31 05214492 c:PlantMachinery 2023-12-31 05214492 c:PlantMachinery 2022-12-31 05214492 c:PlantMachinery c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 05214492 c:FurnitureFittings 2023-01-01 2023-12-31 05214492 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Registered number: 05214492









WESTLAB LTD









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
WESTLAB LTD
 
 
COMPANY INFORMATION


Directors
R Nugent 
S Daly 




Company secretary
R Nugent



Registered number
05214492



Registered office
Unit 57 Dunsfold Park
Stovolds Hill

Cranleigh

Surrey

GU6 8TB




Independent auditor
Forvis Mazars LLP
Chartered Accountants & Statutory Auditor

One St. Peter's Square

Manchester

M2 3DE





 
WESTLAB LTD
 

CONTENTS



Pages
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditor's Report to the members of Westlab Ltd
5 - 8
Statement of Comprehensive Income
9
Statement of Financial Position
10
Statement of Changes in Equity
11
Notes to the Financial Statements
12 - 31


 
WESTLAB LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors present their Strategic Report and the audited financial statements of Westlab Ltd for the year ended 31 December 2023.

Business review
 
The principal activities of the Company during the year continues to be the manufacturing and distribution of mineral bath salts within the UK and beyond, sold through wholesale, retail and e-commerce.
The company had a strong year, driven primarily by the easing of supply chain pressures towards the end of Q4 FY22 and the implementation of a trade-wide CPI adjustment to offset rising raw material costs due to inflation. These factors contributed to significantly healthier Gross Profit and EBITDA margins compared to the previous two years.

Principal risks and uncertainties
 
Management continually monitors 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 Company annually.
Economic impact of global events
There are several geopolitical events happening today which pose a risk to UK business, such as the Russian invasion of Ukraine and the unrest that is unfolding in the middle east. These issues pose risks to the supply chain, specifically the situation in the Red Sea. 
The Directors have carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures, and have concluded that these are non-adjusting events with the greatest impact on the business expected to be from the economic ripple effect on the global economy. The Directors have taken account of these potential impacts in their going concern assessment.

Financial risk management
 
The Company, in carrying out its business, faces a number of risks and uncertainties including credit, liquidity and interest rate and foreign exchange risk. The Company assesses its risks as part of its continuing operations. Our risk management policy results from a philosophy of pursuing sustainable growth and creating economic value while avoiding and managing risks.
Credit risk
The Company protects itself against customers not paying by intensifying internal credit control and its processes. 
Liquidity and interest rate risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting its obligations associated with financial liabilities. The Company aims to mitigate liquidity risk by managing cash generation by its operations and monitoring projected future cash flows. The Company’s exposure to liquidity risk and interest rate movements is considered to be low.
 
Page 1

 
WESTLAB LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial risk management (continued)
Foreign exchange risk
Foreign exchange risk refers to the potential for loss from exposure to foreign exchange rate fluctuations. There is a Hedge Policy in place to protect the ‘Budget Rate’. The policy defines the types of derivative products that can be used and also the foreign exchange partners to cooperate with. The Company performs a regular foreign exchange transactions review in order to ensure that the sufficient cover is in place.

Sustainability

The Company is carrying out supplier questionnaires to better understand sustainability from end to end and continues to monitor its B-Corp score and making gradual improvements where possible. 

Key performance indicators

Management use a range of performance measures to monitor and manage the business. The performance measures are split into financial and non-financial key performance indicators as set out below.
Financial key performance indicators
The Directors believe the financial key performance indicator of the Company is turnover growth. The table below summarises the performance for 2023 against 2022:

2023
As restated
2022
        £
        £
        £
        %
Turnover growth (£/%)

10,940,015

10,658,780

281,235
 
2.6
 

Non-financial key performance indicators
The Company does not consider that there are any non-financial key performance indicators which require disclosure within these financial statements.


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





R Nugent
Director

Date: 14 November 2024

Page 2

 
WESTLAB LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The Directors present their report and the audited financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under Company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £410,192 (2022 - a loss after tax of £830,007).

During the year no dividends were paid and the Directors do not propose the payment of any dividends at the year end (2022 - £Nil).

Directors

The Directors who served during the year and up until the date of signing, unless otherwise stated, were:

R Nugent 
R Bohan (resigned 31 October 2023)
S Daly 

Future developments

The Company is always seeking opportunities to grow the business. This ranges from growing demand for existing stock keeping units ("SKU's"), developing new products as well as opening up new channels. The Company has a comprehensive plan in place for how it plans to grow revenue and EBITDA over the coming years.

Page 3

 
WESTLAB LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Going concern

These financial statements have been prepared on a going concern basis. The current economic conditions present risks for all businesses. In response to such conditions, the Directors have carefully considered these risks, including an assessment of uncertainty and downside scenarios on future trading projection for a period of at least 12 months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis. The Directors have considered forecast cash flows, liquidity, borrowing facilities and related covenant requirements and the expected operational activities of the Company. Having due regard for these matters and after making appropriate enquiries, the Directors are satisfied that the Company has adequate resources for a period of at least 12 months from the date of signing the financial statements.
In addition, the Company's assets are assessed for recoverability on a regular basis, the Directors consider that the Company is not exposed to losses on these assets which would affect their decision to adopt the going concern basis.
The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties that lead to significant doubt upon the Company's ability to continue as a going concern. Thus, the Directors have continued to adopt the going concern basis of accounting in preparing these financial statements.

Disclosure of information to auditor

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

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

Events subsequent to the reporting date

There have been no events subsequent to the reporting date that require disclosure within these financial statements.

Independent auditor

The auditor, Forvis Mazars LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





R Nugent
Director

Date: 14 November 2024

Page 4

 
WESTLAB LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WESTLAB LTD
 

Opinion

We have audited the financial statements of Westlab Ltd ("the Company"’) for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity 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 FRS 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 December 2023 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.

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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.

Page 5

 
WESTLAB LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WESTLAB LTD
 

Other information

The other information comprises the information included in the Annual Report, other than the financial statements and our Auditor’s Report thereon. The Directors are responsible for the other information contained within the Annual 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 the 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.

Matters on which we are required to report by exception

In 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 Directors' remuneration specified by law are not made; and
we have not received all the information and explanations we require for our audit.

Page 6

 
WESTLAB LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WESTLAB LTD
 

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 intend either 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.
 
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. 

Based on our understanding of the Company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.  

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006. 
Page 7

 
WESTLAB LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WESTLAB LTD
 

Auditor's responsibilities for the audit of the financial statements (continued)
In addition, we evaluated the Directors' and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to, revenue recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the Directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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 the audit 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.




Neil Barton (Senior statutory auditor)

  
for and on behalf of

Forvis Mazars LLP
Chartered Accountants and Statutory Auditor 
One St. Peter's Square
Manchester
M2 3DE

15 November 2024
Page 8

 
WESTLAB LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

As restated
2023
2022
Note
£
£

  

Turnover
 4 
10,940,015
10,658,780

Cost of sales
  
(6,747,433)
(7,930,713)

Gross profit
  
4,192,582
2,728,067

Administrative expenses
  
(3,374,218)
(3,485,184)

Operating profit/(loss)
 5 
818,364
(757,117)

Interest payable and similar expenses
 9 
(243,514)
(131,589)

Profit/(loss) before tax
  
574,850
(888,706)

Tax on profit/(loss)
 10 
(164,658)
58,699

Profit/(loss) for the financial year
  
410,192
(830,007)

See note 23 for details of the prior year restatement.
There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022 - £NIL).

The notes on pages 12 to 31 form part of these financial statements.

Page 9

 
WESTLAB LTD
REGISTERED NUMBER: 05214492

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 11 
64,480
43,921

Tangible assets
 12 
185,698
301,667

Investments
 13 
376,272
376,272

  
626,450
721,860

Current assets
  

Stocks
 14 
1,222,500
1,693,377

Debtors
 15 
3,240,381
1,988,055

Cash and cash equivalents
 16 
25,335
14,979

  
4,488,216
3,696,411

Creditors: amounts falling due within one year
 17 
(4,072,985)
(3,679,639)

Net current assets
  
 
 
415,231
 
 
16,772

Total assets less current liabilities
  
1,041,681
738,632

Creditors: amounts falling due after more than one year
 18 
(375,001)
(482,144)

  

Net assets
  
666,680
256,488


Equity
  

Called up share capital 
 21 
4,873
4,873

Share premium account
 22 
3,702,457
3,702,457

Accumulated losses
 22 
(3,040,650)
(3,450,842)

Total equity
  
666,680
256,488


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




R Nugent
Director

Date: 14 November 2024

The notes on pages 12 to 31 form part of these financial statements.

Page 10

 
WESTLAB LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Accumulated losses
Total equity

£
£
£
£

At 1 January 2023
4,873
3,702,457
(3,450,842)
256,488


Comprehensive income for the year

Profit for the year
-
-
410,192
410,192
Total comprehensive income for the year
-
-
410,192
410,192


At 31 December 2023
4,873
3,702,457
(3,040,650)
666,680



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Share premium account
Accumulated losses
Total equity

£
£
£
£

At 1 January 2022
4,282
3,702,457
(2,620,835)
1,085,904


Comprehensive loss for the year

Loss for the year
-
-
(830,007)
(830,007)
Total comprehensive income for the year
-
-
(830,007)
(830,007)


Transactions with owners

Shares issued during the year
591
-
-
591


Total transactions with owners
591
-
-
591


At 31 December 2022
4,873
3,702,457
(3,450,842)
256,488


The notes on pages 12 to 31 form part of these financial statements.

Page 11

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Westlab Ltd ("the Company") is a private company limited by shares, incorporated in the United Kingdom and registered England and Wales. Company registered number 05214492. The address of its registered office and principal place of business is Unit 57 Dunsfold Park, Stovolds Hill, Cranleigh, Surrey, England, GU6 8TB.
The principal activities of the Company during the year continues to be the manufacturing and distribution of mineral bath salts within the UK and beyond, sold through wholesale, retail and e-commerce.
These financial statements have been presented in Pounds Sterling (£), this being the functional currency of the Company and currency of its primary economic environment.
Monetary amounts within these financial statements have been rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Lowry Trading Limited as at 31 December 2023 and these financial statements may be obtained from Companies House.

 
2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

Page 12

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Going concern

These financial statements have been prepared on a going concern basis. The current economic conditions present risks for all businesses. In response to such conditions, the Directors have carefully considered these risks, including an assessment of uncertainty and downside scenarios on future trading projection for a period of at least 12 months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis. The Directors have considered forecast cash flows, liquidity, borrowing facilities and related covenant requirements and the expected operational activities of the Company. Having due regard for these matters and after making appropriate enquiries, the Directors are satisfied that the Company has adequate resources for a period of at least 12 months from the date of signing the financial statements.
In addition, the Company's assets are assessed for recoverability on a regular basis, the Directors consider that the Company is not exposed to losses on these assets which would affect their decision to adopt the going concern basis.
The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties that lead to significant doubt upon the Company's ability to continue as a going concern. Thus, the Directors have continued to adopt the going concern basis of accounting in preparing these financial statements.

 
2.5

Foreign currency translation

Functional and presentation currency

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

Transactions and balances

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

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

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 13

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Turnover

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

Sale of goods

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

 
2.7

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the lease term.

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

 
2.8

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.9

Finance costs

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.

 
2.10

Borrowing costs

All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they are incurred.

Page 14

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Pensions

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 contributions 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 profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.12

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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

Page 15

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Intangible assets

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

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

 The estimated useful lives range as follows:

Development expenditure
-
3
years straight - line
Computer software
-
3
years straight - line

The amortisation expense is charged to administrative expenses within the Statement of Comprehensive Income.

 
2.14

Tangible assets

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

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:

Long-term leasehold property
-
20%
Plant and machinery
-
33%
Fixtures and fittings
-
25%
Office equipment
-
33%

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.

The depreciation expense is charged to administrative expenses within the Statement of Comprehensive Income.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 16

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.16

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 weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.

 
2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.18

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.

 
2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.20

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Page 17

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.20
Financial instruments (continued)

Other financial assets

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

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

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

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

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

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

Page 18

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.20
Financial instruments (continued)

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires the Company's directors to exercise judgements and estimates that have been made in preparing the financial statements, as well as make certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions.
Critical judgements in applying the Company's accounting policies
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Intangible assets
Intangible assets are amortised over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on the number of factors. In re assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Tangible assets
Tangible assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on the number of factors. In re assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
 
Page 19

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.Judgments in applying accounting policies (continued)

Critical judgements in applying the Company's accounting policies (continued)
Investments
Management periodically review the carrying value of investments and consider the need for impairment. They take into consideration key factors such as performance and underlying assets of the entities in which the investments are held.
During the current year no impairment was required in respect of investments (2022 - £Nil).
Stock provision
The Company provides for stock deemed to be obsolete. The provision is based on the ratio of historical information of sales and usages compared to quantities of stock held.
As at 31 December 2023 a provision of £158,551 has been recognised against stock (2022 - £48,966). During the year a charge of £158,551 (2022 - £48,966) was recognised within cost of sales in the Statement of Comprehensive Income
Key sources of estimation uncertainty
The Company considers that there are no key sources of estimation uncertainty that require disclosure within these financial statements.

4.


Turnover

The whole of the turnover is attributable to the principal activity of the Company.

Analysis of turnover by country of destination:

As restated
2023
2022
£
£

United Kingdom
10,413,592
9,883,763

Rest of Europe
211,121
322,607

Rest of the world
315,302
452,410

10,940,015
10,658,780


See note 23 for details of the prior year restatement.

Page 20

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Operating profit/(loss)

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

2023
2022
£
£

Depreciation of tangible assets
221,113
228,217

Amortisation of intangible assets
8,240
18,998

Exchange differences
38,899
(25,212)

Operating lease payments
365,542
82,920

Impairment of stock (note 14)
158,551
48,996


6.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2023
2022
£
£

Fees payable to the Company's auditor in respect of the audit of the Company's financial statements
27,000
22,500

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated financial statements of the parent Company.


7.


Employees

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


2023
2022
£
£

Wages and salaries
1,706,591
1,792,043

Social security costs
115,615
114,461

Cost of defined contribution scheme
22,631
28,235

1,844,837
1,934,739


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


        2023
        2022
            No.
            No.







Sales and administration
53
58

Page 21

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
124,967
82,317

Company contributions to defined contribution pension schemes
2,433
1,541

127,400
83,858



9.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
195,160
108,203

Other loan interest payable
1,035
3,954

Finance leases and hire purchase contracts
47,319
19,432

243,514
131,589


10.


Tax on profit/(loss)


2023
2022
£
£

Corporation tax


Adjustments in respect of prior periods
17,239
(11,623)

Total current tax
17,239
(11,623)

Deferred tax


Origination and reversal of timing differences
147,366
(47,076)

Adjustments in respect of prior periods
53
-

Total deferred tax
147,419
(47,076)


Tax on profit/(loss)
164,658
(58,699)
Page 22

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
10.Tax on profit/(loss) (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) on ordinary activities before tax
574,850
(888,706)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
135,205
(168,854)

Effects of:


Fixed asset differences
1,964
870

Expenses not deductible for tax purposes
1,477
17,873

Adjustments to tax charge in respect of prior periods - corporation tax
17,239
(11,623)

Adjustments to tax charge in respect of prior periods - deferred tax
53
-

Remeasurement of deferred tax for changes in tax rates
8,720
(29,171)

Group relief
-
132,206

Total tax charge for the year
164,658
(58,699)


Factors that may affect future tax charges

There are no factors that may affect future tax charges noted at the reporting date.

Page 23

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Intangible assets




Development expenditure
Computer software
Total

£
£
£



Cost


At 1 January 2023
49,768
62,519
112,287


Additions
4,000
24,799
28,799



At 31 December 2023

53,768
87,318
141,086



Amortisation


At 1 January 2023
49,768
18,598
68,366


Charge for the year
136
8,104
8,240



At 31 December 2023

49,904
26,702
76,606



Net book value



At 31 December 2023
3,864
60,616
64,480



At 31 December 2022
-
43,921
43,921



Page 24

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Tangible assets





Long-term leasehold property
Plant and machinery
Fixtures and fittings
Office equipment
Total

£
£
£
£
£



Cost


At 1 January 2023
326,164
1,685,254
42,874
71,923
2,126,215


Additions
15,808
81,579
-
7,757
105,144



At 31 December 2023

341,972
1,766,833
42,874
79,680
2,231,359



Depreciation


At 1 January 2023
226,199
1,510,644
39,432
48,273
1,824,548


Charge for the year
37,425
165,184
1,486
17,018
221,113



At 31 December 2023

263,624
1,675,828
40,918
65,291
2,045,661



Net book value



At 31 December 2023
78,348
91,005
1,956
14,389
185,698



At 31 December 2022
99,965
174,610
3,442
23,650
301,667

Page 25

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
470,340



At 31 December 2023

470,340



Impairment


At 1 January 2023
94,068



At 31 December 2023

94,068



Net book value



At 31 December 2023
376,272



At 31 December 2022
376,272


Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

SPL Cobham Limited
Unit 57 Dunsfold Park, Stovolds Hill,Cranleigh, Surrey, GU6 8TB
Ordinary
100%


14.


Stocks

2023
2022
£
£

Raw materials and consumables
1,222,500
1,693,377


During the year a charge of £158,551 (2022 - £48,966) was recognised within cost of sales in the Statement of Comprehensive Income.

Page 26

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Debtors

2023
2022
£
£


Trade debtors
2,950,644
1,424,983

Amounts owed by group undertakings
-
107,217

Other debtors
114,613
155,824

Prepayments and accrued income
162,634
140,122

Deferred taxation
12,490
159,909

3,240,381
1,988,055


Amounts owed by group undertakings are unsecured, interest free and repayable on demand within one year.
Included within other debtors is an amount outstanding from the Directors of £11,000 (2022 - £64,121). This amount is unsecured, interest free and repayable on demand within one year.


16.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
25,335
14,979

Less: bank overdrafts
(178,173)
(187,340)

(152,838)
(172,361)


Page 27

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
178,173
187,340

Bank loans (note 19)
107,143
107,142

Trade creditors
1,821,132
2,012,576

Amounts owed to group undertakings
186,996
400,000

Other taxation and social security
256,778
362,820

Obligations under finance lease and hire purchase contracts
93,145
135,141

Other creditors
530,193
128,783

Accruals and deferred income
899,425
345,837

4,072,985
3,679,639


The bank overdrafts and bank loans, provide by Coutts & Co., are secured under fixed and floating charges which cover all of the property or undertaking of the Company.
Hire purchase liabilities are secured upon the assets to which they relate. Hire purchase liabilities are also secured by a debenture creating a fixed and floating charge over the assets of the Company.


18.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans (note 19)
375,001
482,144


The bank overdrafts and bank loans, provide by Coutts & Co., are secured under fixed and floating charges which cover all of the property or undertaking of the Company.

Page 28

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
107,143
107,142

Amounts falling due 1-2 years

Bank loans
107,143
107,143

Amounts falling due 2-5 years

Bank loans
267,858
321,429

Amounts falling due after more than 5 years

Bank loans
-
53,572

482,144
589,286


The bank overdrafts and bank loans, provide by Coutts & Co. are secured under fixed and floating charges which cover all of the property or undertaking of the Company.


20.


Deferred taxation




2023
2022


£

£






At beginning of year
159,909
112,833


(Charged)/credited to the Statement of Comprehensive Income
(147,419)
47,076



At end of year
12,490
159,909

The deferred tax asset is made up as follows:

2023
2022
£
£


Fixed asset timing differences
(18,324)
(39,088)

Tax losses carried forward
7,555
183,471

Short term timing differences
23,259
15,526

12,490
159,909

Page 29

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Called up share capital

2023
2022
£
£
Allotted, called up and fully paid



391,333 (2022 - 391,333) Ordinary shares of £0.01 each
3,913
3,913
11,535 (2022 - 11,535) Ordinary B shares of £0.01 each
115
115
11,500 (2022 - 11,500) Ordinary C shares of £0.01 each
115
115
18,850 (2022 - 18,850) Ordinary D shares of £0.01 each
189
189
8,544 (2022 - 8,544) Ordinary E shares of £0.01 each
85
85
22,754 (2022 - 22,754) Ordinary F shares of £0.01 each
228
228
22,754 (2022 - 22,754) Ordinary G shares of £0.01 each
228
228

4,873

4,873

Ordinary shares and Ordinary C shares each carry voting rights and no rights to fixed income. 
Ordinary B, D, E, F and G shares carry no voting rights and no rights to fixed income. 


22.


Reserves

Share premium account

The Share premium account represents amounts paid in excess of the nominal value of the share capital.

Accumulated losses

Accumulated losses represent the cumulative profits and losses of the Company, less the payment of any dividends.


23.


Prior year adjustment

The prior year Statement of Comprehensive Income has been restated in order to reallocate £997,411 from Cost of Sales to Revenue to better reflect the nature of the transactions. As a result, Cost of Sales has increased by £997,411 and revenue has decreased by £997,411. There has been no impact on the overall profit for the year.


24.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £22,631 (2022 - £28,235). Contributions totalling £514 (2022 - £Nil) were payable to the fund at the date of the Statement of Financial Position and are included in creditors.

Page 30

 
WESTLAB LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
57,185
75,812

Later than 1 year and not later than 5 years
35,960
59,328

93,145
135,140


26.


Related party transactions

The Company has taken advantage of the exemption available in accordance with Section 33 of FRS 102 not to disclose transactions entered into between two or more members of a group, as the Company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.
Included within other debtors is an amount outstanding from the directors of £11,000 (2022 - £64,121). This amount is unsecured, interest free and repayable on demand within one year (note 15).


27.


Events subsequent to the reporting date

There have been no events subsequent to the reporting date that require disclosure within these financial statements.


28.


Controlling party

The immediate and ultimate parent company is Lowry Trading Limited, a Company incorporated in the United Kingdom and registered in England and Wales. The ultimate parent undertaking is The Scott Fletcher 2008 Discretionary Settlement, which is an unincorporated trust.
The largest and smallest group of which the Company is a member for which consolidated financial statements are drawn up is that of Lowry Trading Limited. Copies of the consolidated financial statements of this Company can be obtained from Companies House.

Page 31