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COMPANY REGISTRATION NUMBER: 05227378
HEYWOOD ROOFTRUSS COMPANY LIMITED
FINANCIAL STATEMENTS
31 October 2023
HEYWOOD ROOFTRUSS COMPANY LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 31 OCTOBER 2023
Contents
Page
Officers and professional advisers 1
Strategic report 2
Directors' report 3
Independent auditor's report to the members 5
Profit and loss account 8
Balance sheet 9
Statement of change in shareholders funds 10
Statement of cash flows 11
Notes to the financial statements 12
HEYWOOD ROOFTRUSS COMPANY LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
The board of directors
J D Mayo
A S Phillips
A Fletcher
Registered office
Units 2/3 Alumex Works
Water Lane
Halifax
West Yorkshire
HX3 9HG
Auditor
Wheawill & Sudworth Limited
Chartered Accountants & statutory auditor
35 Westgate
Huddersfield
HD1 1PA
HEYWOOD ROOFTRUSS COMPANY LIMITED
STRATEGIC REPORT
YEAR ENDED 31 OCTOBER 2023
The directors present the strategic report for the year ended 31 October 2023. Principal activity The principal activity of the company during the year under review was that of the manufacture of rooftrusses and other related products. The company's strategy is to have sustainable and profitable growth by expanding our product portfolio, improving our supplier relationships and reaching out to existing and new potential clients. Review of the business The Directors were satisfied with our results. Our industry has had a challenging year, despite housing development being depressed ahead of the upcoming general election, the company has had improved results with raw material prices falling. As a result this increased our operating profit by £244k. Our turnover has reduced from £10.6 million in 2022 to £10.2 million in 2023. Principal risks and uncertainties Liquidity continues to be managed by the use of a mix of invoice financing and strict credit control procedures that minimise the risk of overdue debts. Trade creditors are paid within industry terms. Attention is paid to raw material price movements and trends. Development and performance Operational developments We continue to invest in our infrastructure and IT resources to help increase business efficiencies in the years to come allowing for extra capacity to be gained from our experienced and skilled workforce. Our people We are focused on up-skilling all staff members so that they can fulfill a variety of roles and progress in the company. Other information and explanations Future outlook The business is well placed to deliver profitable growth moving forward. Recent reduction in interest rates, change in government who have prioritised housing and greater optimism will see an uptick in business in 2024/2025.
This report was approved by the board of directors on 20 November 2024 and signed on behalf of the board by:
J D Mayo
A S Phillips
Director
Director
HEYWOOD ROOFTRUSS COMPANY LIMITED
DIRECTORS' REPORT
YEAR ENDED 31 OCTOBER 2023
The directors present their report and the financial statements of the company for the year ended 31 October 2023 .
Principal activities
The principal activity of the company during the year under review was that of the manufacture of rooftrusses and other related products.
Directors
The directors who served the company during the year were as follows:
J D Mayo
A S Phillips
A Fletcher
M Mullarky
(Resigned 26 April 2023)
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 20 November 2024 and signed on behalf of the board by:
J D Mayo
A S Phillips
Director
Director
HEYWOOD ROOFTRUSS COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEYWOOD ROOFTRUSS COMPANY LIMITED
YEAR ENDED 31 OCTOBER 2023
Opinion
We have audited the financial statements of Heywood Rooftruss Company Limited (the 'company') for the year ended 31 October 2023 which comprise the profit and loss account, balance sheet, statement of change in shareholders funds, statement of cash flows 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 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 October 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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.
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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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 the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 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: Obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework; Assessment of the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur; Ensured whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations; Gained clear understanding of the entity’s current activities, the scope of its authorisation and confirmed the effectiveness of its control environment where the entity is a regulated entity; As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
D M Butterworth
(Senior Statutory Auditor)
For and on behalf of
Wheawill & Sudworth Limited
Chartered Accountants & statutory auditor
35 Westgate
Huddersfield
HD1 1PA
20 November 2024
HEYWOOD ROOFTRUSS COMPANY LIMITED
PROFIT AND LOSS ACCOUNT
YEAR ENDED 31 OCTOBER 2023
2023
2022
Note
£
£
Turnover
4
10,156,796
10,655,425
Cost of sales
( 6,463,527)
( 7,663,942)
-------------
-------------
Gross profit
3,693,269
2,991,483
Distribution costs
( 236,363)
( 246,056)
Administrative expenses
( 2,152,897)
( 1,732,884)
Other operating income
5
37,765
------------
------------
Operating profit
6
1,304,009
1,050,308
Other interest receivable and similar income
9
3,019
3,933
Interest payable and similar expenses
10
( 150,353)
( 86,979)
------------
------------
Profit before taxation
1,156,675
967,262
Tax on profit
11
( 273,872)
( 193,070)
------------
------------
Profit for the financial year and total comprehensive income
882,803
774,192
------------
------------
All the activities of the company are from continuing operations.
HEYWOOD ROOFTRUSS COMPANY LIMITED
BALANCE SHEET
31 October 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
13
380,327
236,854
Current assets
Stocks
14
379,524
443,342
Debtors
15
5,539,212
5,629,386
Cash at bank and in hand
15,770
475,199
------------
------------
5,934,506
6,547,927
Creditors: amounts falling due within one year
Bank loans and overdrafts
( 335,597)
( 275,693)
Trade creditors
( 1,686,029)
( 1,911,865)
Other creditors including taxation and social security
16
( 2,059,953)
( 2,098,415)
Accruals and deferred income
( 70,000)
( 23,925)
------------
------------
( 4,151,579)
( 4,309,898)
------------
------------
Net current assets
1,782,927
2,238,029
------------
------------
Total assets less current liabilities
2,163,254
2,474,883
Creditors: amounts falling due after more than one year
17
Bank loans and overdrafts
( 664,524)
( 850,454)
Other creditors including taxation and social security
18
( 47,733)
( 65,370)
------------
------------
( 712,257)
( 915,824)
Provisions
Taxation including deferred tax
20
( 89,861)
( 52,115)
------------
------------
Net assets
1,361,136
1,506,944
------------
------------
Capital and reserves
Called up share capital
24
162
162
Share premium account
25
6,955
6,955
Profit and loss account
25
1,354,019
1,499,827
------------
------------
Shareholders funds
1,361,136
1,506,944
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 20 November 2024 , and are signed on behalf of the board by:
J D Mayo
A S Phillips
Director
Director
Company registration number: 05227378
HEYWOOD ROOFTRUSS COMPANY LIMITED
STATEMENT OF CHANGE IN SHAREHOLDERS FUNDS
YEAR ENDED 31 OCTOBER 2023
Called up share capital
Share premium account
Profit and loss account
Total
£
£
£
£
At 1 November 2021
162
6,955
725,635
732,752
Profit for the year
774,192
774,192
------------
------------
------------
------------
Total comprehensive income for the year
774,192
774,192
At 31 October 2022
162
6,955
1,499,827
1,506,944
Profit for the year
882,803
882,803
------------
------------
------------
------------
Total comprehensive income for the year
882,803
882,803
Dividends paid and payable
12
( 1,028,611)
( 1,028,611)
------------
------------
------------
------------
Total investments by and distributions to owners
( 1,028,611)
( 1,028,611)
------------
------------
------------
------------
At 31 October 2023
162
6,955
1,354,019
1,361,136
------------
------------
------------
------------
HEYWOOD ROOFTRUSS COMPANY LIMITED
STATEMENT OF CASH FLOWS
YEAR ENDED 31 OCTOBER 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
882,803
774,192
Adjustments for:
Depreciation of tangible assets
53,106
75,066
Government grant income
( 37,765)
Other interest receivable and similar income
( 3,019)
( 3,933)
Interest payable and similar expenses
150,353
86,979
Gains on disposal of tangible assets
( 337)
Tax on profit
273,872
193,070
Changes in:
Stocks
63,818
125,197
Trade and other debtors
90,174
( 1,684,473)
Trade and other creditors
( 338,520)
1,338,512
------------
------------
Cash generated from operations
1,172,250
866,845
Interest paid
( 150,353)
( 86,979)
Interest received
3,019
3,933
Tax paid
( 115,829)
( 369,696)
------------
------------
Net cash from operating activities
909,087
414,103
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 197,742)
( 42,653)
Proceeds from sale of tangible assets
1,500
------------
------------
Net cash used in investing activities
( 196,242)
( 42,653)
------------
------------
Cash flows from financing activities
Proceeds from borrowings
( 126,026)
( 121,658)
Government grant income
37,765
Payments of finance lease liabilities
( 17,637)
( 14,802)
Dividends paid
( 1,028,611)
------------
------------
Net cash used in financing activities
( 1,172,274)
( 98,695)
------------
------------
Net (decrease)/increase in cash and cash equivalents
( 459,429)
272,755
Cash and cash equivalents at beginning of year
475,199
202,444
------------
------------
Cash and cash equivalents at end of year
15,770
475,199
------------
------------
HEYWOOD ROOFTRUSS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 OCTOBER 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Units 2/3 Alumex Works, Water Lane, Halifax, West Yorkshire, HX3 9HG.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity and are rounded to the nearest £. Going concern The company meets its day to day working capital requirements through the use of invoice finance facilities. The directors have a reasonable expectation that these facilities will continue and the company will have adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax. Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date .
Operating leases
Rentals paid under operating leases are charged to profit and loss as incurred.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Leasehold property improvements
-
over the length of the lease
Plant and machinery
-
15% reducing balance
Fixtures and fittings
-
15% reducing balance
Office equipment
-
25% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the balance sheet as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Turnover
Turnover arises from:
2023
2022
£
£
Sale of goods
10,156,796
10,655,425
-------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2023
2022
£
£
Government grant income
37,765
------------
------------
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
53,106
75,066
Gains on disposal of tangible assets
( 337)
Impairment of trade debtors
46,404
18,303
------------
------------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Production staff
61
56
------------
------------
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
2,831,657
2,506,386
Social security costs
102,739
88,291
Other pension costs
66,969
24,600
------------
------------
3,001,365
2,619,277
------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
387,739
291,825
Company contributions to defined contribution pension plans
39,985
1,321
------------
------------
427,724
293,146
------------
------------
Remuneration of the highest paid director in respect of qualifying services:
2023
2022
£
£
Aggregate remuneration
132,500
121,469
------------
------------
9. Other interest receivable and similar income
2023
2022
£
£
Interest on loans and receivables
3,854
Interest on cash and cash equivalents
126
Other interest receivable and similar income
2,893
79
------------
------------
3,019
3,933
------------
------------
10. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
135,855
74,965
Interest on obligations under finance leases and hire purchase contracts
9,569
12,405
Other interest payable and similar charges
4,929
( 391)
------------
------------
150,353
86,979
------------
------------
11. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
236,279
198,500
Adjustments in respect of prior periods
( 153)
( 2,885)
------------
------------
Total current tax
236,126
195,615
------------
------------
Deferred tax:
Origination and reversal of timing differences
37,746
( 2,545)
------------
------------
Tax on profit
273,872
193,070
------------
------------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2022: higher than) the standard rate of corporation tax in the UK of 25 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
1,156,675
967,262
------------
------------
Profit on ordinary activities by rate of tax
289,168
183,909
Adjustment to tax charge in respect of prior periods
( 153)
Effect of expenses not deductible for tax purposes
11,348
10,623
Effect of capital allowances and depreciation
( 446)
( 2,176)
Effect of different UK tax rates on some earnings
(26,045)
714
------------
------------
Tax on profit
273,872
193,070
------------
------------
12. Dividends
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
1,028,611
------------
------------
13. Tangible assets
Leasehold property improvements
Plant and machinery
Fixtures and fittings
Office equipment
Total
£
£
£
£
£
Cost
At 1 November 2022
100,598
516,669
41,869
208,957
868,093
Additions
176,913
19,379
1,450
197,742
Disposals
( 1,500)
( 1,500)
------------
------------
------------
------------
------------
At 31 October 2023
100,598
692,082
61,248
210,407
1,064,335
------------
------------
------------
------------
------------
Depreciation
At 1 November 2022
100,598
331,923
29,550
169,168
631,239
Charge for the year
35,162
3,281
14,663
53,106
Disposals
( 337)
( 337)
------------
------------
------------
------------
------------
At 31 October 2023
100,598
366,748
32,831
183,831
684,008
------------
------------
------------
------------
------------
Carrying amount
At 31 October 2023
325,334
28,417
26,576
380,327
------------
------------
------------
------------
------------
At 31 October 2022
184,746
12,319
39,789
236,854
------------
------------
------------
------------
------------
14. Stocks
2023
2022
£
£
Finished goods
317,724
337,588
Work in progress
61,800
105,754
------------
------------
379,524
443,342
------------
------------
15. Debtors
2023
2022
£
£
Trade debtors
1,379,282
1,670,573
Amounts owed by group undertakings
3,939,655
3,356,650
Prepayments and accrued income
65,149
68,833
Directors loan account
243,957
Other debtors
155,126
289,373
------------
------------
5,539,212
5,629,386
------------
------------
The debtors above include the following amounts falling due after more than one year:
2023
2022
£
£
Other debtors
7,909
------------
------------
16. Other creditors including taxation and social security falling
due within one year
2023
2022
£
£
Corporation tax
428,082
307,785
Social security and other taxes
179,159
154,487
Obligations under finance leases
17,637
17,637
Other creditors
1,435,075
1,618,506
------------
------------
2,059,953
2,098,415
------------
------------
Obligations under finance leases and hire purchase contracts are secured on the related assets.
Included in other creditors is £1,233,731 (2022: £1,601,397) which is secured on the assets of the company.
17. Creditors: amounts falling due after more than one year
18. Other creditors including taxation and social security falling
due after more than one year
2023
2022
£
£
Obligations under finance leases
47,733
65,370
------------
------------
Obligations under finance leases and hire purchase contracts are secured on the related assets.
19. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2023
2022
£
£
Not later than 1 year
27,607
27,607
Later than 1 year and not later than 5 years
74,818
102,425
------------
------------
102,425
130,032
Less: future finance charges
( 37,055)
( 47,025)
------------
------------
Present value of minimum lease payments
65,370
83,007
------------
------------
20. Provisions
Deferred tax (note 21)
£
At 1 November 2022
52,115
Additions
37,746
------------
At 31 October 2023
89,861
------------
21. Deferred tax
The deferred tax included in the balance sheet is as follows:
2023
2022
£
£
Included in provisions (note 20)
89,861
52,115
------------
------------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
89,861
52,115
------------
------------
22. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution pension plans was £ 26,984 (2022: £ 23,279 ).
23. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2023
2022
£
£
Recognised in other operating income:
Government grants recognised directly in income
37,765
------------
------------
24. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 0.01 each
16,190
162
16,190
162
------------
------------
------------
------------
25. Reserves
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs . Profit and loss account - This reserve records retained earnings and accumulated losses.
26. Analysis of changes in net debt
At 1 Nov 2022
Cash flows
At 31 Oct 2023
£
£
£
Cash at bank and in hand
475,199
(459,429)
15,770
Debt due within one year
(293,330)
(59,904)
(353,234)
Debt due after one year
(915,824)
203,567
(712,257)
------------
------------
------------
( 733,955)
( 315,766)
( 1,049,721)
------------
------------
------------
27. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
143,062
204,680
Later than 1 year and not later than 5 years
115,452
258,514
------------
------------
258,514
463,194
------------
------------
28. Directors' advances, credits and guarantees
£nil (2022: £184,176) was advanced to certain directors in the year and £184,176 (2022: £nil) was repaid. Interest of £nil was charged (2022: £3,764). At the year end £nil was owed by certain directors to the company (2022: £243,957).
29. Related party transactions
Included in other creditors are amounts due to companies under common control totalling £1,656 (2022: £1,656) and included in other debtors are amounts due from companies under common control totalling £12,510 (2022: £69,013) which are repayable on demand and currently interest free. During the year consultancy fees totalling £nil (2022: £26,000) and £nil (2022: £14,425) were paid to a company under common control and a director respectively. Certain directors have provided personal guarantees in support of some of the company's finance facilities.
HEYWOOD ROOFTRUSS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 OCTOBER 2023
30. Control
The company is a wholly-owned subsidiary of Heywood Timber Holdings Limited. This company is a subsidiary of Heywood Development Capital Limited which is not controlled by any one party.