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COMPANY REGISTRATION NUMBER: 00827523
GARTHWEST LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 March 2024
GARTHWEST LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2024
Contents
Page
Strategic Report
1
Directors' Report
3
Independent Auditor's Report to the Members
5
Statement of Comprehensive Income
10
Statement of Financial Position
11
Statement of Changes in Equity
12
Statement of Cash Flows
13
Notes to the Financial Statements
14
GARTHWEST LIMITED
STRATEGIC REPORT
YEAR ENDED 31 MARCH 2024
Review of the Business
The principal activities of Garthwest continued to be within the sectors of corrugated packaging : casemaking, diecutting, printing and glueing. In addition, Garthwest design and manufacture Point of Purchase (POP) and instore marketing materials and promotional print. The company continues to recover from an earlier period of difficult trading conditions greatly influenced by issues in the wider economy. Earnings and margins have since improved and continue to do so. The pre-tax profit for the period was £744,990 (2023; £1,082,248). The company's net current liabilities position is £1,706,131 (2023; £1,903,746) and the net asset balance sheet total is £2,608,762 (2023; £2,031,890). The above financial information is considered by the directors to be the key performance indicators and are reviewed monthly via the management accounts.
Principal Risks and Uncertainties
The principal risk faced by the company is current market conditions (Inflation,flat-lining major economies and the war in Ukraine). However,the directors consider that, by focusing on high quality customer service, the company is maintaining its position in the market. Liquidity and cash flow risks are being mitigated by effective cash management.
Strategy and Future Developments
Over the course of our history, the Directors of Garthwest have always employed innovation and new product and market development as a critical factor in our strategy. Recent years have seen the implementation of several key strategies which are ongoing: 1) The development of Garthwest Creative, incorporating the in-house design team alongside the expanded digital print capacity, is helping in the expansion of new start up clients and on-line product shipping. 2) Garthwest has strategically expanded it's supplier base to help guarantee continuity of product supply to its customers. 3) Flexographic(water based) printing quality : Garthwest continues to work closely with Huber inks, on new technology printing, focusing on continual improvement of print quality. 4) Investment in a new taping machine broadens Garthwest's ability to support start up businesses and online retailing.
Summary
Following a couple of volatile years in the Corrugated packaging industry, the Directors of Garthwest Limited are very pleased to release audited accounts for the year ended. After considerable hard work the Directors and Management of Garthwest Limited, have succeeded in moving the company back into a position of profitability. The underpinning of this achievement has come through targeted cost reduction, labour, transport and raw materials. Garthwest Limited has also substantially increased its supply base through this cycle, allowing for better targeted pricing and a broader guarantee of consistent quality and service. Looking ahead the Corrugated Packaging industry is leading the way in environmental packaging, helping to replace and reduce plastic. The continued demand for on-line shopping is also giving the industry the strongest year on year growth it has seen for more than a decade.
This report was approved by the board of directors on 21 November 2024 and signed on behalf of the board by:
Mr L R West Director
Registered office:
Rotterdam Road
Sutton Fields Industrial Estate
Hull
HU7 0XA
GARTHWEST LIMITED
DIRECTORS' REPORT
YEAR ENDED 31 MARCH 2024
The directors present their report and the financial statements of the company for the year ended 31 March 2024 .
Directors
The directors who served the company during the year were as follows:
Mr J R West
Mrs E C West
Mr A J West
Mr L R West
Mr A R West
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Disclosure of Information in the Strategic Report
Information in respect of business review, future developments and principal risks and uncertainties is included in the strategic report.
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 21 November 2024 and signed on behalf of the board by:
Mr L R West Director
Registered office:
Rotterdam Road
Sutton Fields Industrial Estate
Hull
HU7 0XA
GARTHWEST LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GARTHWEST LIMITED
YEAR ENDED 31 MARCH 2024
Opinion
We have audited the financial statements of Garthwest Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, 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 March 2024 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: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, - capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and cardboard product manufacturing sector in which it operates; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company including, - the Companies Act 2006, taxation legislation, anti-bribery, employment and environmental legislation; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence and required licences; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - reading the minutes of meetings of those charged with governance; - enquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 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.
Robert Anderson
(Senior Statutory Auditor)
For and on behalf of
Streets Audit LLP
Chartered Accountants & statutory auditor
Halifax House
30 George Street
Hull
East Yorkshire
HU1 3AJ
22 November 2024
GARTHWEST LIMITED
STATEMENT OF COMPREHENSIVE INCOME
YEAR ENDED 31 MARCH 2024
2024
2023
Note
£
£
Turnover
4
8,907,800
10,525,787
Cost of sales
5,899,523
7,275,908
------------
-------------
Gross Profit
3,008,277
3,249,879
Distribution costs
292,577
337,472
Administrative expenses
1,771,145
1,593,946
------------
------------
Operating Profit
5
944,555
1,318,461
Other interest receivable and similar income
9
167
Interest payable and similar expenses
10
199,732
236,213
------------
------------
Profit Before Taxation
744,990
1,082,248
Tax on profit
11
48,358
282,490
---------
------------
Profit for the Financial Year and Total Comprehensive Income
696,632
799,758
---------
------------
All the activities of the company are from continuing operations.
GARTHWEST LIMITED
STATEMENT OF FINANCIAL POSITION
31 March 2024
2024
2023
Note
£
£
£
£
Fixed Assets
Tangible assets
13
5,552,584
5,826,946
Current Assets
Stocks
14
216,319
317,035
Debtors
15
1,301,073
1,519,514
Cash at bank and in hand
101,865
246,011
------------
------------
1,619,257
2,082,560
Creditors: amounts falling due within one year
16
( 3,325,388)
( 3,986,306)
------------
------------
Net Current Liabilities
( 1,706,131)
( 1,903,746)
------------
------------
Total Assets Less Current Liabilities
3,846,453
3,923,200
Creditors: amounts falling due after more than one year
17
( 660,391)
( 1,273,027)
Provisions
Taxation including deferred tax
19
( 577,300)
( 618,283)
------------
------------
Net Assets
2,608,762
2,031,890
------------
------------
Capital and Reserves
Called up share capital
22
19,800
19,800
Revaluation reserve
23
2,578,559
2,641,909
Profit and loss account
23
10,403
( 629,819)
------------
------------
Shareholders Funds
2,608,762
2,031,890
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 21 November 2024 , and are signed on behalf of the board by:
Mr L R West Director
Company registration number: 00827523
GARTHWEST LIMITED
STATEMENT OF CHANGES IN EQUITY
YEAR ENDED 31 MARCH 2024
Called up share capital
Revaluation reserve
Profit and loss account
Total
£
£
£
£
At 1 April 2022
19,800
2,702,134
( 1,443,542)
1,278,392
Profit for the year
799,758
799,758
Other comprehensive income for the year:
Reclassification from revaluation reserve to profit and loss account
( 60,225)
60,225
--------
------------
------------
------------
Total Comprehensive Income for the Year
( 60,225)
859,983
799,758
Dividends paid and payable
12
( 46,260)
( 46,260)
--------
------------
------------
------------
Total Investments by and Distributions to Owners
( 46,260)
( 46,260)
At 31 March 2023
19,800
2,641,909
( 629,819)
2,031,890
Profit for the year
696,632
696,632
Other comprehensive income for the year:
Reclassification from revaluation reserve to profit and loss account
( 63,350)
63,350
--------
------------
------------
------------
Total Comprehensive Income for the Year
( 63,350)
759,982
696,632
Dividends paid and payable
12
( 119,760)
( 119,760)
----
----
---------
---------
Total Investments by and Distributions to Owners
( 119,760)
( 119,760)
--------
------------
---------
------------
At 31 March 2024
19,800
2,578,559
10,403
2,608,762
--------
------------
---------
------------
GARTHWEST LIMITED
STATEMENT OF CASH FLOWS
YEAR ENDED 31 MARCH 2024
2024
2023
£
£
Cash Flows from Operating Activities
Profit for the financial year
696,632
799,758
Adjustments for:
Depreciation of tangible assets
370,284
346,704
Other interest receivable and similar income
( 167)
Interest payable and similar expenses
199,732
236,213
Gains on disposal of tangible assets
( 55,093)
( 36,017)
Tax on profit
48,358
282,490
Accrued expenses/(income)
28,868
( 124,689)
Changes in:
Stocks
100,716
128,363
Trade and other debtors
218,441
109,812
Trade and other creditors
( 743,664)
( 2,672,951)
---------
------------
Cash generated from operations
864,107
( 930,317)
Interest paid
( 200,645)
( 235,483)
Interest received
167
Tax received/(paid)
16,669
( 7,000)
---------
------------
Net cash from/(used in) operating activities
680,298
( 1,172,800)
---------
------------
Cash Flows from Investing Activities
Purchase of tangible assets
( 164,121)
( 186,691)
Proceeds from sale of tangible assets
123,292
73,039
---------
------------
Net cash used in investing activities
( 40,829)
( 113,652)
---------
------------
Cash Flows from Financing Activities
(Repayment of)/Proceeds from borrowings
( 406,083)
1,465,309
Payment of and new hire purchase agreements
( 257,772)
( 238,409)
Dividends paid
( 119,760)
( 46,260)
---------
------------
Net cash (used in)/from financing activities
( 783,615)
1,180,640
---------
------------
Net Decrease in Cash and Cash Equivalents
( 144,146)
( 105,812)
Cash and Cash Equivalents at Beginning of Year
246,011
351,823
---------
---------
Cash and Cash Equivalents at End of Year
101,865
246,011
---------
---------
GARTHWEST LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2024
1. General Information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Rotterdam Road, Sutton Fields Industrial Estate, Hull, HU7 0XA.
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, as modified by the revaluation of certain financial assets and liabilities measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.
Company Information
The company is a private limited company registered in England. The registered office and trading address is stated in the Directors' Report.
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. Significant judgements The judgements that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are the revaluation of fixed assets, the choice of depreciation rates and residual values, the calculation of overhead absorbed into manufactured stocks and the provision made for doubtful debts.
Revenue Recognition
The turnover shown in the profit and loss account represents amounts receivable for goods sold during the year, exclusive of Value Added Tax. Turnover is recognised at the point at which goods are despatched.
Income Tax
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all material 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, with the following exceptions: Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains on disposal of fixed assets that have been rolled over into replacement assets, only to the extent that, at the balance sheet date, there is a binding agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the replacement assets are sold.
Foreign Currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
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:
Freehold property
-
2% straight line
Plant and machinery
-
4%-8% straight line and reducing balance
Office equipment
-
15% straight line
Motor vehicles
-
25% straight line and reducing balance
Computer equipment
-
25%-33% straight line
An amount equal to the excess of the annual depreciation charge on revalued assets over the original cost depreciation charge on those assets is transferred annually from the revaluation reserve to retained earnings.
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. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs.
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 are recognised in the statement of financial position 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.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Financial Instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
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:
2024
2023
£
£
Sale of goods
8,907,800
10,525,787
------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating Profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Depreciation of tangible assets
370,284
346,704
Gains on disposal of tangible assets
( 55,093)
( 36,017)
Foreign exchange differences
35
( 54)
Operating lease payments
35,224
35,817
---------
---------
6. Auditor's Remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
9,500
9,000
-------
-------
7. Staff Costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
36
40
Distribution staff
2
2
Administrative staff
12
13
----
----
50
55
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
1,667,923
1,640,607
Social security costs
147,571
153,162
Other pension costs
162,889
62,479
------------
------------
1,978,383
1,856,248
------------
------------
8. Directors' Remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
208,367
160,721
Company contributions to defined contribution pension plans
104,896
---------
---------
313,263
160,721
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2024
2023
No.
No.
Defined contribution plans
3
3
----
----
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
£
£
Aggregate remuneration
85,910
Company contributions to defined contribution pension plans
34,965
---------
----
120,875
---------
----
9. Other Interest Receivable and Similar Income
2024
2023
£
£
Other interest receivable and similar income
167
----
----
10. Interest Payable and Similar Expenses
2024
2023
£
£
Interest on banks loans and overdrafts
94,215
79,098
Interest on obligations under finance leases and hire purchase contracts
79,116
100,245
Other interest payable and similar charges
26,401
56,870
---------
---------
199,732
236,213
---------
---------
11. Tax on Profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
187,500
88,490
Adjustments in respect of prior periods
( 98,159)
---------
--------
Total current tax
89,341
88,490
---------
--------
Deferred tax:
Origination and reversal of timing differences
( 40,983)
194,000
--------
---------
Tax on profit
48,358
282,490
--------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 19 %).
2024
2023
£
£
Profit on ordinary activities before taxation
744,990
1,082,248
---------
------------
Profit on ordinary activities by rate of tax
186,247
201,736
Adjustment to tax charge in respect of prior periods
( 98,159)
Effect of expenses not deductible for tax purposes
3,809
3,174
Effect of capital allowances and depreciation
( 43,539)
77,580
---------
------------
Tax on profit
48,358
282,490
---------
------------
12. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
2024
2023
£
£
Equity dividends on ordinary shares
119,760
46,260
---------
--------
13. Tangible Assets
Freehold property
Plant and machinery
Fixtures and fittings
Motor vehicles
Computer Equipment
Total
£
£
£
£
£
£
Cost/Valuation
At 1 Apr 2023
2,800,000
6,146,326
240,924
686,582
273,183
10,147,015
Additions
20,300
143,821
164,121
Disposals
( 48,092)
( 285,749)
( 333,841)
------------
------------
---------
---------
---------
-------------
At 31 Mar 2024
2,800,000
6,118,534
240,924
544,654
273,183
9,977,295
------------
------------
---------
---------
---------
-------------
Depreciation
At 1 Apr 2023
40,509
3,396,160
233,911
384,573
264,916
4,320,069
Charge for the year
19,320
159,041
3,285
180,371
8,267
370,284
Disposals
( 265,642)
( 265,642)
------------
------------
---------
---------
---------
-------------
At 31 Mar 2024
59,829
3,555,201
237,196
299,302
273,183
4,424,711
------------
------------
---------
---------
---------
-------------
Carrying amount
At 31 Mar 2024
2,740,171
2,563,333
3,728
245,352
5,552,584
------------
------------
---------
---------
---------
-------------
At 31 Mar 2023
2,759,491
2,750,166
7,013
302,009
8,267
5,826,946
------------
------------
---------
---------
---------
-------------
Tangible assets held at valuation
Included in Freehold Property is a property that has been revalued on an open market value basis by a member of the Royal Institution of Chartered Surveyors. There is no deferred tax charge arising on the revaluation due to available indexation allowance. Plant and machinery was revalued in the prior period by the directors on an open market value basis.
In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:
Freehold land and buildings
Plant and machinery
Total
£
£
£
At 31 March 2024
Aggregate cost
964,140
6,077,993
7,042,133
Aggregate depreciation
(359,029)
(4,014,561)
(4,373,590)
---------
------------
-------------
Carrying value
605,111
2,063,432
2,668,543
---------
------------
-------------
At 31 March 2023
Aggregate cost
964,140
6,077,993
7,042,133
Aggregate depreciation
(356,281)
(3,902,298)
(4,258,579)
---------
------------
------------
Carrying value
607,859
2,175,695
2,783,554
---------
------------
------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant and machinery
Motor vehicles
Computer Equipment
Total
£
£
£
£
At 31 March 2024
2,204,335
177,431
2,381,766
------------
---------
----
------------
At 31 March 2023
2,325,721
237,532
3,166
2,566,419
------------
---------
-------
------------
14. Stocks
2024
2023
£
£
Raw materials and consumables
72,845
133,295
Finished goods and goods for resale
143,474
183,740
---------
---------
216,319
317,035
---------
---------
15. Debtors
2024
2023
£
£
Trade debtors
1,255,422
1,474,662
Prepayments and accrued income
45,571
43,959
Other debtors
80
893
------------
------------
1,301,073
1,519,514
------------
------------
Trade debtors have been given as security against a debtor finance arrangement.
16. Creditors: amounts falling due within one year
2024
2023
£
£
Bank borrowing and debtor finance
1,111,386
1,459,470
Trade creditors
915,556
1,091,423
Accruals and deferred income
155,695
127,740
Corporation tax
187,500
81,490
Social security and other taxes
528,276
631,182
Obligations under finance leases and hire purchase contracts
251,475
295,501
Other creditors
175,500
299,500
------------
------------
3,325,388
3,986,306
------------
------------
Bank borrowing includes a debtor finance liability of £1,053,386 (2023 - £1,401,470) which is secured against the trade debtors. Hire purchase and finance lease liabilities are secured on the assets concerned.
17. Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank borrowing and debtor finance
82,167
140,166
Obligations under finance leases and hire purchase contracts
480,173
693,919
Other creditors
98,051
438,942
---------
------------
660,391
1,273,027
---------
------------
Hire purchase and finance lease liabilities are secured on the assets concerned.
18. Finance Leases and Hire Purchase Contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2024
2023
£
£
Not later than 1 year
251,475
295,501
Later than 1 year and not later than 5 years
480,173
693,919
---------
---------
731,648
989,420
---------
---------
19. Provisions
Deferred tax (note 20)
£
At 1 April 2023
618,283
Charge against provision
( 40,983)
---------
At 31 March 2024
577,300
---------
20. Deferred Tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 19)
577,300
618,283
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
577,300
618,283
---------
---------
21. Employee Benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 57,993 (2023: £ 62,479 ).
22. Called Up Share Capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
19,800
19,800
19,800
19,800
--------
--------
--------
--------
All shares have equal and full rights to participate in dividends and distributions on a winding up.
23. Reserves
Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income. Movements between the revaluation reserve and the profit and loss reserve are made excess depreciation charges on revalued fixed assets. Profit and loss account - This reserve records retained earnings and accumulated losses.
24. Analysis of Changes in Net Debt
At 1 Apr 2023
Cash flows
At 31 Mar 2024
£
£
£
Cash at bank and in hand
246,011
(144,146)
101,865
Debt due within one year
(1,754,971)
392,110
(1,362,861)
Debt due after one year
(834,085)
271,745
(562,340)
------------
---------
------------
( 2,343,045)
519,709
( 1,823,336)
------------
---------
------------
25. Operating Leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
28,048
21,968
--------
--------
26. Related Party Transactions
Included in creditors is £218,051 (2023:£483,460) owed to the directors' pension scheme. The interest charge for the year was £26,401 (2023:£53,361)