Company registration number 01356065 (England and Wales)
WEST ONE BATHROOMS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
WEST ONE BATHROOMS LIMITED
COMPANY INFORMATION
Directors
K A S Waters
D J Waters
Secretary
S Stanley
Company number
01356065
Registered office
Unit D Davis Road Industrial Park
Davis Road
Chessington
Surrey
KT9 1TQ
Auditor
M J Bushell Audit LLP
8 High Street
Brentwood
Essex
CM14 4AB
WEST ONE BATHROOMS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 24
WEST ONE BATHROOMS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present the strategic report and financial statements for the year ended 30 June 2024.

Review of the business

The business increased its share of the market and traded well, focusing on enhancing gross margin, which improved 4%.

 

Despite the retail sector encountering continuing issues, the client base remains loyal and robust, keeping net profits on par with last year, despite large investments by the Directors for the future.

 

Staff levels were increased across both sales and administration sectors, to ensure increased levels of support & service for the company’s growing customer base now and in the future.

 

A complete refurbishment was undertaken at the Battersea Flagship Showroom, resulting in accolades from the Industry, including the “Showroom of the Year Award” from KBB in March 2024.

 

The West One Brand continues to grow within the luxury sector on the high street and since last year the business continues to increase its levels of quotations and orders over previous years.

 

 

 

By order of the board

S Stanley
Secretary
10 January 2025
WEST ONE BATHROOMS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company continued to be that of supplying bespoke bathrooms.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £930,000. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

K A S Waters
D J Waters
Auditor

M J Bushell Audit LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Strategic Report

The company has chosen, in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, to set out in the company's Strategic Report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. This includes information that would have been included in the business review and the principal risks

and uncertainties.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

By order of the board
S Stanley
Secretary
10 January 2025
WEST ONE BATHROOMS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

WEST ONE BATHROOMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WEST ONE BATHROOMS LIMITED
- 4 -
Opinion

We have audited the financial statements of West One Bathrooms Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

WEST ONE BATHROOMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WEST ONE BATHROOMS LIMITED (CONTINUED)
- 5 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Risks identified
Audit response
Management override of controls

Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims.

 

Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

 

Reviewing minutes of meetings of those charged with governance.

Non compliance with laws and regulations

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

 

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

WEST ONE BATHROOMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WEST ONE BATHROOMS LIMITED (CONTINUED)
- 6 -
Corné von Wielligh ACA
Senior Statutory Auditor
For and on behalf of M J Bushell Audit LLP
13 January 2025
Chartered Accountants
Statutory Auditor
8 High Street
Brentwood
Essex
CM14 4AB
WEST ONE BATHROOMS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
25,561,043
27,759,916
Cost of sales
(15,254,808)
(17,500,774)
Gross profit
10,306,235
10,259,142
Distribution costs
(3,986,572)
(3,876,681)
Administrative expenses
(4,796,498)
(4,575,410)
Other operating income
48,000
52,850
Operating profit
4
1,571,165
1,859,901
Interest payable and similar expenses
7
(122,438)
(78,360)
Profit before taxation
1,448,727
1,781,541
Tax on profit
8
(385,000)
(446,144)
Profit for the financial year
1,063,727
1,335,397

The profit and loss account has been prepared on the basis that all operations are continuing operations.

WEST ONE BATHROOMS LIMITED
BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
85,334
142,329
Tangible assets
11
1,432,330
1,363,229
1,517,664
1,505,558
Current assets
Stocks
12
9,367,898
9,102,894
Debtors
13
2,944,110
3,755,143
Cash at bank and in hand
155,549
201,479
12,467,557
13,059,516
Creditors: amounts falling due within one year
14
(10,065,215)
(10,726,472)
Net current assets
2,402,342
2,333,044
Total assets less current liabilities
3,920,006
3,838,602
Creditors: amounts falling due after more than one year
15
(431,935)
(517,462)
Provisions for liabilities
Deferred tax liability
18
220,000
220,000
(220,000)
(220,000)
Net assets
3,268,071
3,101,140
Capital and reserves
Called up share capital
20
30,000
30,000
Share premium account
31,043
31,043
Profit and loss reserves
3,207,028
3,040,097
Total equity
3,268,071
3,101,140

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 9 January 2025 and are signed on its behalf by:
K A S Waters
D J Waters
Director
Director
Company registration number 01356065 (England and Wales)
WEST ONE BATHROOMS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2022
30,000
31,043
2,369,700
2,430,743
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
1,335,397
1,335,397
Dividends
9
-
-
(665,000)
(665,000)
Balance at 30 June 2023
30,000
31,043
3,040,097
3,101,140
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
1,063,727
1,063,727
Dividends
9
-
-
(930,000)
(930,000)
Other movements
-
-
33,204
33,204
Balance at 30 June 2024
30,000
31,043
3,207,028
3,268,071
WEST ONE BATHROOMS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
1,864,339
645,831
Interest paid
(122,438)
(78,360)
Income taxes paid
(458,266)
(242,743)
Net cash inflow from operating activities
1,283,635
324,728
Investing activities
Purchase of intangible assets
-
0
(65,605)
Purchase of tangible fixed assets
(379,412)
(433,979)
Proceeds from disposal of tangible fixed assets
(208)
20,914
Proceeds from asset transfer
33,204
-
0
Net cash used in investing activities
(346,416)
(478,670)
Financing activities
Repayment of bank loans
(870)
(264,313)
Payment of finance leases obligations
6,344
138,525
Dividends paid
(930,000)
(665,000)
Net cash used in financing activities
(924,526)
(790,788)
Net increase/(decrease) in cash and cash equivalents
12,693
(944,730)
Cash and cash equivalents at beginning of year
(60,665)
884,065
Cash and cash equivalents at end of year
(47,972)
(60,665)
Relating to:
Cash at bank and in hand
155,549
201,479
Bank overdrafts included in creditors payable within one year
(203,521)
(262,144)
WEST ONE BATHROOMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
1
Accounting policies
Company information

West One Bathrooms Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit D Davis Road Industrial Park, Davis Road, Chessington, Surrey, KT9 1TQ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
20% Straight line
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

WEST ONE BATHROOMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Short Leasehold Property
Straight line over the life of the lease
Plant and machinery
5 - 25% Straight line
Motor vehicles
20% Straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Cost is calculated using actual cost method.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

WEST ONE BATHROOMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

WEST ONE BATHROOMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

WEST ONE BATHROOMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

WEST ONE BATHROOMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Sales of goods
25,561,043
27,759,916
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
24,678,792
26,826,351
Overseas
882,251
933,565
25,561,043
27,759,916
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(18,178)
26,942
Fees payable to the company's auditor for the audit of the company's financial statements
26,950
23,000
Depreciation of owned tangible fixed assets
310,311
321,480
Loss on disposal of tangible fixed assets
208
351
Amortisation of intangible assets
56,995
51,348
Operating lease charges
1,041,487
1,020,702
WEST ONE BATHROOMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Sales and distribution
42
55
Warehouse
6
6
Administration
34
24
Total
82
85

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,410,559
3,997,916
Social security costs
535,258
462,165
Pension costs
151,541
121,978
5,097,358
4,582,059
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
189,765
171,553
Company pension contributions to defined contribution schemes
58,252
40,000
248,017
211,553

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
46,110
51,101
Other finance costs:
Interest on finance leases and hire purchase contracts
23,664
3,695
Other interest
52,664
23,564
122,438
78,360
WEST ONE BATHROOMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
385,000
346,144
Deferred tax
Origination and reversal of timing differences
-
0
100,000
Total tax charge
385,000
446,144

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,448,727
1,781,541
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
362,182
365,127
Tax effect of expenses that are not deductible in determining taxable profit
7,845
75,109
Permanent capital allowances in excess of depreciation
16,827
(101,146)
Change in deferred tax provision
-
0
100,000
Other tax adjustments
(1,854)
7,054
Taxation charge for the year
385,000
446,144
9
Dividends
2024
2023
£
£
Interim paid
930,000
665,000
WEST ONE BATHROOMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
10
Intangible fixed assets
Software
£
Cost
At 1 July 2023 and 30 June 2024
213,169
Amortisation and impairment
At 1 July 2023
70,840
Amortisation charged for the year
56,995
At 30 June 2024
127,835
Carrying amount
At 30 June 2024
85,334
At 30 June 2023
142,329
11
Tangible fixed assets
Short Leasehold Property
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2023
707,453
2,151,830
511,800
3,371,083
Additions
-
0
281,494
97,918
379,412
At 30 June 2024
707,453
2,433,324
609,718
3,750,495
Depreciation and impairment
At 1 July 2023
488,977
1,382,283
136,594
2,007,854
Depreciation charged in the year
35,814
162,342
112,155
310,311
At 30 June 2024
524,791
1,544,625
248,749
2,318,165
Carrying amount
At 30 June 2024
182,662
888,699
360,969
1,432,330
At 30 June 2023
218,476
769,547
375,206
1,363,229

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Motor vehicles
360,969
375,206
WEST ONE BATHROOMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
9,367,898
9,102,894
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,085,310
1,858,429
Amounts owed by group undertakings
1,237,307
1,037,307
Other debtors
105,786
115,191
Prepayments and accrued income
515,707
744,216
2,944,110
3,755,143
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
406,551
432,236
Obligations under finance leases
17
140,869
82,806
Payments received on account
3,824,588
4,161,199
Trade creditors
3,661,214
4,392,317
Amounts owed to group undertakings
319,012
114,711
Corporation tax
255,734
329,000
Other taxation and social security
515,475
341,179
Other creditors
866,871
616,225
Accruals and deferred income
74,901
256,799
10,065,215
10,726,472
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
227,282
261,090
Obligations under finance leases
17
204,653
256,372
431,935
517,462

Obligations under finance leases of £345,522 (2023 : £339,178) are secured by fixed charges on the assets concerned.

WEST ONE BATHROOMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
16
Loans and overdrafts
2024
2023
£
£
Bank loans
430,312
431,182
Bank overdrafts
203,521
262,144
633,833
693,326
Payable within one year
406,551
432,236
Payable after one year
227,282
261,090
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
140,869
82,806
In two to five years
204,653
256,372
345,522
339,178

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

18
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
ACAs
220,000
220,000
There were no deferred tax movements in the year.

The deferred tax liability set out above is expected to remain consistent and relates to accelerated capital allowances that are expected to mature within the same period.

WEST ONE BATHROOMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
151,541
121,978

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
30,000
30,000
30,000
30,000

The company has one class of ordinary share which carry equal voting and dividend rights. In the event of winding or disposal they also carry equal rights over any surplus of assets. They do not confer any rights of redemption.

21
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for its leasehold properties.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
496,364
601,364
Between two and five years
1,684,573
1,600,773
In over five years
376,841
724,205
2,557,778
2,926,342
22
Directors' transactions

Advances or credits have been granted by the company to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
D J Waters
10.25
241,688
(343,211)
28,929
455,313
382,719
K A S Waters
10.25
232,382
(327,477)
26,393
455,313
386,611
474,070
(670,688)
55,322
910,626
769,330
WEST ONE BATHROOMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
22
Directors' transactions
(Continued)
- 23 -

Interest was charged on the director's loan accounts at a rate of 5% + BOE rate.

23
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
435,144
468,509
Other information

The company has taken advantage of the exemption available in accordance with FRS 102 'Related party disclosures' 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.

24
Ultimate controlling party

The ultimate parent company is West One Bathrooms Group Limited, a company incorporated in England and Wales. West One Bathrooms Group Limited is controlled by D J Waters and K A S Waters, who are both directors of the company.

 

West One Bathrooms Group Limited prepares consolidated accounts and copies are available upon request from Unit D, Davis Road, Chessington, KT9 1TQ.

 

The immediate parent company is Queenstown Bathrooms Limited by virtue of its shareholding.

25
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,063,727
1,335,398
Adjustments for:
Taxation charged
385,000
446,144
Finance costs
122,438
78,360
Loss on disposal of tangible fixed assets
208
351
Amortisation and impairment of intangible assets
56,995
51,348
Depreciation and impairment of tangible fixed assets
310,311
321,480
Movements in working capital:
Increase in stocks
(265,004)
(2,138,870)
Decrease/(increase) in debtors
811,033
(817,958)
(Decrease)/increase in creditors
(620,369)
1,369,578
Cash generated from operations
1,864,339
645,831
WEST ONE BATHROOMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
26
Analysis of changes in net debt
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
201,479
(45,930)
155,549
Bank overdrafts
(262,144)
58,623
(203,521)
(60,665)
12,693
(47,972)
Borrowings excluding overdrafts
(431,182)
870
(430,312)
Obligations under finance leases
(339,178)
(6,344)
(345,522)
(831,025)
7,219
(823,806)
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