Company No:
Contents
DIRECTORS | Jonathan G Hutchings |
Julia A Little | |
Timothy C Little |
REGISTERED OFFICE | Grenson House |
C2 | |
Crown Way | |
Rushden | |
NN10 6BS | |
United Kingdom |
COMPANY NUMBER | 07188320 (England and Wales) |
AUDITOR | Dixon Wilson Audit Services LLP, Statutory Auditor |
22 Chancery Lane | |
London | |
WC2A 1LS |
The directors present their Strategic Report for the financial year ended 31 March 2024.
REVIEW OF THE BUSINESS
The Company’s principal activity during the year was that of shoe manufacture, wholesale and retail. The Company retails footwear and accessories at the high end of the market and wholesales worldwide.
The war in Ukraine continued to create economic uncertainty. Matters were further complicated by the continuing effects of Brexit on supply chains.
Sales fell in the year to £5,738,274 (2023- £6,964,858). Increased administrative expenses and the writing off of goodwill resulted in a pre-tax loss of £1,047,900 (2023 - £328,538).
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks facing the company revolve around the continued uncertainties in the economy which have been exacerbated by the effects of Brexit and the continuation of the war in Ukraine. The war has continued to cause uncertainty and costs such as freight, energy, materials etc. are still high. This looks set to continue at least until the end of the current financial year.
Approved by the Board of Directors and signed on its behalf by:
Timothy C Little
Director |
The directors present their annual report on the affairs of the Company, together with the financial statements and auditor's report, for the financial year ended 31 March 2024.
PRINCIPAL ACTIVITIES
GOING CONCERN
DIRECTORS
The directors, who served during the financial year and to the date of this report except as noted, were as follows:
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Financial Instruments
*Objectives and policies*
The company's financial instruments include bank accounts for day-to-day working capital and other financial assets and liabilities arising from its operations such as trade debtors and trade creditors.
*Price risk, credit risk, liquidity risk and cash flow risk*
The company manages its cash and borrowing requirements to ensure it has sufficient liquid resources to meet the operating needs of the business.
All customers who wish to trade on credit terms are subject to credit verification procedures. Receivable balances are monitored on an on-going basis and provision is made for doubtful debts where necessary.
AUDITOR
Each of the persons who is a director at the date of approval of this report confirms that:
• So far as the director is aware, there is no relevant audit information of which the company's auditor is unaware; and
• The director has taken all the steps that he/she ought to have taken as a director in order to make himself/herself
aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
Approved by the Board of Directors and signed on its behalf by:
Timothy C Little
Director |
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), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that financial period.
In preparing these financial statements, the directors are required to:
* Select suitable accounting policies and then apply them consistently;
* Make judgements and accounting estimates that are reasonable and prudent;
* State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
* Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. The directors 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.
Report on the audit of the financial statements
We have audited the financial statements of GRENSON LTD (the ‘company’) for the year ended 31 March 2024 which comprise the profit and loss account, balance sheet, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:
• Give a true and fair view of the state of the company’s affairs as at 31 March 2024 and of its loss 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.
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).
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 financialstatements section of our report.
We are independent of the company in accordance with the ethical requirements thatare 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.
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 financialstatements 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 obtainedin 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.
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 areconsidered 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:
We gained an understanding of the legal and regulatory framework applicable to the company by considering, amongst other things, the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the assessed level of risk, but recognised that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, UK Company Law, UK tax legislation, UK Employment Law and Health and Safety regulations and the UK General Data Protection Regulation.
As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by management that represented a risk of material misstatement due to fraud.
There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Report on other legal and regulatory requirements
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 Directors’ Report has been prepared in accordance with applicable legal requirements.
In the light of our 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 and Directors' Report.
We have nothing to report in respect of the following matters where 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.
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.
For and on behalf of
Statutory Auditor
London
WC2A 1LS
Note | 2024 | 2023 | ||
£ | £ | |||
Turnover | 2 |
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Cost of sales | (
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Gross profit |
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Distribution costs | (
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Administrative expenses | (
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Other operating income | 3 |
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Operating loss | (
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Interest receivable and similar income | 4 |
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Loss before taxation | 5 | (
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Tax on loss | 9 |
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Loss for the financial year | (
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Note | 2024 | 2023 | ||
£ | £ | |||
Fixed assets | ||||
Intangible assets | 11 |
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Tangible assets | 12 |
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84,030 | 407,105 | |||
Current assets | ||||
Stocks | 13 |
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Debtors | 14 |
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Cash at bank and in hand | 15 |
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4,074,776 | 4,796,010 | |||
Creditors: amounts falling due within one year | 16 | (
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Net current assets | 3,497,122 | 4,237,725 | ||
Total assets less current liabilities | 3,581,152 | 4,644,830 | ||
Provision for liabilities | 17 | (
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Net assets | 3,444,902 | 4,606,348 | ||
Capital and reserves | 19 | |||
Called-up share capital |
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Profit and loss account |
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Total shareholders' funds | 3,444,902 | 4,606,348 |
The financial statements of GRENSON LTD. (registered number:
Timothy C Little
Director |
Called-up share capital | Profit and loss account | Total | |||
£ | £ | £ | |||
At 01 April 2022 |
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Loss for the financial year |
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Total comprehensive loss |
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Dividends paid on equity shares (note 10) |
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At 31 March 2023 |
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At 01 April 2023 |
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Loss for the financial year |
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Total comprehensive loss |
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Dividends paid on equity shares (note 10) |
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At 31 March 2024 |
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2024 | 2023 | ||
£ | £ | ||
Net cash flows from operating activities (note 21) | (
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Cash flows from investing activities | |||
Purchase of plant and machinery | (
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Interest received |
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Net cash flows from investing activities |
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Cash flows from financing activities | |||
Interest paid | 0 | 0 | |
Dividends paid | (170,000) | (280,000) | |
Net cash flows from financing activities | (
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Net (decrease) in cash and cash equivalents | (
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Cash and cash equivalents at beginning of year |
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Cash and cash equivalents at end of year |
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Reconciliation to cash at bank and in hand: | |||
Cash at bank and in hand at end of year |
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Cash and cash equivalents at end of year |
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The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Grenson Ltd (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Grenson House, C2, Crown Way, Rushden, NN10 6BS, United Kingdom.
The principal activities are set out in the Directors Report.
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Financial Reporting Standard 102 (FRS 102) applicable in the UK and Republic of Ireland issued by the Financial Reporting Council.
The functional currency of Grenson Ltd is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates.
The financial statements have been prepared on a going concern basis.
The current economic conditions present increased risks for all businesses. In response to such conditions, the directors have carefully considered these risk, including an assessment of uncertainty on future trading projections for a period of at least 12 months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis.
Based on this assessment, the directors consider that the company maintains an appropriate level of liquidity, sufficient to meet the demands of the business including any capital and servicing obligations of external debt liabilities. In additions, the Company's assets are assessed for recoverability on a regular basis, and the directors consider that the Company is not exposed to losses on these assets which would affect their decisions to adopt a going concern basis.
Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of the current period. It is recognised in respect of all timing differences, with certain exceptions. Timing differences between taxable goods and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences.
Goodwill |
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Plant and machinery |
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Fixtures and fittings |
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Computer equipment |
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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.
The company as lessee
Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account.
Trade debtors are initially recognised at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as 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.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund. The company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution for service, the excess is recognised as a prepayment.
Turnover represents the fair value of goods/services provided to customers during the financial year excluding value added tax.
Breakdown by geographical market:
An analysis of the company's turnover by geographical market is set out below.
2024 | 2023 | ||
£ | £ | ||
United Kingdom | 4,055,186 | 4,622,302 | |
Europe | 600,175 | 704,460 | |
Rest of the world | 1,082,913 | 1,638,096 | |
5,738,274 | 6,964,858 |
2024 | 2023 | ||
£ | £ | ||
Loss on disposal of fixed assets | 0 | (4,982) | |
Other income | 3,650 | 9,257 | |
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2024 | 2023 | ||
£ | £ | ||
Interest receivable and similar income |
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Loss before taxation is stated after charging/(crediting):
2024 | 2023 | ||
£ | £ | ||
Depreciation of tangible fixed assets (note 12) |
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Amortisation of intangible assets (note 11) |
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Impairment of intangible assets (note 11) |
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Operating lease rentals |
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Foreign exchange losses |
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Loss on disposal of fixed assets |
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An analysis of the auditor's remuneration is as follows:
2024 | 2023 | ||
£ | £ | ||
Fees payable to the company’s auditor and its associates for the audit of the company's annual financial statements: | 16,500 | 15,750 | |
Total audit fees |
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2024 | 2023 | ||
Number | Number | ||
The average monthly number of employees (including directors) was: | |||
Production |
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Administration and support |
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Sales |
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Marketing |
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Distribution |
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Their aggregate remuneration comprised:
2024 | 2023 | ||
£ | £ | ||
Wages and salaries |
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Other retirement benefit costs |
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1,248,092 | 1,425,022 |
2024 | 2023 | ||
£ | £ | ||
Directors' emoluments |
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Remuneration of the highest paid director
2024 | 2023 | ||
£ | £ | ||
Remuneration | 168,096 | 183,200 | |
Employer contributions paid into the pension scheme | 4,622 | 4,896 | |
172,718 | 188,096 |
2024 | 2023 | ||
£ | £ | ||
Current tax on loss | |||
UK corporation tax |
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Deferred taxation - arising from accelerated capital allowances | (
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Adjustments in respect of the claiming of carried back loss relief | (
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Total current tax | (
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(
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Total tax on loss | (
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(
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2024 | 2023 | ||
£ | £ | ||
Amounts recognised as distributions to equity holders in the financial year: | |||
Interim dividend of £0.24 (2023 - £0.40) per ordinary share | 170,000 | 280,000 | |
Goodwill | Total | ||
£ | £ | ||
Cost | |||
At 01 April 2023 |
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At 31 March 2024 |
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Accumulated amortisation | |||
At 01 April 2023 |
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Impairment losses |
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At 31 March 2024 |
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Net book value | |||
At 31 March 2024 |
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At 31 March 2023 |
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Plant and machinery | Fixtures and fittings | Computer equipment | Total | ||||
£ | £ | £ | £ | ||||
Cost | |||||||
At 01 April 2023 |
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Additions |
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Disposals | (
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At 31 March 2024 |
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Accumulated depreciation | |||||||
At 01 April 2023 |
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Charge for the financial year |
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Disposals | (
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At 31 March 2024 |
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Net book value | |||||||
At 31 March 2024 |
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At 31 March 2023 |
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2024 | 2023 | ||
£ | £ | ||
Raw materials |
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Work in progress |
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Finished goods |
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2024 | 2023 | ||
£ | £ | ||
Trade debtors |
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Other debtors |
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Prepayments |
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2024 | 2023 | ||
£ | £ | ||
Cash at bank and in hand |
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2024 | 2023 | ||
£ | £ | ||
Trade creditors |
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Taxation and social security |
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VAT |
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Accruals |
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Other creditors |
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2024 | 2023 | ||
£ | £ | ||
Deferred tax |
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Other provisions |
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2024 | 2023 | ||
£ | £ | ||
At the beginning of financial year | (
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(
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Decrease/(increase) in existing provision |
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At the end of financial year | (
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(
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Deferred tax has arisen on accelerated capital allowances.
2024 | 2023 | ||
£ | £ | ||
Allotted, called-up and fully-paid | |||
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Presented as follows: | |||
Called-up share capital presented as equity | 700,000 | 700,000 |
The profit and loss reserve represents cumulative profits or losses, net of dividends paid and other adjustments.
Commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
2024 | 2023 | ||
£ | £ | ||
within one year |
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between one and five years |
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after five years |
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The amount of non-cancellable operating lease payments recognised as an expense during the year was £333,355 (2023 - £385,664).
2024 | 2023 | ||
£ | £ | ||
Operating loss | (
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Adjustment for: | |||
Depreciation and amortisation |
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Loss on sale of plant and equipment |
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Increase/(decrease) in provisions |
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Tax expense |
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Operating cash flows before movement in working capital | (
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Increase in stocks | (
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Decrease in debtors |
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Increase/(decrease) in creditors |
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Cash generated by operations | (
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Income taxes received |
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Net cash flows from operating activities | (
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Transactions with the entity’s directors (or members of its governing body)
Amounts owed by directors
The company paid rent on an arm's length basis of £22,081 (2023 - £39,000) to a trust of which one of the directors is a beneficiary. At the year end there was £nil (2023 - £nil) due to the trust.
The company also paid rent on an arm's length basis of £70,000 (2023 - £70,000) to one of the directors directly. At the year end there was £nil (2023 - £nil) due to the director.
The ultimate controlling parties are T C Little and J A Little, both directors and shareholders.