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REGISTERED NUMBER: 05391325 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2024

FOR

ASHWOOD DESIGNS LIMITED

ASHWOOD DESIGNS LIMITED (REGISTERED NUMBER: 05391325)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 16


ASHWOOD DESIGNS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 30 APRIL 2024







DIRECTORS: R J Smart
S Youngs
R Patrick



REGISTERED OFFICE: Robertstown House
Aberdare Business Park
Robertstown
Aberdare
CF44 8ER



REGISTERED NUMBER: 05391325 (England and Wales)



AUDITORS: Baker Knoyle Audit Limited
Chartered Certified Accountants
Orbit Business Centre
Rhydycar Business Park
Merthyr Tydfil
CF48 1DL



BANKERS: Barclays Bank PLC
12/13 Victoria Square
Aberdare
CF44 7HY

ASHWOOD DESIGNS LIMITED (REGISTERED NUMBER: 05391325)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024

The directors present their strategic report for the year ended 30 April 2024.

REVIEW OF BUSINESS
The results for the financial year are set out in the profit and loss account on page 9 and the financial position of the company at 30th April 2024 is shown on page 11.

The principal activity of the company is the design and manufacture of upholstered furniture.

After significant growth since 2021 the business stabilised in FY24 with turnover of £28.0m, compared to £30.4m in FY23, reflecting market conditions and demand. Gross margin improved by ~ 1.5ppts to 29.1% in FY24 thanks to efficiencies in operations and cost control.

In June 2023 the ultimate parent of Ashwood Designs Limited was acquired by the Dunham Massey Investment Group, and has enjoyed a successful first year under new ownership.

Linked to the acquisition were exceptional costs of £422.5k incurred in FY24 on professional and finance facility charges which are non-recurring. After adjusting for these exceptional costs, pre-tax profits remained strong in FY24.

PRINCIPAL RISKS AND UNCERTAINTIES
Raw material costs and supply chain volatility remain key risks facing the business. Volatility in shipping leads times and costs from the Far East have been a concern during the year impacting margins and delivery performance.

The availability of skilled staff has is a key risk for the business. During the year Ashwood recruited trainees into dedicated training areas in our upholstery and sewing departments.

In FY24 with the sale of the business the importance of a successful succession from the former owner directors have been recognised and addressed, with the strengthening of the management team and board.

The directors will continually monitor the principal and other risks and uncertainties for the business.

FINANCIAL KEY PERFORMANCE INDICATORS
2024 2023

Turnover £28,017,087 £30,366,118

Gross Profit/Turnover 29.15% 27.56%

Pre Tax Profit/Turnover* 5.6% 7.6%

* FY24 excludes exceptional non-recurring costs of £422.5k

Given the known impacts upon margin during the year the directors are pleased with the results at the year-end as all key performance indicators are in line with their expectations.


ASHWOOD DESIGNS LIMITED (REGISTERED NUMBER: 05391325)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024

DEVELOPMENTS & PERFORMANCE
The business continues to invest heavily in design new model development to provide industry leading products incorporating function and motion.

The directors are proud that 2025 will mark the 20th anniversary of the Ashwood business. The company's order book continues to be strong and the directors are optimistic that the business will continue to trade profitably for the foreseeable future.

ON BEHALF OF THE BOARD:



R Patrick - Director


9 January 2025

ASHWOOD DESIGNS LIMITED (REGISTERED NUMBER: 05391325)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 APRIL 2024

The directors present their report with the financial statements of the company for the year ended 30 April 2024.

DIVIDENDS
Interim dividends of £6.645 per share (15/12/2023) and £33.223 per share (30/04/2024) were issued during the period totalling £1,200,000.

The total distribution of dividends for the year ended 30th April 2024 was £1,200,000.The directors recommend that no final dividend be paid.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 May 2023 to the date of this report.

R J Smart
S Youngs

Other changes in directors holding office are as follows:

A R Howitt - appointed 14 June 2023
R Patrick - appointed 14 June 2023

A R Howitt ceased to be a director after 30 April 2024 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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:

-select suitable accounting policies and then apply them consistently;
-make judgements 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ASHWOOD DESIGNS LIMITED (REGISTERED NUMBER: 05391325)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 APRIL 2024


AUDITORS
The auditors, Baker Knoyle Audit Limited, have expressed their willingness to be re-appointed at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





R Patrick - Director


9 January 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ASHWOOD DESIGNS LIMITED

Opinion
We have audited the financial statements of Ashwood Designs Limited (the 'company') for the year ended 30 April 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 30 April 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ASHWOOD DESIGNS LIMITED


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 Report of the Directors.

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.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

Auditors' 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 a Report of the Auditors 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:

- We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the Officers and other management (as required by auditing standards).
- We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting (including related trade union legislation) and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
- With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the Officers.
- We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
- We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ASHWOOD DESIGNS LIMITED


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 a Report of the Auditors 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.




Richard Phillips FCCA (Senior Statutory Auditor)
for and on behalf of Baker Knoyle Audit Limited
Chartered Certified Accountants
Orbit Business Centre
Rhydycar Business Park
Merthyr Tydfil
CF48 1DL

9 January 2025

ASHWOOD DESIGNS LIMITED (REGISTERED NUMBER: 05391325)

INCOME STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024

2024 2023
Notes £    £    £    £   

TURNOVER 28,017,087 30,366,118

Cost of sales 19,849,502 21,996,733
GROSS PROFIT 8,167,585 8,369,385

Distribution costs 1,595,978 1,662,224
Administrative expenses 5,175,506 4,388,948
6,771,484 6,051,172
OPERATING PROFIT 4 1,396,101 2,318,213

Interest receivable and similar income 48 -
1,396,149 2,318,213

Interest payable and similar expenses 7 238,579 4,665
PROFIT BEFORE TAXATION 1,157,570 2,313,548

Tax on profit 8 (247,568 ) 452,279
PROFIT FOR THE FINANCIAL YEAR 1,405,138 1,861,269

ASHWOOD DESIGNS LIMITED (REGISTERED NUMBER: 05391325)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 1,405,138 1,861,269


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,405,138

1,861,269

ASHWOOD DESIGNS LIMITED (REGISTERED NUMBER: 05391325)

BALANCE SHEET
30 APRIL 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 245,648 212,047

CURRENT ASSETS
Stocks 11 2,343,654 1,999,975
Debtors 12 11,159,386 6,400,316
Cash at bank and in hand 58,770 832,283
13,561,810 9,232,574
CREDITORS
Amounts falling due within one year 13 8,572,950 4,537,786
NET CURRENT ASSETS 4,988,860 4,694,788
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,234,508

4,906,835

CREDITORS
Amounts falling due after more than one
year

14

(102,465

)

-

PROVISIONS FOR LIABILITIES 17 (61,136 ) (41,066 )
NET ASSETS 5,070,907 4,865,769

CAPITAL AND RESERVES
Called up share capital 18 30,100 30,100
Retained earnings 19 5,040,807 4,835,669
SHAREHOLDERS' FUNDS 5,070,907 4,865,769

The financial statements were approved by the Board of Directors and authorised for issue on 9 January 2025 and were signed on its behalf by:





R Patrick - Director


ASHWOOD DESIGNS LIMITED (REGISTERED NUMBER: 05391325)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 May 2022 30,100 3,154,400 3,184,500

Changes in equity
Dividends - (180,000 ) (180,000 )
Total comprehensive income - 1,861,269 1,861,269
Balance at 30 April 2023 30,100 4,835,669 4,865,769

Changes in equity
Dividends - (1,200,000 ) (1,200,000 )
Total comprehensive income - 1,405,138 1,405,138
Balance at 30 April 2024 30,100 5,040,807 5,070,907

ASHWOOD DESIGNS LIMITED (REGISTERED NUMBER: 05391325)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (2,329,989 ) 1,910,007
Interest paid (238,579 ) (4,665 )
Tax paid (479,757 ) (196,878 )
Net cash from operating activities (3,048,325 ) 1,708,464

Cash flows from investing activities
Purchase of tangible fixed assets (113,357 ) (72,326 )
Sale of tangible fixed assets (572 ) -
Interest received 48 -
Net cash from investing activities (113,881 ) (72,326 )

Cash flows from financing activities
New loans in year 150,000 -
Loan repayments in year (50,086 ) -
Equity dividends paid (1,200,000 ) (180,000 )
Net cash from financing activities (1,100,086 ) (180,000 )

(Decrease)/increase in cash and cash equivalents (4,262,292 ) 1,456,138
Cash and cash equivalents at beginning of
year

2

832,283

(623,855

)

Cash and cash equivalents at end of year 2 (3,430,009 ) 832,283

ASHWOOD DESIGNS LIMITED (REGISTERED NUMBER: 05391325)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2024 2023
£    £   
Profit before taxation 1,157,570 2,313,548
Depreciation charges 79,756 63,455
Loss on disposal of fixed assets 572 -
Movement of balance to Group Undertaking (6,186,985 ) 42,951
Finance costs 238,579 4,665
Finance income (48 ) -
(4,710,556 ) 2,424,619
(Increase)/decrease in stocks (343,679 ) 128,955
Decrease/(increase) in trade and other debtors 1,732,017 (885,979 )
Increase in trade and other creditors 992,229 242,412
Cash generated from operations (2,329,989 ) 1,910,007

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 April 2024
30.4.24 1.5.23
£    £   
Cash and cash equivalents 58,770 832,283
Bank overdrafts (3,488,779 ) -
(3,430,009 ) 832,283
Year ended 30 April 2023
30.4.23 1.5.22
£    £   
Cash and cash equivalents 832,283 227,219
Bank overdrafts - (851,074 )
832,283 (623,855 )


ASHWOOD DESIGNS LIMITED (REGISTERED NUMBER: 05391325)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024

3. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.5.23 Cash flow At 30.4.24
£    £    £   
Net cash
Cash at bank and in hand 832,283 (773,513 ) 58,770
Bank overdrafts - (3,488,779 ) (3,488,779 )
832,283 (4,262,292 ) (3,430,009 )
Debt
Debts falling due within 1 year - (24,801 ) (24,801 )
Debts falling due after 1 year - (102,465 ) (102,465 )
- (127,266 ) (127,266 )
Total 832,283 (4,389,558 ) (3,557,275 )

ASHWOOD DESIGNS LIMITED (REGISTERED NUMBER: 05391325)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

1. STATUTORY INFORMATION

Ashwood Designs Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
Dilapidations

Provision for dilapidations are recognised on a lease by lease basis and are based on the company's best estimate of the likely cash outflow.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 33% on cost, 20% on cost and 10% on cost
Fixtures and fittings - 33% on cost, 20% on cost and 10% on cost
Computer equipment - 33% on cost and 20% on cost

Tangible assets are initially measured at cost. After initial recognition, tangible assets are measured at cost less any accumulated depreciation and any accumulated impairment losses.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in profit and loss.

Stocks
Stock comprises of raw materials, finished goods and work in progress and is valued at the lower of cost or net realisable value, after making due allowance for obsolete and slow moving items.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete the sale. The impairment loss is recognised immediately in profit or loss.

ASHWOOD DESIGNS LIMITED (REGISTERED NUMBER: 05391325)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value at the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received. However, if the arrangements of a short term instrument constitute a financial transaction, like the payment of a trade debt deferred beyond normal business terms or not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an assets carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

ASHWOOD DESIGNS LIMITED (REGISTERED NUMBER: 05391325)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 6,861,588 6,837,791
Social security costs 541,797 519,177
Other pension costs 166,078 101,870
7,569,463 7,458,838

The average number of employees during the year was as follows:
2024 2023

Operational 191 198
Management and Administration 33 35
Directors 2 -
226 233

2024 2023
£    £   
Directors' remuneration 161,333 -
Directors' pension contributions to money purchase schemes 63,332 -

4. OPERATING PROFIT

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

2024 2023
£    £   
Hire of plant and machinery 143,445 284,300
Depreciation - owned assets 79,756 63,456
Loss on disposal of fixed assets 572 -
Foreign exchange differences 33,163 (19,064 )
Other operating leases 303,416 255,096

5. AUDITORS' REMUNERATION
2024 2023
£    £   
Fees payable to the company's auditors for the audit of the company's
financial statements

14,350

13,500
All other services - 17,547

6. EXCEPTIONAL ITEMS
2024 2023
£    £   
Exceptional items (422,500 ) -

ASHWOOD DESIGNS LIMITED (REGISTERED NUMBER: 05391325)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

The amounts contained within the exceptional items are Professional fees and credit charges relating to the implementation of the new factoring facility, along with the exit fees relating to the old factoring facility, these events were triggered by the sale of Ashwood Designs Limited and Hulst Limited to Dunham Massey Investment Group No.3 Limited and are not expected to reoccur.

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest 200,346 4,665
Bank loan interest 38,233 -
238,579 4,665

8. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax (267,638 ) 446,813

Deferred tax 20,070 5,466
Tax on profit (247,568 ) 452,279

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 1,157,570 2,313,548
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19.493%)

289,393

450,980

Effects of:
Expenses not deductible for tax purposes 738 630
Capital allowances in excess of depreciation (8,461 ) (4,797 )
Adjustments to tax charge in respect of previous periods (549,309 ) -
Deferred Tax 20,071 5,466

Total tax (credit)/charge (247,568 ) 452,279

9. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Interim 1,200,000 180,000

ASHWOOD DESIGNS LIMITED (REGISTERED NUMBER: 05391325)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

10. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Computer
machinery fittings equipment Totals
£    £    £    £   
COST
At 1 May 2023 263,434 133,845 43,308 440,587
Additions 58,875 32,472 22,010 113,357
At 30 April 2024 322,309 166,317 65,318 553,944
DEPRECIATION
At 1 May 2023 180,491 38,398 9,651 228,540
Charge for year 31,996 31,693 16,067 79,756
At 30 April 2024 212,487 70,091 25,718 308,296
NET BOOK VALUE
At 30 April 2024 109,822 96,226 39,600 245,648
At 30 April 2023 82,943 95,447 33,657 212,047

11. STOCKS
2024 2023
£    £   
Raw materials 1,793,826 1,426,534
Work-in-progress 417,120 320,235
Finished goods 132,708 253,206
2,343,654 1,999,975

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 4,403,331 6,345,264
Amounts owed by group undertakings 6,163,374 -
Other debtors 150,000 -
Tax 327,713 -
Prepayments 114,968 55,052
11,159,386 6,400,316

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 15) 3,513,580 -
Trade creditors 3,301,883 2,352,058
Amounts owed to group undertakings - 23,611
Tax - 447,034
Social security and other taxes 119,235 143,519
VAT 440,085 429,970
Other creditors & accruals 1,198,167 1,141,594
8,572,950 4,537,786

ASHWOOD DESIGNS LIMITED (REGISTERED NUMBER: 05391325)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans (see note 15) 102,465 -

15. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 3,488,779 -
Bank loans 24,801 -
3,513,580 -

Amounts falling due between two and five years:
Bank loans - 2-5 years 102,465 -

In June 2023 the company secured a loan of £150,000 and a new invoice discounting facility.

These borrowings were secured via a fixed and floating charge on the assets of Ashwood Designs Ltd and Hulst Ltd

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 235,440 261,311
Between one and five years 137,133 357,142
372,573 618,453

17. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 61,136 41,066

Deferred
tax
£   
Balance at 1 May 2023 41,066
Accelerated capital allowances 20,070
Movement in provision
Balance at 30 April 2024 61,136

ASHWOOD DESIGNS LIMITED (REGISTERED NUMBER: 05391325)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
30,100 Ordinary £1 30,100 30,100

19. RESERVES
Retained
earnings
£   

At 1 May 2023 4,835,669
Profit for the year 1,405,138
Dividends (1,200,000 )
At 30 April 2024 5,040,807

20. ULTIMATE PARENT COMPANY

Dunham Massey Investment Group No3 Ltd is regarded by the directors as being the company's ultimate parent company.

Ashwood Designs Ltd is controlled by Hulst Ltd which owns 100% of its share capital, on the 14 June 2023 Hulst Ltd's capital was purchased by Dunham Massey Investment Group No3 Ltd who now owns 100% of the share capital of Hulst.

21. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
2024 2023
£    £   
Amount due from related party 150,000 -

During the year a loan of £100,000 was made to Metaliform Limited and a £50,000 loan was made to Dunham Massey Investment Group Limited, both companies are not members of the same group as Ashwood Designs, but are associated companies with shareholders and directors in common.These loans were made interest-free.