REGISTERED NUMBER: 14699880 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
FOR |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED |
REGISTERED NUMBER: 14699880 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
FOR |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 8 |
Consolidated Statement of Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED |
COMPANY INFORMATION |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Andrew Green LLB FCA |
AUDITORS: |
Chartered Accountants |
and Statutory Auditors |
34-40 High Street |
Wanstead |
London |
E11 2RJ |
BANKERS: | National Westminster Bank plc |
Chatham Rcsc |
Western Avenue |
Waterside Court |
Chatham |
Kent |
ME4 4RT |
PRINCIPAL BANKERS: |
Lutea House |
Warley Hill Business Park |
The Drive |
Great Warley |
Brentwood, Essex |
CM13 3BE |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
GROUP STRATEGIC REPORT |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
The directors present their strategic report of the company and the group for the period 2 March 2023 to 30 April 2024. |
REVIEW OF BUSINESS |
The Directors are pleased to report post acquisition the group has seen very strong performance in turnover and operating results for 2024. |
The Group's main activity was conducted from 23 operating branches and 2 distribution centers in the Southeast of England and the Midlands. The Group continues to invest in its people and opportunities arising in the marketplace, allowing the Group to continue expanding its branch network and grow turnover. |
The initial investment into the solar PV market proved difficult, with a fast-moving market and margins dropping due to new products being released regularly. The directors have since reconsidered the solar PV offering to make it more manageable and less of an impact from the market pressures. |
In July 23 the company performed a Management Buy Out (MBO), since then the new board of directors have concentrated on consolidating the business to growing turnover, maintain gross profit margins and improve efficiencies. A program of further development was considered, and these commenced in June 24, as detailed in the future developments report. The costs of the MBO, both in terms of one-off arrangement fees and ongoing financing costs lead to a fall in the profit before tax for the year in the trading company. |
The Directors are mindful whilst considering expansion opportunities of the financial and other resources at our disposal. Whilst some normality has returned to the UK economy there remains uncertainty within the economy which together with increasing interest rates makes it difficult for the Directors to evaluate opportunities for growth; however, the Directors continue to review and develop the existing branch network. They remain focused on efforts securing growth via investment in business development from existing or new teams. |
We continue to utilise volume discounts, maintain good purchasing practices and strong stock control procedures to remain competitive. |
As the holding company is dormant, and in order to provide meaningful and comparable date, the Directors have disclosed below the full year results for the trading subsidiary company. That Company's key performance indicators are as follows: |
2024 | 2023 |
£ | £ |
Turnover | 122,045,443 | 110,590,015 |
Gross profit | 28,055,419 | 26,204,686 |
Gross profit % | 22.98% | 23.80% |
Operating profit | 4,249,007 | 4,358,027 |
Adjusted EBITDA | 4,825,856 | 4,563,901 |
Profit/(Loss) before tax | 2,703,150 | 3,935,104 |
The net current assets of the trading subsidiary were £11.7m (2023: £6.9m) and net assets were £14.4m (2023: £12.6m) at the balance sheet date, reflecting its solid position from a solvency and liquidity point of view. This strong balance sheet is the foundation on which it and the group can withstand the impact of the current economic uncertainty and to continue to grow and prosper. |
The group net asset position was £6.9m when adjustments are made to remove pre-acquisition reserves and an amortisation charge of goodwill of £0.9m is reflected at group level (see note 9). |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
GROUP STRATEGIC REPORT |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the nature of the Group's strategy are subject to a number of risks. |
The Directors have set out below the principal risks facing the business. |
The Directors are of the opinion that a thorough risk management process is adopted which involves a formal review of all risks identified below. Where possible, processes are in place to mitigate such risks. |
Liquidity risk |
The Group makes use of an invoice discounting facility with its principal bankers in order to mitigate short term liquidity risk. The Directors continually monitor cash flow forecasts in order to further manage this risk over the short and medium term. |
Credit Risk |
As with many businesses, the Group is exposed to the credit risk of customers and their ability to pay debts on a timely basis. The Directors have continued to be prudent in status checks for new and existing customers, keeping debtor days as low as possible and limiting the dominance of any single customer in the overall turnover of the Group. The Group also makes use of credit insurance to further mitigate these risks. |
Price Risk and Competition |
The market in which the Group operates is highly competitive. As a result, the Group is subject to a high level of price sensitivities and ongoing pressures on margins as direct costs and overheads costs increase. Policies of assessing our pricing strategy, maintaining strong relationships with customers and suppliers and ongoing market research are in place to mitigate such risks. |
Economic Outlook |
In recent years there has been increased uncertainty in the wider UK economy due to the Coronavirus Pandemic and its impact on consumer spending. This has been exacerbated in the year with the ongoing war in Ukraine and global inflationary pressures that have created a "cost of living crisis" in the UK. |
Product Cost Inflation |
The Group leverages the supply chain system which is able to negotiate better purchasing terms, and work with our suppliers to improve supply chain efficiency and mitigate the risk of product cost inflation. There do remain significant challenges in this area as global uncertainty has hit the availability of products and have lead to delays in delivery times. Investing in certain stock lines and good stock management help mitigate this risk. |
Wages Cost Inflation |
The Group is affected by wage cost inflation and pressures within the labour market, as well as government decisions that impact the cost of employing people. The Group monitors the market to ensure compliance with labour market regulations, and maintains employment policies, remuneration and benefits packages that are designed to be competitive with other companies and recognise the value and contribution provided by employees, as well as providing colleagues with fulfilling career opportunities which offer progression. The Group regularly reviews pay and benefits. As with most UK based employers there remain ongoing challenges in terms of recruiting and retaining sufficiently capable staff. |
Other inflationary factors |
The Group is also subject to inflationary pressures across its cost base, particularly in the areas of fuel costs and energy. |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
GROUP STRATEGIC REPORT |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
SECTION 172(1) STATEMENT |
The Directors of the Company, and those of all UK companies, must act in accordance with a set of general duties. These duties are set out in Section 172 of the Companies Act 2006 which are summarised as follows: |
"A director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole, and in doing so have regard (amongst other matters) to: |
a. the likely consequences of any decisions in the long term; |
b. the interests of the company's employees; |
c. the need to foster the company's business relationships with suppliers, customers and others; |
d. the impact of the company's operations on the community and the environment; |
e. the desirability of the company maintaining a reputation for high standards of business conduct; and |
f. the need to act fairly as between the shareholders of the company." |
The following paragraphs summarise how the Directors fulfil their duties: |
Risk Management |
As we develop as a business so does the risk environment in which we operate becomes more complex. It is therefore vital that we effectively identify, evaluate, manage and mitigate risks that the business may encounter. We are continually evolving our approach to risk management. Details of the risks encountered by the business and the steps taken to mitigate these risks are detailed on page 3. |
Our people |
Our people are fundamental to the delivery and success of our operations. We aim to be a responsible employer in our approach to pay and benefits received by our employees. The health, safety and wellbeing of our people are also a major concern for the business and we try to ensure we manage and monitor these as closely as possible. For our business to succeed we need to manage our people's performance, develop and bring through talent whilst ensuring we operate as efficiently and as effectively as possible. For further details on employee engagement see page 6. |
Business Relationships |
In order to grow and develop our business we need to grow and develop our business relationships with our suppliers and strategic partners. This includes working with these partners to enhance the development of their products and services to our mutual benefit and having regular and open dialogue. |
Community and Environment |
It is important to the business that we interact responsibly with the communities in which we operate and the wider environment. We try to ensure we are as involved as much as possible in the local activities and work closely with local bodies to ensure that the community is best served. We try where possible to minimise our impact on the environment. Further details of initiatives in place are detailed in the SECR disclosures on page 6. |
High Standards of Business Conduct |
It is important to the business that we apply high standards of conduct in all areas in which we operate. This principle is closely monitored by the board and wider management team making sure the business behaves in a responsible manner in all activities it undertakes. |
Shareholders |
As a business we recognise the importance of continual and effective dialogue with our shareholders through open engagement. It is important for the business that shareholders understand our objectives so that they are clearly understood, feedback given and any questions or issues properly considered and dealt with. |
ON BEHALF OF THE BOARD: |
27 January 2025 |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
The directors present their report with the financial statements of the company and the group for the period 2 March 2023 to 30 April 2024. |
INCORPORATION |
The group was incorporated on 2 March 2023 . |
PRINCIPAL ACTIVITY |
The principal activity of the group in the period under review was that of the wholesale and retail sale of electrical goods. |
The principal activity of the Company was that of a holding company. |
CHANGE OF OWNERSHIP |
On 20 July 2023, as part of a leveraged management buy out, the holding company took 100% ownership of BEW Electrical Distributors Limited as part of a share sale and re-organisation. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 April 2024 (2023- £nil). |
FUTURE DEVELOPMENTS |
We remain pleased many of the Group's newer branches continue to perform very well, which is reassuring to the board in confirming their faith in expanding the branch structure. |
In June 2024 the Group employed five specialist staff to establish a site temporaries division within BEW Electrical Distributors Limited, these are products that not currently sold in any volumes and the directors believe this new division will enhance sales to existing customers and will introduce new business for both these new products and existing ranges to new customers. |
After increasing sales to a Glasgow based company working in London, the directors have appointed a manager position located in Glasgow to develop business in the city and surrounding areas. Sales generated are currently supported by the existing branch network and the decision to locate a branch in the city will be made once demand is known. |
The Group continues to develop sales of energy efficient and renewable energy products, this has seen significant investment in solar PV products over the last year. In August a specialist sales team was employed to start up and develop an air source heat pump division, this is an sector the directors see offering good growth potential as current fossil fuel powered heating is phased out in new buildings over the next five years. |
The existing branch network continues to expand with a new branch in the south coast area being planned to open at the end of the first quarter in 2025. |
The Directors will continue to evaluate opportunities that may present themselves, whilst always being mindful of financial and other resources at the Group's disposal. |
The Directors remain committed to the internal development of the Group and increasing gross margin and continue to look to attract new sales staff to work within the existing branch structure to generate increased sales revenue. |
The Board continues to reject many large orders due to the risk and uncertainty surrounding certain projects and the low margin they return. It is a strategic decision to avoid unnecessary risk, allowing the Group a better level of comfort and certainty. |
The Directors are very mindful of the current heightened threat from potential bad debts and have introduced added procedures to help mitigate such risk where possible. |
Overhead costs will continue to be monitored and reduced where appropriate or required. |
DIRECTORS |
The directors who have held office during the period from 2 March 2023 to the date of this report are as follows: |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
ENGAGEMENT WITH EMPLOYEES |
Diversity and inclusion |
The Group is fully committed to a policy of treating all existing employees and job applicants equally. Recruitment decisions and the progression of employees within the company are based on merit and not upon any consideration of race, colour, religion, disability, nationality, sex, sexual orientation, marital status or age. |
The Group gives full and fair consideration to applications for employment by disabled persons. In the event of |
employees becoming disabled whilst in service of the company, every effort is made to continue their employment by |
transfer to alternative duties, if required and by provision of such retraining as is appropriate. |
Learning and Development |
The Group provides employees with regular formal training sessions using e-learning and classroom based training course including apprenticeship and management development programmes in collaboration with the EDA Apprenticeship Scheme. To keep employees updated with developments within the Group, management uses a range of methods, including internal email communications, to inform and engage with employees on a regular basis. |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
Suppliers |
Our suppliers and strategic brand partners are fundamental to our business success. We value all of our relationships and foster long term agreements that benefit both parties. |
We expect all of our suppliers to comply with our standards, such as those relating to environmental responsibility, modern slavery, data protection, human rights and ethics. |
Customers |
Our customers are at the heart of everything we do as a Group and we try to ensure that we communicate with our customers on a regular basis using emails, websites and social media channels. The Group makes use of rebates to incentivize and discounts in order to offer competitive prices and to support our key customers. |
The Local Community |
The Group recognises its responsibility to the wider community in which its branches are based. We actively take part in community events and work with local representative bodies that help promote the areas in which the branches operate. These include charitable events and sponsorship of local sports and social clubs. |
STREAMLINED ENERGY AND CARBON REPORTING |
The Group has gathered the following information in respect of its energy consumption during the financial year to assess the company’s greenhouse gas emissions. The table below summarises our findings for the full year ended 30 April 2024, comparative figures are shown for the trading subsidiary in order to provide meaningful and useful data: |
2023/24 | 2022/23 |
Energy consumption used to calculate emissions (kwh) | 5,770,426 | 5,560,059 |
Energy consumption break down (kwh) |
Gas | 150,394 | 175,963 |
Electricity | 749,090 | 746,485 |
Transport Fuel | 4,870,942 | 4,637,612 |
Scope 1 emissions in metric tonnes CO2e |
Gas consumption | 27.07 | 31.67 |
Owned Transport | 1,216,.38 | 1,157.44 |
Total for Scope 1 | 1,243.45 | 1,189.11 |
Scope 2 emissions in metric tonnes CO2e |
Purchased electricity | 155.12 | 144.36 |
Total gross emissions in metric tonnes CO2e | 1,398.57 | 1,333.47 |
Intensity ratio Tonnes CO2e per £million turnover of the trading subsidiary for the year ended 30 April |
11.45 |
12.06 |
In presenting and reporting the above data, the Group has followed the 2023 HM Government Environmental Reporting Guidelines and had regard to Corporate Standard for GHG Reporting Protocol using the 2023 UK Government’s conversion factors for company reporting. |
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £million turnover. |
BEW Electrical Distributors Limited invests in a modern Euro6 compliant fleet of delivery vehicles which are fuel efficient and low CO2 emitting. The Group endeavours to maximise the use of each vehicle in making deliveries in an efficient manner and is accredited as a silver FORS member. |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
EV cars were offered as an alternative to fossil fuel vehicles, during the financial year the number of EV cars in use increased from sixteen the previous year to twenty five. |
The Group continues to evaluate EV vans to replace existing fossil fuelled vehicles, however limitations on range and payloads etc. continue to make the switch over impractical at the current time. The Group retains one EV van to cover local deliveries and act as evaluation vehicle in assessing the viability to take on more EV vans; however payloads remain an issue. |
Where possible smart meters are installed in premises operated by the company and energy efficient LED lighting installed across all locations. Occupation and motion sensors are also installed where practical in our premises. |
Whilst the Group's overall intensity ratio has reduced for the third year running this is due to increased turnover in the financial year. Total gross emissions increased slightly over the previous year; transport fuel Kwh increased, this increase in transport fuel is a result of more delivery vans engaged together with increased usage as business has continued to grow it operational branch structure. |
Gas usage decrease is due to relocation from older energy inefficient premises to more modern insulated and energy efficient premises, whilst the increase in electricity usage is due to new premises added to the company’s portfolio in the year. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
AUDITORS |
The auditors, THP Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED |
Opinion |
We have audited the financial statements of Bew Electrical Distributors (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 30 April 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement 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 group's and of the parent company affairs as at 30 April 2024 and of the group's profit for the period 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 group 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 group's and the parent 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 Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page seven, 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 group's and the parent 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 group or the parent 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: |
- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the Group through discussions with the directors and other management, and from our commercial knowledge and experience of the sector in which the Group operates; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Group, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the Group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was a susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statements disclosures to underlying supporting documentation; |
- enquiring of management as to actual and potential litigation and claims; |
- reviewing correspondence with HMRC and any other relevant figures as required; and |
- reviewed external websites for evidence of reporting obligations being met. |
Where a breach is noted, we discussed this with management and reviewed steps taken to ensure future compliance. We also assessed the disclosures made in the accounts in relation to such matters. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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 |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
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. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditors |
34-40 High Street |
Wanstead |
London |
E11 2RJ |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
Notes | £ |
TURNOVER | 91,534,082 |
Cost of sales | 70,492,518 |
GROSS PROFIT | 21,041,564 |
Administrative expenses | 18,860,455 |
2,181,109 |
Other operating income | 160,028 |
OPERATING PROFIT | 5 | 2,341,137 |
Interest receivable and similar income | 14,437 |
2,355,574 |
Interest payable and similar expenses | 6 | 1,173,830 |
PROFIT BEFORE TAXATION | 1,181,744 |
Tax on profit | 7 | 784,190 |
PROFIT FOR THE FINANCIAL PERIOD |
OTHER COMPREHENSIVE INCOME |
Freehold property revaluation | 162,000 |
Merger relief | 6,241,294 |
Income tax relating to components of other comprehensive income |
(1,966 |
) |
OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF INCOME TAX |
6,401,328 |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
6,798,882 |
Profit attributable to: |
Owners of the parent | 397,554 |
Total comprehensive income attributable to: |
Owners of the parent | 6,798,882 |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
CONSOLIDATED BALANCE SHEET |
30 APRIL 2024 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 10,429,307 |
Tangible assets | 10 | 5,255,909 |
Investments | 11 | - |
Investment property | 12 | 3,200,000 |
18,885,216 |
CURRENT ASSETS |
Stocks | 13 | 11,019,856 |
Debtors | 14 | 34,329,888 |
Cash at bank and in hand | 1,356,469 |
46,706,213 |
CREDITORS |
Amounts falling due within one year | 15 | 45,688,055 |
NET CURRENT ASSETS | 1,018,158 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
19,903,374 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(12,082,586 |
) |
PROVISIONS FOR LIABILITIES | 20 | (923,906 | ) |
NET ASSETS | 6,896,882 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 98,000 |
Revaluation reserve | 22 | 160,034 |
Merger reserve | 22 | 6,241,294 |
Retained earnings | 22 | 397,554 |
SHAREHOLDERS' FUNDS | 6,896,882 |
The financial statements were approved by the Board of Directors and authorised for issue on 27 January 2025 and were signed on its behalf by: |
D Locker - Director |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
COMPANY BALANCE SHEET |
30 APRIL 2024 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Debtors | 14 |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Merger reserve | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
Called up |
share | Retained | Revaluation | Merger | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Changes in equity |
Issue of share capital | 98,000 | - | - | - | 98,000 |
Total comprehensive income | - | 397,554 | 160,034 | 6,241,294 | 6,798,882 |
Balance at 30 April 2024 | 98,000 | 397,554 | 160,034 | 6,241,294 | 6,896,882 |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
Called up |
share | Retained | Merger | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Changes in equity |
Issue of share capital | - | - |
Total comprehensive income | - |
Balance at 30 April 2024 |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
Notes | £ |
Cash flows from operating activities |
Cash generated from operations | 27 | 7,721,079 |
Interest paid | (1,173,830 | ) |
Tax paid | (799,861 | ) |
Net cash from operating activities | 5,747,388 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (7,739,387 | ) |
Purchase of tangible fixed assets | (302,046 | ) |
Interest received | 14,437 |
Net cash from investing activities | (8,026,996 | ) |
Cash flows from financing activities |
New loans in year | 4,500,000 |
Loan repayments in year | (187,500 | ) |
Amount withdrawn by directors | (676,423 | ) |
Net cash from financing activities | 3,636,077 |
Increase in cash and cash equivalents | 1,356,469 |
Cash and cash equivalents at beginning of period |
28 |
- |
Cash and cash equivalents at end of period |
28 |
1,356,469 |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
1. | STATUTORY INFORMATION |
Bew Electrical Distributors (Holdings) Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
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. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The Group consolidated financial statements include the financial statements of the Company and its |
subsidiaries, all of whom are 100% owned, made up to the same period end date. All accounting policies as |
detailed below are applied consistently across the Group. |
The Company has taken advantage of the exemption in Section 1 of FRS102 from the from the requirement to present its individual cashflow statement. |
Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
a) Critical judgements in applying the entity's accounting policies |
There are no specific judgements, apart from those involving estimates as detailed below, that management has made in the process of applying the entity’s accounting policies that have a significant effect on the amounts recognised in the financial statements. |
b) Critical accounting estimates and assumptions |
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates can differ from the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
(i) Useful economic live of intangible assets |
Goodwill and intangible assets are amortised over their useful economic lives and are assessed annually for indications of impairment. |
(ii) Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates based on technological advancements, future investments, economic utilisation and the physical condition of the assets. |
(iii) Stock provisioning |
Due to the nature of the business, it is necessary for the management to consider the recoverability of the cost of stock and the associated provisioning required. When calculating stock provisions, management considers the nature, condition and future saleability of the stock. |
(iv) Impairment of debtors |
The Group makes an estimate of the recoverable value of trade and other debtors. When assessing their impairment, the management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. |
(v) Valuation of Freehold and Investment Properties |
The Group makes an estimate of the fair value of properties based on evidence that is available at the time of the valuation and with the assistance of independent, professional valuation specialists. |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
3. | ACCOUNTING POLICIES - continued |
Revenue recognition |
Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied, net of returns, discounts and value added taxes. |
Sales of goods are recognised on sale to the customer, which is considered to be the point of delivery and when the significant risks and rewards of the goods have been passed to the customer. |
Goodwill |
Goodwill arising on consolidation is being amortised over its expected useful life of 10 years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Tangible Fixed Assets are stated at cost less depreciation, except in the case of Freehold Land & Buildings which are stated at revalued cost less depreciation. |
Depreciation is provided at rates calculated to write off the cost of Tangible Fixed Assets, less their estimated residual value, over their estimated useful lives at the following rates: |
Freehold buildings | - 2% on cost |
Short leasehold property | - over the term of the lease |
Fixtures and fittings | - 20% on cost |
Computer equipment | - 33% on cost |
Motor vehicles | - 25% on cost (less residual value) |
Freehold land is not depreciated. |
Single items costing less than £1,000 are not capitalised but written off to the Profit and Loss Account as incurred. |
Investment property |
Investment Properties are shown at fair value. Any aggregate surplus or deficit that arises from a change in fair value is recognised in the income statement, net of deferred tax. On an annual basis this surplus or deficit is transferred from retained profits into a separate, non-distributable revaluation reserve. |
Stocks |
Stocks are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for impairment of obsolete or slow moving items. Stocks are recognised as an expense in the period in which the related revenue is recognised. |
Cost is determined on the first-in, first-out (FIFO) method. Cost includes the purchase price, including taxes and duties, transport and handling directly attributable to bringing the stock to its present location and condition. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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. |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
3. | ACCOUNTING POLICIES - continued |
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 period 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. |
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. |
Employee benefits |
The company provides a range of benefits to employees, including paid holiday arrangements and a defined contribution pension plan. |
(i) Short Term Benefits |
Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received. |
(ii) Company Pension Plan |
The company operates a pension plan for its employees. This is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown as a creditor on the balance sheet. The assets of the scheme are held separately from the company in independently administered funds. |
4. | EMPLOYEES AND DIRECTORS |
£ |
Wages and salaries | 9,480,591 |
Social security costs | 880,602 |
Other pension costs | 242,946 |
10,604,139 |
The average number of employees during the period was as follows: |
Management and office | 92 |
Sales and distribution | 223 |
The average number of employees by undertakings that were proportionately consolidated during the period was 315 . |
£ |
Directors' remuneration | 485,926 |
Directors' pension contributions to money purchase schemes | 15,531 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 4 |
Information regarding the highest paid director is as follows: |
£ |
Emoluments etc | 172,716 |
Pension contributions to money purchase schemes | 5,052 |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
£ |
Hire of plant and machinery | 94,340 |
Operating lease charges | 3,179,981 |
Depreciation - owned assets | 246,099 |
Goodwill amortisation | 845,619 |
Auditors' remuneration - Audit | 27,000 |
Auditors remuneration - Accounts and other | 2,250 |
Auditors remuneration - Tax | 3,500 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
£ |
HMRC interest | 54,181 |
Sales invoice financing interest | 842,681 |
Bank loan interest | 276,968 |
1,173,830 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
£ |
Current tax: |
UK corporation tax | 685,509 |
Corporation tax adjustment |
on HMRC settlement | 89,797 |
Total current tax | 775,306 |
Deferred tax | 8,884 |
Tax on profit | 784,190 |
UK corporation tax has been charged at 25 % . |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
£ |
Profit before tax | 1,181,744 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % | 295,436 |
Effects of: |
Expenses not deductible for tax purposes | 162,657 |
Depreciation in excess of capital allowances | 227,416 |
Adjustments to tax charge in respect of previous periods | 89,797 |
Deferred tax | 8,884 |
Total tax charge | 784,190 |
Tax effects relating to effects of other comprehensive income |
Gross | Tax | Net |
£ | £ | £ |
Freehold property revaluation | 162,000 | (1,966 | ) | 160,034 |
Merger relief | 6,241,294 | - | 6,241,294 |
6,403,294 | (1,966 | ) | 6,401,328 |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
Additions | 11,274,926 |
Acquired with subsidiary | 638,339 |
At 30 April 2024 | 11,913,265 |
AMORTISATION |
Amortisation for period | 845,619 |
Acquired with subsidiary | 638,339 |
At 30 April 2024 | 1,483,958 |
NET BOOK VALUE |
At 30 April 2024 | 10,429,307 |
During the year, the parent company acquired 100% of the issued share capital in BEW Electrical Distributors Limited, as disclosed in the Strategic Report. |
Goodwill on the consolidation of the subsidiary is comprised as follows: |
£ |
Acquisition cost including fees | 24,252,739 |
Fair value of net assets acquired | (12,977,813 | ) |
Goodwill arising | 11,274,926 |
10. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Short | Fixtures |
land and | leasehold | and |
buildings | property | fittings |
£ | £ | £ |
COST OR VALUATION |
Additions | - | 182,220 | 112,026 |
Revaluations | 150,000 | - | - |
Acquired with subsidiary | 4,400,000 | 1,077,560 | 1,930,285 |
At 30 April 2024 | 4,550,000 | 1,259,780 | 2,042,311 |
DEPRECIATION |
Charge for period | 70,400 | 90,759 | 77,140 |
Revaluation adjustments | (12,000 | ) | - | - |
Acquired with subsidiary | - | 616,054 | 1,761,829 |
At 30 April 2024 | 58,400 | 706,813 | 1,838,969 |
NET BOOK VALUE |
At 30 April 2024 | 4,491,600 | 552,967 | 203,342 |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
Additions | 7,800 | - | 302,046 |
Revaluations | - | - | 150,000 |
Acquired with subsidiary | 19,810 | 121,235 | 7,548,890 |
At 30 April 2024 | 27,610 | 121,235 | 8,000,936 |
DEPRECIATION |
Charge for period | 7,800 | - | 246,099 |
Revaluation adjustments | - | - | (12,000 | ) |
Acquired with subsidiary | 11,810 | 121,235 | 2,510,928 |
At 30 April 2024 | 19,610 | 121,235 | 2,745,027 |
NET BOOK VALUE |
At 30 April 2024 | 8,000 | - | 5,255,909 |
Included in cost or valuation of land and buildings is freehold land of £910,000 which is not depreciated. |
Cost or valuation at 30 April 2024 is represented by: |
Freehold | Short | Fixtures |
land and | leasehold | and |
buildings | property | fittings |
£ | £ | £ |
Valuation in 2017 | 897,149 | - | - |
Valuation in 2021 | 660,000 | - | - |
Valuation in 2022 | 455,000 | - | - |
Valuation in 2023 | 325,000 | - | - |
Valuation in 2024 | 150,000 | - | - |
Cost | 2,062,851 | 1,259,780 | 2,042,311 |
4,550,000 | 1,259,780 | 2,042,311 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Valuation in 2017 | - | - | 897,149 |
Valuation in 2021 | - | - | 660,000 |
Valuation in 2022 | - | - | 455,000 |
Valuation in 2023 | - | - | 325,000 |
Valuation in 2024 | - | - | 150,000 |
Cost | 27,610 | 121,235 | 5,513,787 |
27,610 | 121,235 | 8,000,936 |
If Freehold land and buildings had not been revalued they would have been included at the following historical cost: |
£ |
Cost | 2,062,851 |
Aggregate depreciation | 650,837 |
Value of land in freehold land and buildings | 388,106 |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
The freehold land and buildings have been valued by Savilles (UK) Limited, a RICS registered independent firm of Chartered Surveyors, on an open market basis as at the year end. |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
Additions |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Unit 5 Northumberland Court Dukes Park Industrial Estate |
Nature of business: |
% |
Class of shares: | holding |
12. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
Transfer from fixed assets | 3,200,000 |
At 30 April 2024 | 3,200,000 |
NET BOOK VALUE |
At 30 April 2024 | 3,200,000 |
Fair value at 30 April 2024 is represented by: |
£ |
Valuation in 2015 | 307,525 |
Valuation in 2016 | 250,000 |
Valuation in 2018 | 200,000 |
Valuation in 2020 | 1,381,734 |
Valuation in 2022 | 700,000 |
Cost | 360,741 |
3,200,000 |
The investment properties have been valued by Savilles (UK) Limited, a RICS registered independent firm of Chartered Surveyors, on an open market basis as at the year end. |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
13. | STOCKS |
Group |
£ |
Goods for resale | 11,019,856 |
14. | DEBTORS |
Group | Company |
£ | £ |
Amounts falling due within one year: |
Trade debtors | 27,592,285 |
Other debtors | 2,756,939 |
Directors' current accounts | 1,043,625 | - |
Corporation tax recoverable | 1,075,079 |
Prepayments | 1,787,710 |
34,255,638 |
Amounts falling due after more than one | year: |
Rent deposit | 74,250 | - |
Aggregate amounts | 34,329,888 |
Trade debtors are subject to sales invoice financing terms, with advances received against these debtors of £13,724,346 included in creditors due within one year. |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
£ | £ |
Bank loans and overdrafts (see note 17) | 225,000 |
Other loans (see note 17) | 13,724,346 |
Trade creditors | 25,863,113 |
Amounts owed to group undertakings | - |
Corporation tax | 1,445,202 |
Social security and other taxes | 337,425 |
VAT | 313,326 | - |
Other creditors | 1,871,227 |
Accrued expenses | 1,908,416 |
45,688,055 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
£ | £ |
Bank loans (see note 17) | 4,087,500 |
Social security and other taxes | 791,981 |
Other creditors | 7,203,105 |
12,082,586 |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
£ |
Amounts falling due within one year or on | demand: |
Bank loans | 225,000 |
Sales invoice financing | 13,724,346 |
13,949,346 |
Amounts falling due between one and two | years: |
Bank loans | 225,000 |
Amounts falling due between two and five | years: |
Bank loans | 675,000 |
Amounts falling due in more than five | years: |
Repayable by instalments |
Bank loans | 3,187,500 |
The bank loan is secured and repayable in instalments over 20 years at an interest rate of 5.45% above Bank of England base rate. |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non- | cancellable | operating leases |
£ |
Within one year | 1,835,410 |
Between one and five years | 6,317,839 |
In more than five years | 2,177,960 |
10,331,209 |
Of the balances shown above, £10,182,912 relate to the branch premises from which the company operates. |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
£ |
Bank loans | 4,312,500 |
Sales invoice financing | 13,724,346 |
Deferred consideration | 8,865,350 |
26,902,196 |
The sales invoice financing arrangement and bank loan are secured by way of a fixed and floating charge over all property and assets present and future. |
The former Directors P Webb and R Locker hold a security debenture against the assets of the company in relation to deferred payments due to them under their share sale agreement. |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
20. | PROVISIONS FOR LIABILITIES |
Group |
£ |
Deferred tax |
Accelerated capital allowances | 36,455 |
Deferred tax on property revaluations | 887,451 |
923,906 |
Group |
Deferred |
tax |
£ |
Provided during period | 1,966 |
Charge to Statement of Comprehensive Income during period | 8,884 |
Acquired with subsidiary | 913,056 |
Balance at 30 April 2024 | 923,906 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal |
value: | £ |
Ordinary | £1 | 98,000 |
98,000 Ordinary shares of £1 each were allotted and fully paid for |
22. | RESERVES |
Group |
Retained | Revaluation | Merger |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
Profit for the period | 397,554 | 397,554 |
Merger relief | - | - | 6,241,294 | 6,241,294 |
Revaluation surplus net of |
deferred tax | - | 160,034 | - | 160,034 |
At 30 April 2024 | 397,554 | 160,034 | 6,241,294 | 6,798,882 |
Company |
Retained | Merger |
earnings | reserve | Totals |
£ | £ | £ |
Profit for the period |
Merger relief |
At 30 April 2024 | 6,241,294 |
23. | CONTINGENT LIABILITIES |
The Group is not currently compliant with the requirements of the UK business payment practices and performance reporting regime. The Directors acknowledge this breach and are in the process of filing the necessary information. |
The Directors also acknowledge that the company may be liable for a fine for non-compliance, though no provision has been made in these accounts as the amount cannot be reliably estimated. |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the period ended 30 April 2024: |
£ |
D C Groves |
Balance outstanding at start of period | 65,948 |
Amounts advanced | 10,000 |
Amounts repaid | - |
Amounts written off | - |
Amounts waived | - |
Balance outstanding at end of period | 75,948 |
N A Godfrey |
Balance outstanding at start of period | 21,536 |
Amounts advanced | 209,423 |
Amounts repaid | - |
Amounts written off | - |
Amounts waived | - |
Balance outstanding at end of period | 230,959 |
D Locker |
Balance outstanding at start of period | 134,513 |
Amounts advanced | 457,000 |
Amounts repaid | - |
Amounts written off | - |
Amounts waived | - |
Balance outstanding at end of period | 591,513 |
D J Shirt |
Balance outstanding at start of period | 141,806 |
Amounts repaid | - |
Amounts written off | - |
Amounts waived | - |
Balance outstanding at end of period | 141,806 |
The opening balances disclosed above were those as owed at 30/4/23 to the trading subsidiary. The above balances are interest free, unsecured and repayable on demand. |
25. | RELATED PARTY DISCLOSURES |
Included within other debtors are amounts totalling £2,076,509 owed by the former Directors of the subsidiary company, P R Webb and R W Locker. |
During the year the Group made a loan of £340,000 to a third party, who subsequently loaned this amount to P R Webb. There is no formal agreement for this loan, it is unsecured, interest free and with no fixed repayment terms. |
The intention is for the balances relating to P R Webb and R W Locker to be partly repaid from their proceeds of the sale of their shares as disclosed in the Report of the Directors. |
At the year end, unsecured loans were advanced to the close family of certain Directors, totalling £69,828. These loans are interest free with no fixed terms for repayment. |
26. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is D Locker. |
BEW ELECTRICAL DISTRIBUTORS (HOLDINGS) |
LIMITED (REGISTERED NUMBER: 14699880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 2 MARCH 2023 TO 30 APRIL 2024 |
27. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
£ |
Profit before taxation | 1,181,744 |
Depreciation charges | 1,091,719 |
Finance costs | 1,173,830 |
Finance income | (14,437 | ) |
3,432,856 |
Increase in stocks | (899,537 | ) |
Increase in trade and other debtors | (1,703,598 | ) |
Increase in trade and other creditors | 6,891,358 |
Cash generated from operations | 7,721,079 |
28. | 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: |
Period ended 30 April 2024 |
30.4.24 | 2.3.23 |
£ | £ |
Cash and cash equivalents | 1,356,469 | - |
29. | ANALYSIS OF CHANGES IN NET DEBT |
At 2.3.23 | Cash flow | At 30.4.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | - | 1,356,469 | 1,356,469 |
- | 1,356,469 | 1,356,469 |
Debt |
Debts falling due within 1 year | - | (13,949,346 | ) | (13,949,346 | ) |
Debts falling due after 1 year | - | (4,087,500 | ) | (4,087,500 | ) |
- | (18,036,846 | ) | (18,036,846 | ) |
Total | - | (16,680,377 | ) | (16,680,377 | ) |