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COMPANY REGISTRATION NUMBER: 08656189
Carvansons Ltd
Financial Statements
30 April 2024
Carvansons Ltd
Financial Statements
Year ended 30th April 2024
Contents
Page
Strategic report
1
Director's report
3
Independent auditor's report to the members
5
Statement of income and retained earnings
9
Statement of financial position
10
Statement of cash flows
11
Notes to the financial statements
12
Carvansons Ltd
Strategic Report
Year ended 30th April 2024
The directors present their strategic report of the company for the year ended 30 April 2024.
Review of the business
The principle activity of the business for the year was that of creating and manufacturing fragrance compounds, aromas and perfumes for the use in cosmetic and personal care products, household products and industrial manufacturing. The company saw an increase in turnover and net profit mainly due to significant growth in both UK and overseas markets, and cost reductions in direct costs due to increased volumes. We believe that the company will show an increase in turnover and net profit over the next reporting period as we continue to invest in the business with both capital equipment and software increasing our production capacity.
Results
The company made a pre-tax profit of £1,395,647 (2023: £461,363) for the year from a turnover of £19,454,290 (2023: £16,418,279). At 30 April 2024 the company had net assets of £4,915,158 (2023: £4,090,806).
Principal risks and uncertainties
The principal risks and uncertainties facing the company relate to uncertainties in the political and economic climate in some exports markets.
Performance monitoring
The delivery of the company's strategic objectives is monitored by the directors through Key Performance Indicators and the periodic review of various aspects of the company's operations. The directors consider the following Key Performance Indicators as appropriate measures for the delivery of its corporate strategy. Financial Definition Sales Revenue Growth in sales revenue and strength of the company's market position. Operating Profit The continued growth of operating profits which allow the company to continue to invest in its facilities.
This report was approved by the board of directors on 31st January 2025 and signed on behalf of the board by:
Mr J L Whowell
Director
Registered office:
Knowsley Park Way
Knowsley Road Industrial Estate
Haslingden
Rossendale
England
BB4 4RS
Carvansons Ltd
Director's Report
Year ended 30th April 2024
The director presents his report and the financial statements of the company for the year ended 30 April 2024 .
Directors
The directors who served the company during the year were as follows:
Mr J L Whowell
Ms L Y Dudley
(Resigned 30 September 2023)
Dividends
Particulars of recommended dividends are detailed in note 13 to the financial statements.
Future developments
The company plans to further build on its recent investment in its production, storage and distribution facilities as part of its rolling capital investment programme. The capacity gained in the new building has allowed us to achieve sales growth, and further investment will continue to facilitate future sales growth. Ongoing equipment and ERP and CRM software developments will continue to improve our operating efficiencies and customer service.
Financial instruments
The directors consider that the company only has limited exposure to the various aspects of financial risk and it does not enter into any non basic contracts as there is no requirement for this within its trade. The company's revenue is invoiced in sterling and all its operational costs arise within the United Kingdom.
Research and development
During the year ending 30th April 2024 the company has undertaken the following research and development project;
Development of innovative extraction and analysis methodologies to facilitate the production of a tailored essential oil base formulation with a specific aroma profile, while utilising only natural materials.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The director is 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. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 31 January 2025 and signed on behalf of the board by:
Mr J L Whowell
Director
Registered office:
Knowsley Park Way
Knowsley Road Industrial Estate
Haslingden
Rossendale
England
BB4 4RS
Carvansons Ltd
Independent Auditor's Report to the Members of Carvansons Ltd
Year ended 30th April 2024
Opinion
We have audited the financial statements of Carvansons Ltd (the 'company') for the year ended 30th April 2024 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 30th April 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of the director
As explained more fully in the director's responsibilities statement, the director is 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 director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: The extent to which the audit was considered capable of detecting irregularities, including fraud In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team: - obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework; - inquired of management and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; - discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102 and the Companies Act 2006. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures. The audit engagement team identified the risk of management override of controls and revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and testing a sample of revenue transactions recorded in the year to determine whether revenue had been recorded correctly. 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 auditor's report. 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 auditor’s report. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Fraser Wolff FCCA
(Senior Statutory Auditor)
For and on behalf of
Edwards Veeder LLP
Chartered Accountants & Statutory Auditor
Alex House
260-268 Chapel Street
Salford
M3 5JZ
31 January 2025
Carvansons Ltd
Statement of Income and Retained Earnings
Year ended 30th April 2024
2024
2023
Note
£
£
Turnover
4
19,454,290
16,418,279
Cost of sales
11,831,062
11,205,299
-------------
-------------
Gross profit
7,623,228
5,212,980
Administrative expenses
5,999,710
4,845,454
Other operating income
5
( 14,020)
277,419
------------
------------
Operating profit
6
1,609,498
644,945
Interest receivable
10
7,241
215
Interest payable
11
221,092
183,797
------------
------------
Profit before taxation
1,395,647
461,363
Taxation on ordinary activities
12
18,668
( 38,280)
------------
---------
Profit for the financial year and total comprehensive income
1,376,979
499,643
------------
---------
Dividends paid and payable
13
( 552,627)
( 409,044)
Retained earnings at the start of the year
3,905,292
3,814,693
------------
------------
Retained earnings at the end of the year
4,729,644
3,905,292
------------
------------
All the activities of the company are from continuing operations.
Carvansons Ltd
Statement of Financial Position
30 April 2024
2024
2023
Note
£
£
£
£
Fixed assets
Tangible assets
15
6,599,962
5,568,376
Current assets
Stocks
16
1,491,965
1,711,791
Debtors
17
4,526,115
4,812,504
Cash at bank and in hand
1,341,080
679,494
------------
------------
7,359,160
7,203,789
Creditors: amounts falling due within one year
18
5,405,675
5,112,994
------------
------------
Net current assets
1,953,485
2,090,795
------------
------------
Total assets less current liabilities
8,553,447
7,659,171
Creditors: amounts falling due after more than one year
19
3,342,032
3,429,551
Provisions
Taxation including deferred tax
21
296,257
138,814
------------
------------
Net assets
4,915,158
4,090,806
------------
------------
Capital and reserves
Called up share capital
25
10,020
10,020
Revaluation reserve
26
175,494
175,494
Profit and loss account
26
4,729,644
3,905,292
------------
------------
Shareholders funds
4,915,158
4,090,806
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 31 January 2025 , and are signed on behalf of the board by:
Mr J L Whowell
Director
Company registration number: 08656189
Carvansons Ltd
Statement of Cash Flows
Year ended 30th April 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
1,376,979
499,643
Adjustments for:
Depreciation of tangible assets
201,770
209,547
Government grant income
( 22,974)
Interest receivable
( 7,241)
( 215)
Interest payable
221,092
183,797
Loss on disposal of tangible assets
276
Taxation on ordinary activities
18,668
( 38,280)
Accrued expenses
56,709
7,485
Changes in:
Stocks
219,826
382,252
Trade and other debtors
286,389
453,294
Trade and other creditors
( 410,287)
( 475,548)
------------
------------
Cash generated from operations
1,940,931
1,222,251
Interest paid
( 221,092)
( 183,797)
Interest received
7,241
215
Tax received
138,775
80,742
------------
------------
Net cash from operating activities
1,865,855
1,119,411
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 1,233,356)
( 205,642)
------------
------------
Net cash used in investing activities
( 1,233,356)
( 205,642)
------------
------------
Cash flows from financing activities
Proceeds from borrowings
565,263
( 46,506)
Government grant income
22,974
Payments of finance lease liabilities
( 6,523)
( 38,079)
Dividends paid
( 552,627)
( 409,044)
------------
------------
Net cash from/(used in) financing activities
29,087
( 493,629)
------------
------------
Net increase in cash and cash equivalents
661,586
420,140
Cash and cash equivalents at beginning of year
679,494
259,354
------------
---------
Cash and cash equivalents at end of year
1,341,080
679,494
------------
---------
Carvansons Ltd
Notes to the Financial Statements
Year ended 30th April 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Knowsley Park Way, Knowsley Road Industrial Estate, Haslingden, Rossendale, BB4 4RS, England.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Useful life of fixed assets In making decisions regarding the depreciation of non current assets, management must estimate the useful life of said assets to the business. A change in estimate would result in a change in the depreciation charged to profit and loss in each year. The carrying amount of depreciation and amortisation at the end of 30th April 2024 is £1,425,721 (2023 £1,223,951).
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
33% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property
-
2% straight line
Plant and machinery
-
15% reducing balance
Fixtures and fittings
-
15% reducing balance
Motor Vehicles
-
25% reducing balance
Equipment
-
15% reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
19,454,290
16,418,279
-------------
-------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2024
2023
£
£
United Kingdom
7,908,944
5,537,527
Overseas
11,545,346
10,880,752
-------------
-------------
19,454,290
16,418,279
-------------
-------------
5. Other operating income
2024
2023
£
£
Management charges receivable
( 36,994)
277,419
Government grant income
22,974
--------
---------
( 14,020)
277,419
--------
---------
6. Operating profit
Operating profit or loss is stated after charging:
2024
2023
£
£
Depreciation of tangible assets
201,770
209,547
Loss on disposal of tangible assets
276
Impairment of trade debtors
560,240
222,030
---------
---------
7. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
8,500
8,500
-------
-------
8. Particulars of employees
The average number of persons employed by the company during the year, including the director, amounted to:
2024
2023
No.
No.
Production staff
64
69
Administrative staff
30
30
Management staff
2
2
----
----
96
101
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
3,276,041
2,818,082
Social security costs
275,715
248,450
Other pension costs
122,326
150,419
------------
------------
3,674,082
3,216,951
------------
------------
9. Director's remuneration
The director's aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
134,163
93,890
Company contributions to defined contribution pension plans
1,408
41,802
---------
---------
135,571
135,692
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2024
2023
No.
No.
Defined contribution plans
2
2
----
----
10. Interest receivable
2024
2023
£
£
Interest on cash and cash equivalents
7,241
215
-------
----
11. Interest payable
2024
2023
£
£
Interest on banks loans and overdrafts
220,769
182,310
Interest on obligations under finance leases and hire purchase contracts
323
1,487
---------
---------
221,092
183,797
---------
---------
12. Taxation on ordinary activities
Major components of tax expense/(income)
2024
2023
£
£
Current tax:
UK current tax income
( 80,742)
Adjustments in respect of prior periods
( 138,775)
---------
--------
Total current tax
( 138,775)
( 80,742)
---------
--------
Deferred tax:
Origination and reversal of timing differences
157,443
42,462
---------
--------
Taxation on ordinary activities
18,668
( 38,280)
---------
--------
Reconciliation of tax expense/(income)
The tax assessed on the profit on ordinary activities for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 19.49 %).
2024
2023
£
£
Profit on ordinary activities before taxation
1,395,647
461,363
------------
---------
Profit on ordinary activities by rate of tax
348,912
85,417
Adjustment to tax charge in respect of prior periods
( 138,775)
Effect of expenses not deductible for tax purposes
18,631
3,234
Effect of capital allowances and depreciation
( 260,316)
7,089
Unused tax losses
127,669
Rounding on tax charge
15
Origination and reversal of timing differences
157,443
42,462
Other tax adjustment to increase/(decrease) tax liability
(234,896)
(176,497)
------------
---------
Tax on profit
18,668
( 38,280)
------------
---------
13. Dividends
2024
2023
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
552,627
409,044
---------
---------
14. Intangible assets
Goodwill
£
Cost
At 1st May 2023 and 30th April 2024
750,000
---------
Amortisation
At 1st May 2023 and 30th April 2024
750,000
---------
Carrying amount
At 30th April 2024
---------
At 30th April 2023
---------
15. Tangible assets
Freehold property
Plant and machinery
Fixtures and fittings
Motor vehicles
Equipment
Total
£
£
£
£
£
£
Cost
At 1 May 2023
5,060,688
647,310
158,294
24,500
151,535
6,042,327
Additions
1,118,477
92,684
22,195
1,233,356
------------
------------
---------
--------
---------
------------
At 30 Apr 2024
5,060,688
1,765,787
250,978
24,500
173,730
7,275,683
------------
------------
---------
--------
---------
------------
Depreciation
At 1 May 2023
101,214
266,126
38,930
11,868
55,813
473,951
Charge for the year
99,191
63,857
19,863
3,157
15,702
201,770
------------
------------
---------
--------
---------
------------
At 30 Apr 2024
200,405
329,983
58,793
15,025
71,515
675,721
------------
------------
---------
--------
---------
------------
Carrying amount
At 30 Apr 2024
4,860,283
1,435,804
192,185
9,475
102,215
6,599,962
------------
------------
---------
--------
---------
------------
At 30 Apr 2023
4,959,474
381,184
119,364
12,632
95,722
5,568,376
------------
------------
---------
--------
---------
------------
Tangible assets held at valuation
The freehold property was valued at £5,000,000 by Sanderson Weatherall LLP, commercial property agents on 30 April 2022.
In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:
Freehold property
£
At 30th April 2024
Aggregate cost
4,991,098
Aggregate depreciation
(305,548)
------------
Carrying value
4,685,550
------------
At 30th April 2023
Aggregate cost
4,991,098
Aggregate depreciation
(205,726)
------------
Carrying value
4,785,372
------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant and machinery
£
At 30th April 2024
10,702
--------
At 30th April 2023
78,867
--------
16. Stocks
2024
2023
£
£
Raw materials
1,491,965
1,711,791
------------
------------
17. Debtors
2024
2023
£
£
Trade debtors
4,156,420
4,351,929
Prepayments and accrued income
228,898
208,739
Other debtors
140,797
251,836
------------
------------
4,526,115
4,812,504
------------
------------
18. Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
681,000
75,000
Trade creditors
3,026,792
3,274,752
Accruals and deferred income
402,071
345,362
Social security and other taxes
64,930
62,457
Obligations under finance leases and hire purchase contracts
3,795
6,321
Other creditors
1,227,087
1,349,102
------------
------------
5,405,675
5,112,994
------------
------------
The bank loans and overdrafts are secured by a first legal charge dated 15 December 2020 over the Freehold property known as former Rosso Depot, Knowsley Park Way, Haslingden, Lancashire, BB4 4RS plus a debenture including fixed charge over all present freehold and leasehold property; First fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and first floating charge over all assets and undertaking both present and future dated 07 May 2019.
The aggregate amount of bank loans and overdrafts due within one year for which security was given amounted to £1,805,468 (2023: £1,325,942). This includes amounts included in other creditors of £1,120,673 (2023 £1,244,621).
A loan from Carvansons LLP pension scheme is secured by a first legal charge over company stock. This is included in other creditors in the amount of £91,443 (2023 £90,092).
Finance lease and hire purchase creditors are secured on the assets for which the finance was provided.
19. Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
2,709,472
2,750,209
Obligations under finance leases and hire purchase contracts
3,997
Other creditors
632,560
675,345
------------
------------
3,342,032
3,429,551
------------
------------
The bank loans and overdrafts are secured by a first legal charge dated 15 December 2020 over the Freehold property known as former Rosso Depot, Knowsley Park Way, Haslingden, Lancashire, BB4 4RS plus a debenture including fixed charge over all present freehold and leasehold property; First fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and first floating charge over all assets and undertaking both present and future dated 07 May 2019.
The aggregate amount of bank loans and overdrafts due after more than one year for which security was given amounted to £2,794,499 (2023: £2,930,676).
A loan from Carvansons LLP pension scheme is secured by a first legal charge over company stock. This is included in other creditors in the amount of £85,207 (2023 £176,470).
Finance lease and hire purchase creditors are secured on the assets for which the finance was provided.
20. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2024
2023
£
£
Not later than 1 year
3,864
6,836
Later than 1 year and not later than 5 years
3,864
-------
--------
3,864
10,700
Less: future finance charges
( 69)
( 382)
-------
--------
Present value of minimum lease payments
3,795
10,318
-------
--------
Certain plant and machinery and equipment are held under finance leases and hire purchase contracts. The liabilities are secured by the related assets for which the finance was provided (note 15).
21. Provisions
Deferred tax (note 22)
£
At 1st May 2023
138,814
Additions
157,443
---------
At 30th April 2024
296,257
---------
22. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 21)
296,257
138,814
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
296,257
138,814
---------
---------
23. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 120,918 (2023: £ 108,617 ).
24. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2024
2023
£
£
Recognised in other operating income:
Government grants recognised directly in income
22,974
--------
----
25. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
10,000
10,000
10,000
10,000
A Ordinary shares of £ 1 each
10
10
10
10
B Ordinary shares of £ 1 each
10
10
10
10
--------
--------
--------
--------
10,020
10,020
10,020
10,020
--------
--------
--------
--------
26. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
27. Analysis of changes in net debt
At 1 May 2023
Cash flows
At 30 Apr 2024
£
£
£
Cash at bank and in hand
679,494
661,586
1,341,080
Debt due within one year
(81,321)
(603,474)
(684,795)
Debt due after one year
(2,754,206)
44,734
(2,709,472)
------------
---------
------------
( 2,156,033)
102,846
( 2,053,187)
------------
---------
------------
Carvansons Ltd
Notes to the Financial Statements (continued)
Year ended 30th April 2024
28. Related party transactions
The company was under the control of Mr J.L. Whowell throughout the current and previous year. Mr J.L. Whowell is the managing director and majority shareholder. At 30 April 2024 the company was owed £772,609 (2023 £309,528) from a company with common interest and control. Transactions to the company during the year were made up of turnover amounting to £2,202,063 (2023 £2,643,132). At 30 April 2024 the company was owed £100,821 (2023 £47,951) from a company with common interest and control. Transactions to the company during the year were made up of turnover amounting to £52,907 (2023 £15,274). The amounts owed to related companies are interest free and there are no fixed repayment terms. No securities have been given or received. At 30 April 2024 the company owed a company with common interest and control £176,470 (2023 £266,562). Transactions to the company during the year were made up of rent amounting of £Nil (2023 £4,500). At 30 April 2024 the company owed £Nil (2023 £Nil) to a director J L Whowell. No interest has been charged to the company in respect of the balance which is repayable on demand and is classified under creditors.