Company registration number 00508673 (England and Wales)
WEST & SENIOR LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
WEST & SENIOR LIMITED
COMPANY INFORMATION
Directors
Mr A D Cooper
Mr B J Daniels
Mr M E Newton
Mr S J Quinn
Mr S R Senior
Secretary
Mr D I Brown
Company number
00508673
Registered office
Milltown Street
Radcliffe
Manchester
M26 1WE
Auditor
MHA
Exchange Station
Tithebarn Street
Liverpool
L2 2QP
Bankers
Barclays Bank Plc
Leicester
LE87 2BB
WEST & SENIOR LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
WEST & SENIOR LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

The directors present the strategic report for the year ended 31 May 2024.

Review of the business

West and Senior continued to manufacture pigment paste concentrates and additive blends for the specialised polymer and coatings industries. The company supports all the geographical territories where our products are sold and this will also be the case for the financial year ending 31st May 2025.

The company’s sales value has decreased to £12.1million. The loss in sales has been a fallout from Brexit, however it also highlighted that this lost business was very low margin work.

This being the fifth full year as employee-owned, The Trustees have again been able to present tax free “employee-owned trust bonuses” to all employees. This being in addition to the quarterly paid profit share scheme that was started in the 1970’s under the original founders.

The business monitors key performance indicators via weekly orders received, following the Sales Value, Sales Volume and Gross Profit. This is then recorded on a monthly quarterly half year and full year basis. Having managed the overheads well throughout the year has created a positive bottom line profit.

The significant investment in I.T. that has taken place during this year has resulted in the essential upgrade of the system that manages our material safety data sheets and legislative requirements for UK, EU (including UFI Code -Unique Formula Identifier Code) and other business globally.

 

 

2024

2023

Sales

12,182,726

15,299,834

Gross Profit

39.49%

31.58%

Operating Profit

6.48%

6.47%

 

 

 

Principal risks and uncertainties

Following a challenging year when turnover was significantly reduced, we have also made some gains that are profitable. Thankfully our energy costs have reduced this year which has aided the control of overheads however we have identified the following key risks:

Cash flow and interest rates

In January 2022 we fixed the rate for our bank loan for five years, which is now showing to be prudent financial planning. We have carefully managed the raw material stockholding during this year (confirmed in our end of year stock value) as we note the pricing of all raw materials and packaging has increased significantly, however we note the challenges that will come when the market softens. We continue to purchase and sell in all three major currencies.

 

Research and development

Research and development continue to play a vital role in supporting the company’s growth plans and the company has again invested in this department with more personnel.

 

WEST & SENIOR LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
Future developments

Following business discussions with our customer base in mainland Europe we anticipate a flat year for demand during the first half of the financial year ending 31st May 2025. This has also been verified by our major raw material supply lines. The development of our recent tinting system is proving to be successful and has already been approved for use in several countries.

On behalf of the board

Mr B J Daniels
Director
3 February 2025
WEST & SENIOR LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 May 2024.

Principal activities

The principal activity of the company continues to be the manufacturing of colour concentrates.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

 

Employee ownership trust

 

A contribution of £734,000 was made to the Employee Ownership Trust (2023 - £633,499).

Directors

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

Mr A D Cooper
Mr B J Daniels
Mr M E Newton
Mr S J Quinn
Mr S R Senior
Mr N Wright
(Resigned 1 June 2024)
Auditor

Following the merger of MHA Moore & Smalley with MHA, the company's independent auditor has now become MHA. A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and financial risk management.

Statement of disclosure to auditor

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

Medium-sized companies exemption

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

WEST & SENIOR LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 4 -
On behalf of the board
Mr B J Daniels
Director
3 February 2025
WEST & SENIOR LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 5 -

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

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

WEST & SENIOR LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WEST & SENIOR LIMITED
- 6 -
Opinion

We have audited the financial statements of West & Senior Limited (the 'company') for the year ended 31 May 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor 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 ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

 

We have nothing to report in this regard.

WEST & SENIOR LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WEST & SENIOR LIMITED (CONTINUED)
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

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

 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

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

Auditor 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WEST & SENIOR LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WEST & SENIOR LIMITED (CONTINUED)
- 8 -

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Matthews BFP ACA FCCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Liverpool, United Kingdom
3 February 2025
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
WEST & SENIOR LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
12,182,726
15,299,833
Cost of sales
(7,371,845)
(10,467,505)
Gross profit
4,810,881
4,832,328
Distribution costs
(939,811)
(1,074,858)
Administrative expenses
(3,082,115)
(2,767,779)
Operating profit
4
788,955
989,691
Interest payable and similar expenses
8
(30,843)
(46,883)
Profit before taxation
758,112
942,808
Tax on profit
9
(195,515)
(129,079)
Profit for the financial year
562,597
813,729

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

The notes on pages 13 to 26 form part of these financial statements.

WEST & SENIOR LIMITED
BALANCE SHEET
AS AT 31 MAY 2024
31 May 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,335,430
1,417,885
Current assets
Stocks
11
1,366,051
1,340,625
Debtors
12
2,187,269
2,322,871
Cash at bank and in hand
2,483,887
2,465,084
6,037,207
6,128,580
Creditors: amounts falling due within one year
13
(2,553,170)
(2,244,248)
Net current assets
3,484,037
3,884,332
Total assets less current liabilities
4,819,467
5,302,217
Creditors: amounts falling due after more than one year
14
(505,576)
(809,720)
Provisions for liabilities
Deferred tax liability
16
192,712
199,915
(192,712)
(199,915)
Net assets
4,121,179
4,292,582
Capital and reserves
Called up share capital
18
93,751
93,751
Share premium account
352,125
352,125
Capital redemption reserve
201,397
201,397
Profit and loss reserves
3,473,906
3,645,309
Total equity
4,121,179
4,292,582

The notes on pages 13 to 26 form part of these financial statements.

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

The financial statements were approved by the board of directors and authorised for issue on 3 February 2025 and are signed on its behalf by:
Mr B J Daniels
Director
Company registration number 00508673 (England and Wales)
WEST & SENIOR LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 June 2022
93,751
352,125
201,397
3,465,079
4,112,352
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
-
-
813,729
813,729
EOT capital contributions
18
-
0
-
0
-
(633,499)
(633,499)
Balance at 31 May 2023
93,751
352,125
201,397
3,645,309
4,292,582
Year ended 31 May 2024:
Profit and total comprehensive income for the year
-
-
-
562,597
562,597
EOT capital contributions
18
-
0
-
0
-
(734,000)
(734,000)
Balance at 31 May 2024
93,751
352,125
201,397
3,473,906
4,121,179
WEST & SENIOR LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
1,266,396
1,405,714
Interest paid
(30,843)
(46,883)
Income taxes paid
(143,144)
(180,642)
Net cash inflow from operating activities
1,092,409
1,178,189
Investing activities
Purchase of tangible fixed assets
(46,668)
(88,218)
Proceeds on disposal of tangible fixed assets
-
0
4,569
Net cash used in investing activities
(46,668)
(83,649)
Financing activities
EOT Capital Contributions
(734,000)
(633,499)
Repayment of bank loans
(292,938)
(282,182)
Net cash used in financing activities
(1,026,938)
(915,681)
Net increase in cash and cash equivalents
18,803
178,859
Cash and cash equivalents at beginning of year
2,465,084
2,286,225
Cash and cash equivalents at end of year
2,483,887
2,465,084
WEST & SENIOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 13 -
1
Accounting policies
Company information

West & Senior Limited is a private company limited by shares incorporated in England and Wales. The registered office is Milltown Street, Radcliffe, Manchester, M26 1WE.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006. The financial statements present information about the company as an individual entity and not about its group.

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

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

1.2
Going concern

Having assessed the Company's financial positiontrue, budgets and cash flow forecasts, including stress testing these budgets, the Directors have a reasonable expectation that the Company has sufficient resources to continue in operational existence for more than one year from the signing of these accounts. These expectations have taken in to account the actual and anticipated ongoing financial impact resulting from increased inflationary pressures and supply chain shortages. The Directors conclude that the Company can continue and to meet its liabilities as they fall due, for a period of at least one year from the date of signature of the audit report for the year ended 31 May 2024. On this basis, the Directors consider that the going concern basis is appropriate for these financial statements.

1.3
Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. Turnover is measured as the fair value of the consideration received or receivable, excluding VAT and other sales taxes. Turnover is recognised dependent on the incoterms of the sale, usually on the dispatch of goods as the Directors believe that this is when the Company have transferred significant risk and rewards of ownership to the buyer. Turnover to overseas customers is reviewed on an individual basis and may be deferred where the risk and rewards of the ownership do not transfer until delivery at port, or at the end destination.

1.4
Tangible fixed assets

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

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

Land & buildings - long & short leasehold
0-5% straight line
Plant & machinery
15% reducing balance
Motor Vehicles
25% reducing balance
Fixtures, Fittings, computers & office equipment
15% reducing balance & 25% straight line
WEST & SENIOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 14 -

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

1.5
Impairment of fixed assets

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

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

 

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

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

1.6
Stocks

Stocks are stated at the lower of average cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes direct costs and an appropriate proportion of fixed and variable overheads

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

1.7
Cash and cash equivalents

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

1.8
Financial instruments

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

 

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

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

WEST & SENIOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial assets

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

 

All of the Company's assets are considered basic financial assets.

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

WEST & SENIOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

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

 

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

 

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

Other financial liabilities

All of the Company's liabilities are considered basic financial liabilities.

Derecognition of financial liabilities

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

1.9
Equity instruments

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

1.10
Taxation

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

Current tax

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

Deferred tax

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

 

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

WEST & SENIOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 17 -
1.11
Employee benefits

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

 

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

 

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

1.12
Retirement benefits

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

1.13
Leases

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

1.14
Foreign exchange

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

1.15

Contributions to The West & Senior Employee Ownership Trust

The West & Senior Employee Ownership Trust was established on 7 March 2019 in order to secure the continuation of the company as a successful, independent and professionally managed enterprise with an employee owned ethos. To achieve this the Trust purchased 89.33% of the company share capital from the owner and now holds these shares for the benefit of all Company employees. The shares never vest in individual employees.

 

The Corporate Trustee of The West & Senior Employee Ownership Trust is West & Senior Trustees Limited, a dormant company limited by guarantee. West & Senior Trustees Limited is the Parent Company of West & Senior Limited, but does not control the Company.

 

Funding for the purchase of the Company share capital is derived from the Company, which pays contributions to the Trust. These contributions are accounted for as payments out of Company distributable reserves.

 

This arrangement could be regarded as as an intermediate payment arrangement under FRS102. However, The West & Senior Employee Ownership Trust is part of the Company ownership and governance structure and is designed to operate alongside or independently of the board of directors of the Company. The Company does not exercise control over The West & Senior Employee Ownership Trust and consequently the Directors consider that the substance of the arrangement is that both the Company and the Trust are separate entities and are more truly and fairly accounted for by reflecting this separation than by consolidating their respective accounts.

 

Accordingly, the activities of the Trust are not consolidated with the company.

WEST & SENIOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 18 -
2
Judgements and key sources of estimation uncertainty

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

 

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful Economic Life of Assets

Tangible fixed assets are depreciated over their useful lives, taking into account residual values, where appropriate. The actual lives of the assets, depreciation rates and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future conditions, the remaining life of the asset and projected disposal values.

Stock Provision

Stocks are valued at the lower cost and net realisable value. Where necessary, provisions for slow moving and obsolete stocks are made and calculation of these provisions requires elements of judgement. Provisions are based on both the age and use of the stock in the last 6 to 24 months; with provision made as a percentage of these values.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sale of Goods
12,182,726
15,299,833
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
7,034,438
7,860,645
Europe
3,595,994
6,255,494
Rest of the world
1,552,294
1,183,694
12,182,726
15,299,833
WEST & SENIOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 19 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
36,460
12,106
Depreciation of owned tangible fixed assets
122,151
133,533
Loss on disposal of tangible fixed assets
6,972
867
Operating lease charges
169,004
159,857
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
19,700
18,600
6
Employees

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

2024
2023
Number
Number
Management and administration
28
28
Production
28
28
Distribution and sales
2
2
Total
58
58

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,626,312
2,627,044
Social security costs
289,193
308,163
Pension costs
156,712
156,110
3,072,217
3,091,317
WEST & SENIOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 20 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
808,998
899,004
Company pension contributions to defined contribution schemes
65,711
62,808
874,709
961,812

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2023 - 5).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
159,236
175,947
Company pension contributions to defined contribution schemes
16,136
15,655
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
30,843
46,883
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
209,558
143,144
Adjustments in respect of prior periods
321
-
0
Total current tax
209,879
143,144
Deferred tax
Origination and reversal of timing differences
(14,364)
(11,254)
Changes in tax rates
-
0
(2,811)
Total deferred tax
(14,364)
(14,065)
Total tax charge
195,515
129,079
WEST & SENIOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
9
Taxation
(Continued)
- 21 -

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

2024
2023
£
£
Profit before taxation
758,112
942,808
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
189,528
188,587
Tax effect of expenses that are not deductible in determining taxable profit
2,150
3,040
Tax effect of income not taxable in determining taxable profit
-
0
(2,337)
Adjustments in respect of prior years
(6,840)
-
0
Effect of change in corporation tax rate
-
0
(2,811)
Deferred tax adjustments in respect of prior years
7,160
-
0
Fixed asset timing differences
3,517
-
0
Additional deduction for R&D expenditure
-
0
(57,400)
Taxation charge for the year
195,515
129,079

From 1 April 2023 the government have enacted changes to the corporation tax rate, increasing the main tax rate to 25% for companies with augmented profits greater than £250,000. For companies where financial year ends straddle two tax years, pre and post the increase of corporation tax to 25%, profits are apportioned in the ratio to account for the number of months under 19% taxation rate and 25% rate. The effective tax rate for the year ended 31 May 2023 was therefore 20.00%.

WEST & SENIOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 22 -
10
Tangible fixed assets
Land & buildings - long & short leasehold
Plant & machinery
Fixtures, Fittings, computers & office equipment
Total
£
£
£
£
Cost
At 1 June 2023
1,425,272
2,388,053
944,680
4,758,005
Additions
-
0
32,842
13,826
46,668
Disposals
-
0
(247,145)
(370,626)
(617,771)
At 31 May 2024
1,425,272
2,173,750
587,880
4,186,902
Depreciation and impairment
At 1 June 2023
521,886
2,018,287
799,947
3,340,120
Depreciation charged in the year
20,013
60,143
41,995
122,151
Eliminated in respect of disposals
-
0
(240,430)
(370,369)
(610,799)
At 31 May 2024
541,899
1,838,000
471,573
2,851,472
Carrying amount
At 31 May 2024
883,373
335,750
116,307
1,335,430
At 31 May 2023
903,386
369,766
144,733
1,417,885

The carrying value of land and buildings comprises:

2024
2023
£
£
Long leasehold
881,798
901,636
Short leasehold
1,575
1,750
883,373
903,386
11
Stocks
2024
2023
£
£
Raw materials and consumables
1,073,408
966,461
Finished goods and goods for resale
292,643
374,164
1,366,051
1,340,625

An impairment loss of £58,184 (2023 - £95,242) was recognised in the profit or loss during the year in relation to slow-moving and obsolete stock.

WEST & SENIOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 23 -
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,014,951
2,171,895
Other debtors
20,216
18,810
Prepayments and accrued income
152,102
132,166
2,187,269
2,322,871
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
15
304,144
292,938
Trade creditors
1,561,061
1,507,068
Corporation tax
202,718
143,144
Other taxation and social security
74,109
80,923
Other creditors
5,486
6,953
Accruals and deferred income
405,652
213,222
2,553,170
2,244,248

Details of bank loans due within and after more than one year secured against the company are included in note 15 of the financial statements.

14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
505,576
809,720
15
Loans and overdrafts
2024
2023
£
£
Bank loans
809,720
1,102,658
Payable within one year
304,144
292,938
Payable after one year
505,576
809,720

 

WEST & SENIOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
15
Loans and overdrafts
(Continued)
- 24 -

Bank loans commenced on 24th December 2021, are repayable over 60 months and interest is being charged at a fixed rate of 3.78%.

 

Bank loans are secured by way of a debenture granted by the company in favour of Barclays PLC, as well as a legal charge over the land at Vale Mill, Milltown Street, Radcliffe, Manchester.

16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
154,545
161,748
Capital gain
38,167
38,167
192,712
199,915
2024
Movements in the year:
£
Liability at 1 June 2023
199,915
Credit to profit or loss
(7,203)
Liability at 31 May 2024
192,712

The deferred tax liability set out above is expected to reverse in between 12 and 36 months and relates to accelerated capital allowances that are expected to mature within the same period. Deferred tax is calculated at the corporation tax rate of 25%.

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
156,712
156,110

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

WEST & SENIOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 25 -
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
93,751
93,751
93,751
93,751
19
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
76,635
55,197
Between two and five years
152,176
62,189
In over five years
20,984
4,839
249,795
122,225
20
Ultimate controlling party

The majority shareholder is the Corporate Trustee of the Employee Ownership Trust, West & Senior Trustees Limited; a dormant Company Limited by Guarantee, registered in England & Wales.

 

West & Senior Trustees Limited operates under a terms of reference to represent the interests of the beneficences of the Trust, by providing oversight, additional scrutiny and challenge to the operating board; however it does not have ultimate control of West & Senior Limited. As such, the accounts for West & Senior Limited represent the trade of the Company and no group accounts are produced, as detailed, in note 1.15 of the financial statements.

 

The common directors Mr B J Daniels and Mr S R Senior are deemed to control the Company.

 

 

WEST & SENIOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 26 -
21
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
562,597
813,729
Adjustments for:
Taxation charged
195,515
129,079
Finance costs
30,843
46,883
Loss on disposal of tangible fixed assets
6,972
867
Depreciation and impairment of tangible fixed assets
122,151
133,533
Movements in working capital:
(Increase)/decrease in stocks
(25,426)
662,386
Decrease in debtors
135,602
387,218
Increase/(decrease) in creditors
238,142
(767,981)
Cash generated from operations
1,266,396
1,405,714
22
Analysis of changes in net funds
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
2,465,084
18,803
2,483,887
Borrowings excluding overdrafts
(1,102,658)
292,938
(809,720)
1,362,426
311,741
1,674,167
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