Company registration number 02138711 (England and Wales)
ACORN WEB OFFSET LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
ACORN WEB OFFSET LIMITED
COMPANY INFORMATION
Directors
M G Roberts
M R Carry
C Rennison
Company number
02138711
Registered office
Loscoe Close
Normanton Industrial Estate
Normanton
WF6 1TW
Auditor
Hart Shaw LLP
Europa Link
Sheffield Business Park
Sheffield
S9 1XU
ACORN WEB OFFSET LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Notes to the financial statements
10 - 21
ACORN WEB OFFSET LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report and financial statements for the year ended 30 September 2024.
Fair review of the business
The directors are pleased to report revenue for the year stood at £25,478,987, which is a slight decrease of 2.96% on the previous year, this resulted in a profit for the year of £942,772. EBITDA in the year was £2,315,361.
Despite the small drop in turnover, customer activity continued to increase with reduced input costs being passed back to the customer, wherever possible, resulting in a slightly lower turnover figure. Paper supply problems have eased and whilst prices remain high customers did benefit from reduced paper prices. Acorn Web Offset Ltd prides itself upon strong supplier relationships, which continued through the year to help drive efficiencies for its customers.
Margins continue to be affected as customers were approached with the promise of lower pricing. Acorn Web Offset's reputation for exceptional customer service combined with negotiation and working together to change the product specification to a more efficient format meant that nearly all clients were retained. The small number of customers who moved away did so at pricing levels that Acorn Web Offset were not prepared to compete with, or the format of the products did not best suit our equipment.
During the year the ultimate parent company, Loscoe Investments Limited, entered into a share buyback agreement with N R Alexander, who resigned as a company director on the 31st October 2023.
Capital investments of £438,538 were made during the year. These were made to further support the company’s ongoing strategic direction, specifically improving automation and improving energy efficiencies to allow the company to manage rising manpower costs and reduce its energy usage. Further investments aligned to this strategy are planned for 2024/25.
Acorn Web Offset continued its marketing activity across digital and print media, the year saw the launch of a new website and company video to better reflect the internal and external aims of the business’s strategy. This is not only to portray Acorn as being the best placed printer for A4 and A5 multi pagination magazines, catalogues and brochures, but to outline that we are one of the best employers in the printing industry and we champion the skill and experience of our people.
The company extended its lease on its main business unit, enabling security for the company to plan the next key investment opportunities.
There were no bad debts to report within the year.
Principal risks and uncertainties
The performance of the company is dependent on the UK economy, energy wholesale prices have been falling throughout 2023/24 however they remain high compared to pre-pandemic levels. High inflation, interest rates & wage increases have offset any reductions in supplier prices which would have been expected, with only minor reductions achieved throughout the year.
The company has hedged its risks in terms of credit insurance and with its energy where practicably possible. This has provided some stability to production costs for customers during a very volatile period of trading. The hedging of future gas and electricity contracts remains under review.
The company is continually investing to help manage future increases. Whilst these investments will help, it’s unlikely that this will fully protect the company and its customers should energy, inflation and interest rates remain at high levels. The company is also exposed to movement in the price of its key raw materials and consumables such as paper, ink, and plates. However, where possible, contracts are placed with its suppliers to reduce the risk. Where price increases to our customers are necessary, these are passed on in a transparent and fair manner.
Cash and working capital are reviewed by the whole management team on a weekly basis combined with regular reviews of business performance against budget and remedial action undertaken in the event of variance.
ACORN WEB OFFSET LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Environmental matters
Acorn Web Offset Limited places a strong emphasis on environmental responsibility. The company continues to work hard to maintain its impressive performance in its environmental credentials and is pleased to report a positive audit for ISO 14001.
The company is particularly mindful of its environmental impact and will continue to make investments which both reduce these impacts and help control or reduce costs. The company has already delivered projects which will both reduce its energy and water consumption, whilst increasing automation.
In addition, the company has embarked on projects that will reduce its Carbon impacts by reducing its consumption of resources though material efficiency and reuse, recycling programs complemented by energy reduction projects. The company intends to continue to report its progress throughout the year though its various communication channels.
Acorn Web has also been working to measure and reduce its scopes 1-3 carbon emissions over the past two years. It is pleased to report that, through its own and supplier inventions, the average kg eCo2 per delivered tonne product has reduced by 16% between financial year ending September 22 to September 23. Further improvements are forecast to be ongoing.
M G Roberts
Director
27 February 2025
ACORN WEB OFFSET LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company is that of a web offset and colour printer.
Results and dividends
The results for the year are set out on page 8.
An interim ordinary dividend was paid amounting to £1,002,048. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
M G Roberts
N R Alexander
(Resigned 31 October 2023)
M R Carry
C Rennison
Future developments
The market and manufacturing strategies will continue to be supported by relevant investments where appropriate. During the next financial year, further investment is planned for the binding department and the company are seeking to identify ways of reducing rising energy costs.
Auditor
In accordance with the company's articles, a resolution proposing that Hart Shaw LLP be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
ACORN WEB OFFSET LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
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.
On behalf of the board
M G Roberts
Director
27 February 2025
ACORN WEB OFFSET LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ACORN WEB OFFSET LIMITED
- 5 -
Opinion
We have audited the financial statements of Acorn Web Offset Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of income and retained earnings, the balance sheet 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:
give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
ACORN WEB OFFSET LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ACORN WEB OFFSET LIMITED
- 6 -
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 and the directors' report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and 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.
Extent to which the audit was considered capable of detecting irregularities, including fraud and the audit response
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.
At the planning stage we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management, as required by auditing standards. The potential effect of any laws and regulation on the financial statements can vary considerably. There are laws and regulations that directly affect the financial statements (e.g. the Companies Act) as well as many other operational laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements. Owing to the size, nature and complexity of the organisation and the applicable laws and regulations to which it must adhere, the risk of material misstatement was deemed to be moderate, therefore the procedures performed by the audit team were limited to:
Communicating identified laws and regulations at planning throughout the audit team to remain alert to any indications of non-compliance throughout the audit.
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as non-compliance with laws and regulations.
Reviewing minutes of meetings of those charged with governance.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Reviewing relevant certification, being for ISO 45001 and ISO 14001 to ensure the company is compliant with the latest laws and regulations which are of key importance to the continuation of the business.
ACORN WEB OFFSET LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ACORN WEB OFFSET LIMITED
- 7 -
We have assessed the overall susceptibility of the financial statements to material misstatement due to fraud. Management override is the most likely way in which fraud might present itself and as such is inherently high risk on any audit. Management override, which may cause there to be a material misstatement within the financial statements, may present itself in a number of ways, for example:
Override of internal controls (e.g. segregation of duties)
Entering into transactions outside the normal course of business, especially with related parties
Fraudulent revenue recognition, including fictitious sales and sales being recorded in the wrong period
In order to reduce the risk of material misstatement to an acceptable level, numerous audit procedures were performed including:
Enquiries of management as to whether they had any knowledge of any actual or suspected fraud
Review of material journal entries made throughout the year as well as those made to prepare the financial statements
Reviewing minutes of meetings of those charged with governance
Reviewing the underlying rationale behind transactions in order to assess whether they were outside the normal course of business
Increased revenue substantive testing across all material income streams
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected material misstatements in the financial statements, even though we have performed our audit in accordance with auditing standards. Furthermore, as with all audits, there is a higher risk of irregularities (especially those relating to fraud) being undetected, as these may involve the override of internal controls, collusion, intentional omissions and misrepresentations etc. We are not responsible for preventing non-compliance or fraud and therefore cannot be expected to detect all instances of such. Our audit was not designed to identify misstatements or other irregularities that would not be considered to be material to the financial statements. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
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.
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.
Adam Shield (Senior Statutory Auditor)
For and on behalf of Hart Shaw LLP
27 February 2025
Chartered Accountants
Statutory Auditor
Europa Link
Sheffield Business Park
Sheffield
S9 1XU
ACORN WEB OFFSET LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
25,478,987
26,257,625
Cost of sales
(18,428,614)
(19,835,219)
Gross profit
7,050,373
6,422,406
Administrative expenses
(5,673,330)
(4,780,265)
Other operating income
4,091
4,427
Operating profit
4
1,381,134
1,646,568
Interest receivable and similar income
7
595
2,112
Interest payable and similar expenses
8
(109,986)
(145,857)
Profit before taxation
1,271,743
1,502,823
Tax on profit
9
(328,971)
(327,964)
Profit for the financial year
942,772
1,174,859
Retained earnings brought forward
5,745,193
5,309,490
Dividends
10
(1,002,048)
(739,156)
Retained earnings carried forward
5,685,917
5,745,193
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There is no other comprehensive income other than that passing through the profit and loss account.
ACORN WEB OFFSET LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,803,899
4,299,808
Current assets
Stocks
12
1,043,671
691,947
Debtors
13
8,306,361
8,113,933
Cash at bank and in hand
201,638
547,891
9,551,670
9,353,771
Creditors: amounts falling due within one year
14
(5,076,723)
(4,478,760)
Net current assets
4,474,947
4,875,011
Total assets less current liabilities
8,278,846
9,174,819
Creditors: amounts falling due after more than one year
15
(1,028,578)
(1,861,861)
Provisions for liabilities
Deferred tax liability
18
480,300
497,600
(480,300)
(497,600)
Government grants
19
(16,499)
(2,613)
Net assets
6,753,469
6,812,745
Capital and reserves
Called up share capital
21
1,015,000
1,015,000
Share premium account
52,552
52,552
Profit and loss reserves
5,685,917
5,745,193
Total equity
6,753,469
6,812,745
The financial statements were approved by the board of directors and authorised for issue on 27 February 2025 and are signed on its behalf by:
M G Roberts
Director
Company Registration No. 02138711
ACORN WEB OFFSET LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
1
Accounting policies
Company information
Acorn Web Offset Limited is a private company, limited by shares and incorporated in England and Wales. The registered office is Loscoe Close, Normanton Industrial Estate, Normanton, WF6 1TW.
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 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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Loscoe Investments Ltd. These consolidated financial statements are available from its registered office, Loscoe Close, Normanton Industrial Estate, Normanton, WF6 1TW.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
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.
ACORN WEB OFFSET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 11 -
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:
Short leasehold land and buildings
Life of lease
Plant and machinery
3 - 10 years straight line
Fixtures, fittings & equipment
3 - 10 years straight line
Computer equipment
3 - 10 years straight line
Motor vehicles
5 years straight line
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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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.
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.
ACORN WEB OFFSET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 12 -
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.
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 group 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.
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
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
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.
ACORN WEB OFFSET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
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.
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
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
ACORN WEB OFFSET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.15
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.
1.16
Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. A presentational adjustment has been made within cost of sales to remove subcontract labour from wages and salaries. Wages and salaries reported in 2023 were £5,081,526.
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.
There are no estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.
3
Turnover
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
25,478,987
26,257,625
The turnover is a single class of business wholly within the United Kingdom.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(4,091)
(4,427)
Fees payable to the company's auditor for the audit of the company's financial statements
19,200
18,500
Depreciation of owned tangible fixed assets
328,737
297,373
Depreciation of tangible fixed assets held under finance leases
605,490
653,627
Profit on disposal of tangible fixed assets
(9,003)
(1,565)
Operating lease charges
392,429
302,000
ACORN WEB OFFSET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration
19
20
Sales
5
5
Production
105
104
Total
129
129
Their aggregate remuneration comprised:
Restated
2024
2023
£
£
Wages and salaries
4,673,798
4,605,089
Social security costs
474,375
465,753
Pension costs
289,699
276,002
5,437,872
5,346,844
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
23,792
56,534
Company pension contributions to defined contribution schemes
65,615
65,593
89,407
122,127
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 4).
It is considered that the directors are the key management personnel of the company.
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
595
2,112
ACORN WEB OFFSET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
44,325
53,229
Interest on finance leases and hire purchase contracts
65,661
92,628
109,986
145,857
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
346,271
327,464
Deferred tax
Origination and reversal of timing differences
(17,300)
500
Total tax charge
328,971
327,964
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
1,271,743
1,502,823
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
317,936
330,771
Tax effect of expenses that are not deductible in determining taxable profit
8,734
4,773
Tax effect of income not taxable in determining taxable profit
(1,023)
(1,318)
Depreciation on assets not qualifying for tax allowances
3,324
3,496
Capital allowance in respect of superdeductions
(9,758)
Taxation charge for the year
328,971
327,964
10
Dividends
2024
2023
£
£
Interim paid
1,002,048
739,156
ACORN WEB OFFSET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
11
Tangible fixed assets
Short leasehold land and buildings
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 October 2023
406,682
13,221,155
195,910
390,726
140,897
14,355,370
Additions
12,340
359,522
22,489
27,425
16,762
438,538
Disposals
(312,336)
(8,797)
(20,066)
(341,199)
At 30 September 2024
419,022
13,268,341
209,602
398,085
157,659
14,452,709
Depreciation and impairment
At 1 October 2023
249,521
9,289,418
95,024
322,341
99,258
10,055,562
Depreciation charged in the year
33,268
822,857
27,333
35,578
15,191
934,227
Eliminated in respect of disposals
(312,336)
(8,797)
(19,846)
(340,979)
At 30 September 2024
282,789
9,799,939
113,560
338,073
114,449
10,648,810
Carrying amount
At 30 September 2024
136,233
3,468,402
96,042
60,012
43,210
3,803,899
At 30 September 2023
157,161
3,931,737
100,886
68,385
41,639
4,299,808
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and machinery
2,729,461
3,334,951
12
Stocks
2024
2023
£
£
Raw materials and consumables
544,102
477,801
Work in progress
499,569
214,146
1,043,671
691,947
ACORN WEB OFFSET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,588,693
2,775,662
Amounts owed by group undertakings
5,144,413
4,903,712
Other debtors
272,683
282,287
Prepayments and accrued income
300,572
152,272
8,306,361
8,113,933
Trade debtors totalling £2,440,603 (2023 - £2,375,747) were subject to invoice discounting arrangements.
The amounts owed by group undertakings are interest free, unsecured, and are repayable within 6 months of request.
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
380,098
200,000
Obligations under finance leases
17
634,819
666,010
Trade creditors
3,190,808
2,641,293
Corporation tax
205,778
327,464
Other taxation and social security
121,713
116,690
Other creditors
28,285
36,521
Accruals and deferred income
515,222
490,782
5,076,723
4,478,760
The obligations under finance leases are secured as disclosed in note 22.
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
166,667
366,667
Obligations under finance leases
17
861,911
1,495,194
1,028,578
1,861,861
The obligations under finance leases are secured as disclosed in note 22.
ACORN WEB OFFSET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
16
Loans and overdrafts
2024
2023
£
£
Bank loans
366,667
566,667
Invoice discounting
180,098
546,765
566,667
Payable within one year
380,098
200,000
Payable after one year
166,667
366,667
The invoice discounting facility is secured by fixed and floating charges over all assets and undertakings of the company.
The bank loan is paid in 72 monthly instalments, maturing June 2026. Interest is charged at a rate of 3.99% above the Bank of England Base Rate. The loan is secured as disclosed in note 22.
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
674,942
742,022
In two to five years
882,236
1,558,688
1,557,178
2,300,710
Less: future finance charges
(60,448)
(139,506)
1,496,730
2,161,204
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 - 7 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
18
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
486,570
500,260
Short term timing differences
(6,270)
(2,660)
480,300
497,600
ACORN WEB OFFSET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
18
Deferred taxation
(Continued)
- 20 -
2024
Movements in the year:
£
Liability at 1 October 2023
497,600
Credit to profit or loss
(17,300)
Liability at 30 September 2024
480,300
19
Government grants
2024
2023
£
£
Arising from government grants
16,499
2,613
16,499
2,613
Deferred income is included in the financial statements as follows:
2024
2023
£
£
Shown as deferred income on the face of the balance sheet
16,499
2,613
16,499
2,613
In 2014 a grant was awarded towards the initial acquisition of plant and machinery and towards the creation of jobs and continued employment in these new jobs The element of the grant relating to continued employment is being released over the period the company is committed to employing the individuals.
During the year, a grant was awarded for business sustainability support from West Yorkshire Combined Authority. The grant was used to purchase tangible fixed assets and the grant is being released over the useful life of these assets.
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
289,699
276,002
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.
ACORN WEB OFFSET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,015,000
1,015,000
1,015,000
1,015,000
22
Financial commitments, guarantees and contingent liabilities
The bank holds 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 3 September 2009. At 30 September 2024, the amount of group debt not included within this company's balance sheet amounted to £nil (2023 - £nil).
23
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
450,488
315,251
Between two and five years
1,522,948
925,788
In over five years
3,409,000
564,502
5,382,436
1,805,541
24
Related party transactions
The company has taken advantage of the exemption relating to the exclusion of reporting transactions with wholly owned group companies.
25
Ultimate controlling party
The ultimate parent company is Loscoe Investments Ltd, a company registered in England and Wales.
The Company is a subsidiary of Loscoe Investments Ltd which is both the smallest and largest group in which the Company is a member and for which group financial statements are prepared. Copies of the consolidated financial statements can be obtained from that company's registered office.
The immediate parent company is Investment In Media Limited, a company registered in England and Wales.
2024-09-302023-10-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.310M G RobertsN R AlexanderM R CarryC Rennison021387112023-10-012024-09-3002138711bus:Director12023-10-012024-09-3002138711bus:Director32023-10-012024-09-3002138711bus:Director42023-10-012024-09-3002138711bus:Director22023-10-012024-09-3002138711bus:RegisteredOffice2023-10-012024-09-30021387112024-09-30021387112022-10-012023-09-3002138711core:RetainedEarningsAccumulatedLosses2023-09-3002138711core:RetainedEarningsAccumulatedLosses2022-09-3002138711core:ShareCapital2024-09-3002138711core:ShareCapital2023-09-3002138711core:SharePremium2024-09-3002138711core:SharePremium2023-09-3002138711core:RetainedEarningsAccumulatedLosses2024-09-3002138711core:RetainedEarningsAccumulatedLosses2023-09-30021387112023-09-3002138711core:RetainedEarningsAccumulatedLosses2022-10-012023-09-3002138711core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-09-3002138711core:PlantMachinery2024-09-3002138711core:FurnitureFittings2024-09-3002138711core:ComputerEquipment2024-09-3002138711core:MotorVehicles2024-09-3002138711core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-09-3002138711core:PlantMachinery2023-09-3002138711core:FurnitureFittings2023-09-3002138711core:ComputerEquipment2023-09-3002138711core:MotorVehicles2023-09-3002138711core:CurrentFinancialInstrumentscore:WithinOneYear2024-09-3002138711core:CurrentFinancialInstrumentscore:WithinOneYear2023-09-3002138711core:Non-currentFinancialInstrumentscore:AfterOneYear2024-09-3002138711core:Non-currentFinancialInstrumentscore:AfterOneYear2023-09-3002138711core:CurrentFinancialInstruments2024-09-3002138711core:CurrentFinancialInstruments2023-09-3002138711core:Non-currentFinancialInstruments2024-09-3002138711core:Non-currentFinancialInstruments2023-09-3002138711core:LandBuildingscore:LongLeaseholdAssets2023-10-012024-09-3002138711core:PlantMachinery2023-10-012024-09-3002138711core:FurnitureFittings2023-10-012024-09-3002138711core:ComputerEquipment2023-10-012024-09-3002138711core:MotorVehicles2023-10-012024-09-3002138711core:PreviouslyStatedAmount2023-10-012024-09-3002138711core:PreviouslyStatedAmount2022-10-012023-09-3002138711core:UKTax2023-10-012024-09-3002138711core:UKTax2022-10-012023-09-300213871112023-10-012024-09-300213871112022-10-012023-09-300213871122023-10-012024-09-300213871122022-10-012023-09-3002138711core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-09-3002138711core:PlantMachinery2023-09-3002138711core:FurnitureFittings2023-09-3002138711core:ComputerEquipment2023-09-3002138711core:MotorVehicles2023-09-30021387112023-09-3002138711core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-10-012024-09-3002138711core:WithinOneYear2024-09-3002138711core:WithinOneYear2023-09-3002138711core:BetweenTwoFiveYears2024-09-3002138711core:BetweenTwoFiveYears2023-09-3002138711core:MoreThanFiveYears2024-09-3002138711core:MoreThanFiveYears2023-09-3002138711bus:PrivateLimitedCompanyLtd2023-10-012024-09-3002138711bus:FRS1022023-10-012024-09-3002138711bus:Audited2023-10-012024-09-3002138711bus:FullAccounts2023-10-012024-09-30xbrli:purexbrli:sharesiso4217:GBP