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Registered number: 00202702













 
ABURNET LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




































Page Kirk LLP
Chartered Accountants and Statutory Auditors
Sherwood House
7 Gregory Boulevard
Nottingham
NG7 6LB


 
ABURNET LIMITED
 


CONTENTS



Page
Company Information
1
Group Strategic Report
2 - 4
Directors' Report
5
Directors' Responsibilities Statement
6
Independent Auditors' Report
7 - 10
Consolidated Profit and Loss Account
11
Consolidated Statement of Comprehensive Income
12
Consolidated Balance Sheet
13 - 14
Company Balance Sheet
15 - 16
Consolidated Statement of Changes in Equity
17 - 18
Company Statement of Changes in Equity
19 - 20
Consolidated Statement of Cash Flows
21 - 22
Notes to the Financial Statements
23 - 43



 
ABURNET LIMITED
 

 
COMPANY INFORMATION


Directors
Mr R J S Burnet 
Mrs W Smith 
Mr P D M Parsons (resigned 28 July 2023)




Company secretary
Mr R J S Burnet



Registered number
00202702



Registered office
Manners Avenue
Manners Industrial Estate

Ilkeston

Derbyshire

DE7 8EF




Independent auditors
Page Kirk LLP

Sherwood House

7 Gregory Boulevard

Nottingham

NG7 6LB




Page 1


 
ABURNET LIMITED
 

 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report for the year ended 31 December 2023.

Business review
 
The group is the worlds leading manufacturer of independently market certified hair containment solutions for critical industries, focussed on food processing and foodservice sectors, marketed to countries in most continents around the globe. Many of the group’s products and free service solutions are covered by international patents, both granted and pending and are branded. The company is uniquely positioned and market recognised as an authority in this chosen specialism which affords market strength. The group designs its products around the principle of best cost – all costs have to add value in the target end customers eyes and these costs are optimised for the market volume with global sales network offering economies of scale where possible.
As an integrated manufacturer from yarn through to finished, branded, packed product with manufacturing in both England and Sri Lanka the group has control over the majority of its supply chain and cost structure. Yarn is our main input cost which is an international commodity with little supply cost impact on the processing location whilst our fabric machines are running at above industry standard speeds for above average productivity further protecting business resilience.
The group employs people that have in depth knowledge in fabric production, finishing and automated conversion techniques which enables our chosen specialism to continue to strive. 
During the year sales increased 20% across a variety of geographical markets demonstrating the strength of the company’s market offering.
The company invested in refurbishing part of the freehold Long Eaton site ready to receive new yarn processing equipment – some of which is the first of its type in the UK. This investment will help ensure we retain a market leading cost structure for our chosen areas of expertise and afford us additional capacities for both hair containment and other new product areas.
The group continues to develop residential housing for letting as a long term investment.

Page 2


 
ABURNET LIMITED
 


GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
The principal risks to the business are considered to be:
Price risk - The group has an optimised cost base. The main item outside our direct control is yarn which is an international commodity price. Yarn sourcing is reviewed and trialled on a regular basis with consistency of supply a key priority for sequential manufacturing operations to control quality. Energy costs are controlled by review which again are industry wide.
Credit risk - The group has debtor insurance and as a regular supplier to repeat customers can manage debtor risk effectively. As the group operates using its own cash reserves this risk to the business is well controlled. 
Liquidity risk - The group has a low risk acid test ratio of 1.6, controlled as detailed above.
Cash flow risk - See above re credit insurance, repeat supply and self financing.
Financial risk - The group is naturally hedged from currency fluctuations due to a balance of costs and sales revenue in foreign currencies.
Employment risk - The group recognises the relative low level of skilled labour in the fabric manufacturing aspect of the business - made worse from the impact of Brexit and has invested in developing its own in house detailed skills competency matrix with published grades for its main activities of warping, knitting and textile specialisms. 

Financial key performance indicators
 
The directors considering the following to be the financial key performance indicators:
Gross margin - The group aims to keep this above 45%. The group's gross margin this year was 56.86%.
Net margin - The group aims to keep this above 15%. The group's net margin this year was 4.09%.
Aged debtors days - The group aims to keep this at around 60 to 90 days. The group's debtors days this year was 76 days.
Aged creditors days - The group aims to keep this between 40 - 60 days. The group's creditors days this year was 45 days.
Stock turnover - The group aims to keep stock turnover around 4 - 5 times. The group's stock turnover this year was 4.00.

Other key performance indicators
 
The directors considering the following to be the other key performance indicators:
Fabric machine percentage running times - This is monitored to ensure the group can continue to optimise it's production time and spot any potential downtime unaccounted for.
Operator quality and efficiency levels daily - This is monitored to ensure that operators are producing quality products and fast rate, while also understanding any deficiencies in training of operators. 
% Orders Dispatched Complete and On Time - This is monitored to report on customer satisfaction. 
Quantity Days to Replenish WIP stocks - This is used to measure and set internal stock holding to meet demand.

Page 3


 
ABURNET LIMITED
 


GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


This report was approved by the board on 14 March 2025 and signed on its behalf.



................................................
Mr R J S Burnet
Director

Page 4


 
ABURNET LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Results and dividends

The profit for the year, after taxation, amounted to £219,393 (2022 - £634,007).

Directors

The directors who served during the year were:

Mr R J S Burnet 
Mrs W Smith 
Mr P D M Parsons (resigned 28 July 2023)

Future developments

The company has made significant investment in new yarn winding machinery after the accounting period date. With this the company expects it will retain its market leading position in the hair containment market.

Engagement with employees

The Group recognises the benefit of keeping employees informed of the progress of the business and does so through informal meetings.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsPage Kirk LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 14 March 2025 and signed on its behalf.
 





................................................
Mr R J S Burnet
Director

Page 5


 
ABURNET LIMITED
 

 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the Group's financial statements 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 6


 
ABURNET LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ABURNET LIMITED
 

Opinion


We have audited the financial statements of Aburnet Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Profit and Loss Account, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Page 7


 
ABURNET LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ABURNET LIMITED (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 6, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 8


 
ABURNET LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ABURNET LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks within which the group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation and money laundering regulations.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of revenue.
Our audit procedures to respond to these risks included:
• Enquiries of management about their own identification and assessment of the risks of irregularities.
• Sample testing on the posting of journals.
• Reviewing regulatory correspondence and professional fees.
• Detailed substantive testing on the completeness of income.
• Reviewing budgets and post year end management accounts.


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 for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 2006Our 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 Auditors' 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.


Page 9


 
ABURNET LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ABURNET LIMITED (CONTINUED)




John S Wallis FCA (Senior Statutory Auditor)
  
for and on behalf of
Page Kirk LLP
 
Sherwood House
7 Gregory Boulevard
Nottingham
NG7 6LB

14 March 2025
Page 10


 
ABURNET LIMITED
 

 
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
5,364,984
4,472,872

Cost of sales
  
(2,314,687)
(2,149,700)

Gross profit
  
3,050,297
2,323,172

Administrative expenses
  
(2,887,476)
(1,788,570)

Other operating income
 5 
31,455
31,609

Fair value movements
  
175,000
155,000

Operating profit
 6 
369,276
721,211

Interest receivable and similar income
 10 
4,090
646

Interest payable and similar expenses
 11 
(33)
(15)

Profit before tax
  
373,333
721,842

Tax on profit
 12 
(153,940)
(87,835)

Profit for the financial year
  
219,393
634,007

Profit for the year attributable to:
  

Owners of the parent
  
219,393
634,007

  
219,393
634,007

The notes on pages 23 to 43 form part of these financial statements.

Page 11


 
ABURNET LIMITED
 


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£


Profit for the financial year

  

219,393
634,007

Other comprehensive income
  


Unrealised surplus on revaluation of tangible fixed assets
  
261,210
-

Other comprehensive income for the year
  
261,210
-

Total comprehensive income for the year
  
480,603
634,007

Profit for the year attributable to:
  


Owners of the parent Company
  
219,393
634,007

  
219,393
634,007

Total comprehensive income attributable to:
  


Owners of the parent Company
  
480,603
634,007

  
480,603
634,007

The notes on pages 23 to 43 form part of these financial statements.

Page 12


 
ABURNET LIMITED
REGISTERED NUMBER:00202702


CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2023
2022
2022
Note
£
£
£
£

Fixed assets
  

Tangible assets
 13 
2,191,186
1,683,374

Investments
 14 
-
50

Investment property
 15 
2,356,497
1,720,000

  
4,547,683
3,403,424

Current assets
  

Stocks
 16 
670,867
486,124

Debtors: amounts falling due within one year
 17 
1,482,058
1,323,471

Cash at bank and in hand
 18 
861,234
1,351,119

  
3,014,159
3,160,714

Creditors: amounts falling due within one year
 19 
(1,429,212)
(1,041,204)

Net current assets
  
 
 
1,584,947
 
 
2,119,510

Total assets less current liabilities
  
6,132,630
5,522,934

Provisions for liabilities
  

Deferred taxation
 21 
(437,532)
(291,229)

  
 
 
(437,532)
 
 
(291,229)

Net assets
  
5,695,098
5,231,705


Capital and reserves
  

Called up share capital 
 22 
12,029
12,029

Share premium account
  
38,050
38,050

Revaluation reserve
  
1,558,489
1,174,591

Capital redemption reserve
  
2,421
2,421

Profit and loss account
  
4,084,109
4,004,614

  
5,695,098
5,231,705


Page 13


 
ABURNET LIMITED
REGISTERED NUMBER:00202702

    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 14 March 2025.




................................................
Mr R J S Burnet
Director

The notes on pages 23 to 43 form part of these financial statements.

Page 14


 
ABURNET LIMITED
REGISTERED NUMBER:00202702


COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2023
2022
2022
Note
£
£
£
£

Fixed assets
  

Tangible assets
 13 
2,054,941
1,548,935

Investments
 14 
200
250

  
2,055,141
1,549,185

Current assets
  

Debtors: amounts falling due within one year
 17 
1,731,839
1,735,186

Cash at bank and in hand
 18 
223,865
426,507

  
1,955,704
2,161,693

Creditors: amounts falling due within one year
 19 
(165,934)
(132,466)

Net current assets
  
 
 
1,789,770
 
 
2,029,227

Total assets less current liabilities
  
3,844,911
3,578,412

  

Provisions for liabilities
  

Deferred taxation
 21 
(241,099)
(147,108)

  
 
 
(241,099)
 
 
(147,108)

Net assets
  
3,603,812
3,431,304


Capital and reserves
  

Called up share capital 
 22 
12,029
12,029

Share premium account
  
38,050
38,050

Revaluation reserve
  
821,394
560,184

Capital redemption reserve
  
2,421
2,421

Profit and loss account
  
2,729,918
2,818,620

  
3,603,812
3,431,304


Page 15


 
ABURNET LIMITED
REGISTERED NUMBER:00202702

    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 14 March 2025.


................................................
Mr R J S Burnet
Director

The notes on pages 23 to 43 form part of these financial statements.

Page 16

 

ABURNET LIMITED
 
 
 


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023



Called up share capital
Share premium account
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity


£
£
£
£
£
£


At 1 January 2023
12,029
38,050
2,421
1,174,591
4,004,614
5,231,705



Comprehensive income for the year


Profit for the year

-
-
-
-
219,393
219,393


Surplus on revaluation of freehold property
-
-
-
261,210
60,790
322,000



Other comprehensive income for the year
-
-
-
261,210
60,790
322,000



Total comprehensive income for the year
-
-
-
261,210
280,183
541,393



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
-
(78,000)
(78,000)


Transfer to/from profit and loss account
-
-
-
122,688
(122,688)
-



Total transactions with owners
-
-
-
122,688
(200,688)
(78,000)



At 31 December 2023
12,029
38,050
2,421
1,558,489
4,084,109
5,695,098



The notes on pages 23 to 43 form part of these financial statements.

Page 17


 

ABURNET LIMITED
 
 
 


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022



Called up share capital
Share premium account
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity


£
£
£
£
£
£


At 1 January 2022
12,029
38,050
2,421
1,058,531
3,612,667
4,723,698



Comprehensive income for the year


Profit for the year
-
-
-
-
634,007
634,007

Total comprehensive income for the year
-
-
-
-
634,007
634,007



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
-
(126,000)
(126,000)


Transfer to/from profit and loss account
-
-
-
116,060
(116,060)
-



Total transactions with owners
-
-
-
116,060
(242,060)
(126,000)



At 31 December 2022
12,029
38,050
2,421
1,174,591
4,004,614
5,231,705



The notes on pages 23 to 43 form part of these financial statements.

Page 18


 

ABURNET LIMITED
 
 
 


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023



Called up share capital
Share premium account
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity


£
£
£
£
£
£


At 1 January 2023
12,029
38,050
2,421
560,184
2,818,620
3,431,304



Comprehensive income for the year


Loss for the year

-
-
-
-
(71,492)
(71,492)


Surplus on revaluation of freehold property
-
-
-
261,210
60,790
322,000



Other comprehensive income for the year
-
-
-
261,210
60,790
322,000



Total comprehensive income for the year
-
-
-
261,210
(10,702)
250,508



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
-
(78,000)
(78,000)



Total transactions with owners
-
-
-
-
(78,000)
(78,000)



At 31 December 2023
12,029
38,050
2,421
821,394
2,729,918
3,603,812



The notes on pages 23 to 43 form part of these financial statements.

Page 19


 

ABURNET LIMITED
 
 
 


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022



Called up share capital
Share premium account
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity


£
£
£
£
£
£


At 1 January 2022
12,029
38,050
2,421
569,674
2,832,179
3,454,353



Comprehensive income for the year


Profit for the year
-
-
-
-
102,951
102,951

Total comprehensive income for the year
-
-
-
-
102,951
102,951



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
-
(126,000)
(126,000)


Transfer to/from profit and loss account
-
-
-
(9,490)
9,490
-



Total transactions with owners
-
-
-
(9,490)
(116,510)
(126,000)



At 31 December 2022
12,029
38,050
2,421
560,184
2,818,620
3,431,304



The notes on pages 23 to 43 form part of these financial statements.

Page 20

 
ABURNET LIMITED
 


CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
219,393
634,007

Adjustments for:

Depreciation of tangible assets
192,607
138,113

Loss on disposal of tangible assets
(46,972)
-

Interest paid
33
15

Interest received
(4,090)
(646)

Taxation charge
153,940
87,835

(Increase) in stocks
(184,743)
(25,990)

(Increase) in debtors
(172,489)
(147,445)

Increase in creditors
375,682
54,431

Net fair value (gains) recognised in P&L
(175,000)
(155,000)

Corporation tax (paid)
(7,575)
(67,400)

Net cash generated from operating activities

350,786
517,920


Cash flows from investing activities

Purchase of tangible fixed assets
(393,410)
(101,651)

Sale of tangible fixed assets
61,963
-

Purchase of investment properties
(461,497)
-

Sale of share in associates
50
-

Interest received
4,090
646

Net cash from investing activities

(788,804)
(101,005)

Cash flows from financing activities

Dividends paid
(78,000)
(126,000)

Interest paid
(33)
(15)

Net cash used in financing activities
(78,033)
(126,015)

Net (decrease)/increase in cash and cash equivalents
(516,051)
290,900
Page 21


 
ABURNET LIMITED
 


CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Cash and cash equivalents at beginning of year
1,351,119
1,060,219

Cash and cash equivalents at the end of year
835,068
1,351,119


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
861,234
1,351,119

Bank overdrafts
(26,166)
-

835,068
1,351,119


The notes on pages 23 to 43 form part of these financial statements.

Page 22


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Manners Avenue
Manners Industrial Estate
Ilkeston
Derbyshire
DE7 8EF

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Profit and Loss Account from the date on which control is obtained. They are deconsolidated from the date control ceases.

The consolidated financial statements consolidate the financial statements of the company and the following subsidiary undertakings drawn up to 31 December 2023:
Aburnet (Hair Containment Solutions) Limited
Aburnet Developments Limited
Aburnet Lanka (Private) Limited

 
2.3

Going concern

The national and international economic outlook has been and will continue to be negatively affected by inflationary pressures and challenging labour market conditions. After assessing the potential impacts and other operational and market risks, the directors expect the company to have adequate resources and projected revenue streams to continue in operational existence for the foreseeable future and, therefore, continue to adopt the going concern basis in preparing the company's financial statements.

Page 23


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is £GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Profit and Loss Account within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Page 24


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 25


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 26


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2%
Plant and machinery
-
14%
to 100%
Motor vehicles
-
20%
Fixtures and fittings
-
10%
to 100%
Office equipment
-
10%
to 100%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

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

 
2.13

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.14

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 27


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.16

Associates and joint ventures

An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control.

An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Profit and Loss Account includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Balance Sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition.
Any premium on acquisition is dealt with in accordance with the goodwill policy.

 
2.17

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

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

 
2.18

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.19

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.20

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 28


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.21

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.22

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Profit and Loss Account.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Enter user text here... 

 
2.23

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are set out in note 2 above, the directors are required to make judgements, estimates and assumptions. 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 were reviewed on an ongoing basis. No critical judgements have been identified by the directors that have been made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Page 29


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sale of goods
5,283,991
4,397,695

Rental income from investment property
80,993
75,177

5,364,984
4,472,872


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
2,629,485
2,295,839

Rest of Europe
747,896
770,284

America
1,918,058
1,320,957

Rest of the world
69,545
85,792

5,364,984
4,472,872



5.


Other operating income

2023
2022
£
£

Sub lease rental income
31,505
31,609

Profit/(loss) on disposal of fixed asset investments
(50)
-

31,455
31,609



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
95,195
(381,714)

Depreciation expense
192,607
138,113

(Profit)/loss on disposal of fixed assets
(46,972)
-

Research & development expenditure
51,292
21,499

Page 30


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Auditors' remuneration

2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated, parent and subsidiary Company's financial statements
13,000
9,200


8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
2023
2022
£
£


Wages and salaries
1,611,498
1,427,708

Social security costs
159,531
135,649

Cost of defined contribution scheme
104,365
38,085

1,875,394
1,601,442


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Production
321
301



Administration and support
46
21



Distribution
-
12



Other departments
7
3

374
337


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
159,133
188,541

Group contributions to defined contribution pension schemes
8,748
14,371

167,881
202,912


During the year retirement benefits were accruing to 3 directors (2022 - 3) in respect of defined contribution pension schemes.

Page 31


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Interest receivable

2023
2022
£
£


Other interest receivable
4,090
646

4,090
646


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
33
15

33
15


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
12,220
52,339

Adjustments in respect of previous periods
(29,650)
-


(17,430)
52,339

Foreign tax


Foreign tax on income for the year
25,066
14,490

25,066
14,490

Total current tax
7,636
66,829

Deferred tax


Origination and reversal of timing differences
146,304
21,006

Total deferred tax
146,304
21,006


Taxation on profit on ordinary activities
153,940
87,835
Page 32


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2022 - the same as) the standard rate of corporation tax in the UK of 19% (2022 - 19%) as set out below:

2023
2022
£
£


Profit on ordinary activities before tax
373,333
721,842


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
70,933
137,150

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
15,937
8,409

Capital allowances for year in excess of depreciation
(41,331)
15,231

Utilisation of tax losses
-
26,458

Adjustments to tax charge in respect of prior periods
(29,650)
-

Non-taxable income
(33,250)
(29,450)

Adjustment in tax incentives leading to an increase (decrease) in the tax charge
(41,238)
(74,215)

Effect of foreign tax rates
42,058
(16,754)

Deferred tax expense/(credit)
146,303
21,006

Unrelieved tax losses carried forward
22,098
-

Other differences leading to an increase (decrease) in the tax charge
2,080
-

Total tax charge for the year
153,940
87,835


Factors that may affect future tax charges

In the Spring budget 2021, the UK Government announced that from 1 April 2023, the corporation tax rate would increase to 25% (rather than remaining at 19%, as previously enacted). This new law was substantively enacted on 24 May 2021. In the Autumn Statement in November 2022, the government confirmed the increase in corporation tax to 25% from April 2023 will go ahead. 

Page 33


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Office equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 January 2023
1,300,000
1,293,242
283,218
351,663
18,603
3,246,726


Additions
-
304,409
60,991
27,961
49
393,410


Disposals
-
(36,500)
(98,863)
-
-
(135,363)


Revaluations
270,000
-
-
-
-
270,000



At 31 December 2023

1,570,000
1,561,151
245,346
379,624
18,652
3,774,773



Depreciation


At 1 January 2023
26,000
1,039,423
168,899
316,911
12,119
1,563,352


Charge for the year on owned assets
26,000
90,662
49,997
25,897
51
192,607


Disposals
-
(36,500)
(83,872)
-
-
(120,372)


On revalued assets
(52,000)
-
-
-
-
(52,000)



At 31 December 2023

-
1,093,585
135,024
342,808
12,170
1,583,587



Net book value



At 31 December 2023
1,570,000
467,566
110,322
36,816
6,482
2,191,186



At 31 December 2022
1,274,000
253,819
114,319
34,752
6,484
1,683,374

Page 34


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           13.Tangible fixed assets (continued)




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Freehold
1,570,000
1,274,000

1,570,000
1,274,000


The fair value of the group's Freehold property was revalued on 31 December 2023 by the directors. An independent valuer was not involved.
The directors have determined the value of the freehold property held using information from recent valuations of similar property in area in which the freehold property is held. The last valuation by an independent valuer was conducted on 13 June 2016.

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2023
2022
£
£

Group


Cost
714,188
714,188

Accumulated depreciation
(133,445)
(119,161)

Net book value
580,743
595,027

Page 35


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           13.Tangible fixed assets (continued)


Company






Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£

Cost or valuation


At 1 January 2023
1,300,000
1,122,539
283,218
309,913
3,015,670


Additions
-
304,409
60,991
23,841
389,241


Disposals
-
(36,500)
(98,863)
-
(135,363)


Revaluations
270,000
-
-
-
270,000



At 31 December 2023

1,570,000
1,390,448
245,346
333,754
3,539,548



Depreciation


At 1 January 2023
26,000
993,728
168,899
278,108
1,466,735


Charge for the year on owned assets
26,000
90,662
49,997
23,585
190,244


Disposals
-
(36,500)
(83,872)
-
(120,372)


On revalued assets
(52,000)
-
-
-
(52,000)



At 31 December 2023

-
1,047,890
135,024
301,693
1,484,607



Net book value



At 31 December 2023
1,570,000
342,558
110,322
32,061
2,054,941



At 31 December 2022
1,274,000
128,811
114,319
31,805
1,548,935

Page 36


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           13.Tangible fixed assets (continued)





The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Freehold
1,570,000
1,274,000

1,570,000
1,274,000


The fair value of the group's Freehold property was revalued on 31 December 2023 by the directors. An independent valuer was not involved.
The directors have determined the value of the freehold property held using information from recent valuations of similar property in area in which the freehold property is held. The last valuation by an independent valuer was conducted on 13 June 2016.




14.


Fixed asset investments

Group





Investments in associates

£





At 1 January 2023
50


Disposals
(50)



At 31 December 2023
-




Page 37


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Company





Investments in subsidiary companies
Investments in associates
Total

£
£
£



Cost or valuation


At 1 January 2023
200
50
250


Disposals
-
(50)
(50)



At 31 December 2023
200
-
200





Direct subsidiary undertakings


The following were direct subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Aburnet (Hair Containment Solutions) Limited
Manners Avenue, Manners Industrial Estate, Ilkeston, Derbyshire, England, DE7 8EF
Ordinary
100%
Aburnet Developments Limited
Manners Avenue, Manners Industrial Estate, Ilkeston, Derbyshire, England, DE7 8EF
Ordinary
100%


Indirect subsidiary undertaking


The following was an indirect subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Aburnet Lanka (Private) Limited
No.5, 9th Land, Nawala Road, Nawala
Ordinary
100%

Associate
The associate Aerborn Aburnet Limited was dissolved on 7 March 2023.

Page 38


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Investment property

Group


Freehold investment property

£



Valuation


At 1 January 2023
1,720,000


Additions at cost
461,497


Surplus on revaluation
175,000



At 31 December 2023
2,356,497

The directors have determined the value of the investment property held using information from recent sales of similar properties in the area in which the investment property is held.
There has been no valuation of investment property by an independent valuer.



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2023
2022
£
£


Historic cost
1,422,970
961,473

1,422,970
961,473


16.


Stocks

Group
Group
2023
2022
£
£

Raw materials and consumables
316,932
273,194

Work in progress (goods to be sold)
234,084
162,594

Finished goods and goods for resale
119,851
50,336

670,867
486,124


Page 39


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
1,120,489
984,686
-
-

Amounts owed by group undertakings
-
-
1,676,992
1,646,134

Other debtors
206,345
163,185
54,841
33,808

Prepayments and accrued income
155,224
175,600
6
55,244

1,482,058
1,323,471
1,731,839
1,735,186



18.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
861,234
1,351,119
223,865
426,507

Less: bank overdrafts
(26,166)
-
(5,137)
-

835,068
1,351,119
218,728
426,507



19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank overdrafts
26,166
-
5,137
-

Trade creditors
411,499
275,913
92,938
6,080

Corporation tax
37,289
51,130
-
37,798

Other taxation and social security
89,462
106,344
-
-

Other creditors
53,612
72,475
47,763
69,013

Accruals and deferred income
801,684
525,842
10,596
10,075

Share capital treated as debt
9,500
9,500
9,500
9,500

1,429,212
1,041,204
165,934
132,466


Page 40


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets measured at amortised cost
2,188,068
2,498,990
1,953,496
2,106,449


Financial liabilities

Financial liabilities measured at amortised cost
1,066,599
723,192
155,125
98,668


21.


Deferred taxation


Group



2023


£






At beginning of year
(291,229)


Charged to the profit or loss
(146,303)



At end of year
(437,532)

Page 41


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
21.Deferred taxation (continued)

Company


2023


£






At beginning of year
(147,108)


Charged to profit or loss
(93,991)



At end of year
(241,099)

The provision for deferred taxation is made up as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(73,236)
(28,319)
(73,236)
(28,319)

Revaluation surplus
(364,296)
(262,910)
(167,863)
(118,789)

(437,532)
(291,229)
(241,099)
(147,108)

Page 42


 
ABURNET LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Share capital

2023
2022
£
£
Shares classified as equity

Allotted, called up and fully paid



12,029 (2022 - 12,029) Ordinary shares of £1.00 each
12,029
12,029

2023
2022
£
£
Shares classified as debt

Allotted, called up and fully paid



9,500 (2022 - 9,500) 7% preference shares of £1.00 each
9,500
9,500



23.


Pension commitments

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £104,365 (2022 - £38,085).
Contributions totalling £225,052 (2022 - £160,538) were payable to the scheme at the end of the year and are included in creditors.

 
Page 43