Company registration number 01630651 (England and Wales)
GENERAL WELDING SUPPLIES (NORTH WEST) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
PAGES FOR FILING WITH REGISTRAR
GENERAL WELDING SUPPLIES (NORTH WEST) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
GENERAL WELDING SUPPLIES (NORTH WEST) LIMITED
BALANCE SHEET
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
956,545
875,202
Current assets
Stocks
665,138
619,246
Debtors
5
1,234,509
1,253,900
Cash at bank and in hand
397,838
481,884
2,297,485
2,355,030
Creditors: amounts falling due within one year
6
(2,434,844)
(2,609,945)
Net current liabilities
(137,359)
(254,915)
Total assets less current liabilities
819,186
620,287
Creditors: amounts falling due after more than one year
7
(110,221)
(145,833)
Provisions for liabilities
(201,655)
(147,230)
Net assets
507,310
327,224
Capital and reserves
Called up share capital
8
40,000
40,000
Capital redemption reserve
9
10,000
10,000
Profit and loss reserves
457,310
277,224
Total equity
507,310
327,224
GENERAL WELDING SUPPLIES (NORTH WEST) LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
For the financial year ended 30 June 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved and signed by the director and authorised for issue on 27 March 2025
S Allen
Director
Company registration number 01630651 (England and Wales)
GENERAL WELDING SUPPLIES (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
1
Accounting policies
Company information
General Welding Supplies (North West) Limited is a private company limited by shares incorporated in England and Wales. The registered office is GWS House, Hale Road, Widnes, Cheshire, WA8 8PX.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents amounts receivable from the sale and hire of welding equipment net of VAT and trade discounts.
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
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.
GENERAL WELDING SUPPLIES (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 4 -
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:
Leasehold improvements
Over 20 years
Plant and machinery
10% p.a. straight line
Fixtures, fittings & equipment
10% p.a. straight line
Motor vehicles
20% p.a. 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 and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of 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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
GENERAL WELDING SUPPLIES (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 5 -
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
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.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
GENERAL WELDING SUPPLIES (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 6 -
Deferred tax
Deferred taxation is recognised in respect of all timing differences which have originated but not reversed at the balance sheet date. Timing differences are differences between taxable profits and the results as stated in the financial statements which arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised for tax purposes.
Deferred tax is measured at the average tax rates which are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws which have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.
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
The pension costs charged in the financial statements represent the contributions payable by the company during the year.
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.
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.
GENERAL WELDING SUPPLIES (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
23
20
3
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
40,000
Amortisation and impairment
At 1 July 2023 and 30 June 2024
40,000
Carrying amount
At 30 June 2024
At 30 June 2023
4
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
127,723
1,617,934
254,046
128,381
2,128,084
Additions
199,361
149
65,400
264,910
Disposals
(379,591)
(379,591)
At 30 June 2024
127,723
1,437,704
254,195
193,781
2,013,403
Depreciation and impairment
At 1 July 2023
99,373
884,895
181,415
87,199
1,252,882
Depreciation charged in the year
5,776
127,718
14,637
19,596
167,727
Eliminated in respect of disposals
(363,751)
(363,751)
At 30 June 2024
105,149
648,862
196,052
106,795
1,056,858
Carrying amount
At 30 June 2024
22,574
788,842
58,143
86,986
956,545
At 30 June 2023
28,350
733,039
72,631
41,182
875,202
GENERAL WELDING SUPPLIES (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,136,992
1,174,808
Other debtors
97,517
79,092
1,234,509
1,253,900
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
70,484
72,443
Trade creditors
1,014,697
1,226,408
Taxation and social security
217,003
123,677
Other creditors
1,132,660
1,187,417
2,434,844
2,609,945
The bank loans and overdrafts are secured.
Other creditors includes hire purchase and finance lease contracts totaling £10,204 (2023: £10,113) which are secured over the assets to which they relate.
Other creditors includes invoice discounting loans totalling £901,550 (2023: £973,470) which are secured.
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
75,833
145,833
Other creditors
34,388
110,221
145,833
Other creditors includes hire purchase and finance lease contracts totaling £34,388 (2023: £Nil) which are secured over the assets to which they relate.
8
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
40,000
40,000
40,000
40,000
9
Capital redemption reserve
The capital redemption reserve arose from the purchase, by the Company, of its own shares.
GENERAL WELDING SUPPLIES (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
192,882
239,433
2024-06-302023-07-01falsefalsefalse27 March 2025CCH SoftwareCCH Accounts Production 2024.310No description of principal activityS Allen016306512023-07-012024-06-30016306512024-06-30016306512023-06-3001630651core:LeaseholdImprovements2024-06-3001630651core:PlantMachinery2024-06-3001630651core:FurnitureFittings2024-06-3001630651core:MotorVehicles2024-06-3001630651core:LeaseholdImprovements2023-06-3001630651core:PlantMachinery2023-06-3001630651core:FurnitureFittings2023-06-3001630651core:MotorVehicles2023-06-3001630651core:CurrentFinancialInstrumentscore:WithinOneYear2024-06-3001630651core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-3001630651core:Non-currentFinancialInstrumentscore:AfterOneYear2024-06-3001630651core:Non-currentFinancialInstrumentscore:AfterOneYear2023-06-3001630651core:CurrentFinancialInstruments2024-06-3001630651core:CurrentFinancialInstruments2023-06-3001630651core:Non-currentFinancialInstruments2024-06-3001630651core:Non-currentFinancialInstruments2023-06-3001630651core:ShareCapital2024-06-3001630651core:ShareCapital2023-06-3001630651core:CapitalRedemptionReserve2024-06-3001630651core:CapitalRedemptionReserve2023-06-3001630651core:RetainedEarningsAccumulatedLosses2024-06-3001630651core:RetainedEarningsAccumulatedLosses2023-06-3001630651bus:Director12023-07-012024-06-3001630651core:Goodwill2023-07-012024-06-3001630651core:LeaseholdImprovements2023-07-012024-06-3001630651core:PlantMachinery2023-07-012024-06-3001630651core:FurnitureFittings2023-07-012024-06-3001630651core:MotorVehicles2023-07-012024-06-30016306512022-07-012023-06-3001630651core:NetGoodwill2023-06-3001630651core:NetGoodwill2024-06-3001630651core:NetGoodwill2023-06-3001630651core:LeaseholdImprovements2023-06-3001630651core:PlantMachinery2023-06-3001630651core:FurnitureFittings2023-06-3001630651core:MotorVehicles2023-06-30016306512023-06-3001630651core:WithinOneYear2024-06-3001630651core:WithinOneYear2023-06-3001630651bus:PrivateLimitedCompanyLtd2023-07-012024-06-3001630651bus:SmallCompaniesRegimeForAccounts2023-07-012024-06-3001630651bus:FRS1022023-07-012024-06-3001630651bus:AuditExemptWithAccountantsReport2023-07-012024-06-3001630651bus:FullAccounts2023-07-012024-06-30xbrli:purexbrli:sharesiso4217:GBP