REGISTERED NUMBER: 12157190 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2024 |
FOR |
WYLYE VALLEY HOLDINGS LIMITED |
REGISTERED NUMBER: 12157190 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2024 |
FOR |
WYLYE VALLEY HOLDINGS LIMITED |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
WYLYE VALLEY HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 AUGUST 2024 |
DIRECTOR: |
REGISTERED OFFICE: |
Factory |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditors |
Windover House |
St. Ann Street |
Salisbury |
SP1 2DR |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 AUGUST 2024 |
The director presents his strategic report of the company and the group for the year ended 31 August 2024. |
REVIEW OF BUSINESS |
Turnover for the year ended 31 August 2024 decreased by £454k (5%) to £8,070k. Gross margin, has decreased slightly to 39.7% (2023: 41.6%). |
The group made a profit before tax on continuing operations of £302k in the year compared to a profit of £515k in the previous year. The group ended the year with net current assets totalling £560k (2023: £704k). Cash in hand decreased to £352k (2023: £634k). |
No dividends were paid by the group during the year (2023: £nil). |
PRINCIPAL RISKS AND UNCERTAINTIES |
Inflation & Supply Chain: |
The recent world events have caused significant upward pressure on prices and damage to supply chains. The group continues to work hard with suppliers to mitigate these effects and to seek ever greater efficiency in sourcing. |
Reputation: Quality of products and services; information security. |
The quality of product is of paramount importance to the group. Great care is taken to work with the right suppliers to maintain and enhance standards. The group places great emphasis on security awareness, particularly at mid and high management levels. |
Credit and cash flow: Any concentration of credit with individual customers and relaxation of good credit management. |
The g roup ensures that appropriate due diligence is carried out on new customers and maintains a strong emphasis on the management of good credit control overall. |
Interest rates: Exposure to cash flow interest rate risk. |
The group has traditionally ensured that it has a very low level of borrowing relative to its assets and thus has no significant exposure to interest rate risk. |
Liquidity: Exposure to inadequate cash flows. |
The combined availability of bank balances and continued strong positive cash flows prevents any significant exposure to liquidity risk. |
Investment & Staffing: |
The resultant changes in society caused by the recent pandemic and advances in weaving technology mean that investment in the machine base to drive greater efficiency have become even more critical. Therefore the group have reviewed and implemented a revised machine investment strategy which commenced in 2021 and has already resulted in major improvements in output levels and staff retention. |
ON BEHALF OF THE BOARD: |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 AUGUST 2024 |
The director presents his report with the financial statements of the company and the group for the year ended 31 August 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the manufacture and wholesale of carpets. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 August 2024. |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Fawcetts LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
WYLYE VALLEY HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Wylye Valley Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 affairs as at 31 August 2024 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
WYLYE VALLEY HOLDINGS LIMITED |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director 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 Report of the Director. |
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 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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the director is responsible for assessing the 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
WYLYE VALLEY HOLDINGS LIMITED |
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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations we consider the following: |
- | the nature of the industry/sector, control environment and financial performance; |
- |
results of our enquiries of management about their own identification and assessment of the risk of irregularities; |
- | any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to: |
- | identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- | detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and |
- | the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;. |
- | the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following area: revenue and profit recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We have also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation. |
Audit response to risk identified |
As a result of performing the above, we identified revenue and profit recognition and management override of controls as key matters related to the potential risk of fraud or material misstatement. Our procedures to respond to risks identified included the following: |
- | reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- | enquiring of management concerning actual and potential litigation and claims; |
- | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | understanding the entity's revenue recognition policies and how they are applied, including the relevant controls and processes and performing a walk-through to validate our understanding; |
- | reading minutes of meetings of those charged with governance and reviewing any correspondence with HMRC; and |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
WYLYE VALLEY HOLDINGS LIMITED |
- | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
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 Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditors |
Windover House |
St. Ann Street |
Salisbury |
SP1 2DR |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 AUGUST 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 8,069,621 | 8,524,234 |
Cost of sales | 4,890,354 | 4,974,029 |
GROSS PROFIT | 3,179,267 | 3,550,205 |
Administrative expenses | 2,799,567 | 2,985,532 |
OPERATING PROFIT | 4 | 379,700 | 564,673 |
Interest payable and similar expenses | 5 | 77,772 | 49,405 |
PROFIT BEFORE TAXATION | 301,928 | 515,268 |
Tax on profit | 6 | 136,669 | 78,290 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 165,259 | 436,978 |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 AUGUST 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 165,259 | 436,978 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
165,259 |
436,978 |
Total comprehensive income attributable to: |
Owners of the parent | 165,259 | 436,978 |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
CONSOLIDATED BALANCE SHEET |
31 AUGUST 2024 |
2024 | 2023 |
Notes | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 | 3,631,877 | 3,503,856 |
Investments | 9 | - | - |
3,631,877 | 3,503,856 |
CURRENT ASSETS |
Stocks | 10 | 1,446,848 | 1,658,365 |
Debtors | 11 | 1,067,666 | 991,085 |
Cash at bank and in hand | 352,398 | 633,948 |
2,866,912 | 3,283,398 |
CREDITORS |
Amounts falling due within one year | 12 | 2,307,022 | 2,579,123 |
NET CURRENT ASSETS | 559,890 | 704,275 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 4,191,767 | 4,208,131 |
CREDITORS |
Amounts falling due after more than one year |
13 |
(751,490 |
) |
(1,091,557 |
) |
PROVISIONS FOR LIABILITIES | 17 | (339,941 | ) | (181,497 | ) |
NET ASSETS | 3,100,336 | 2,935,077 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 1,866,668 | 1,866,668 |
Capital redemption reserve | 19 | 1,733,336 | 1,733,336 |
Merger reserve | 19 | (5,561,001 | ) | (5,561,001 | ) |
Retained earnings | 19 | 5,061,333 | 4,896,074 |
SHAREHOLDERS' FUNDS | 3,100,336 | 2,935,077 |
The financial statements were approved by the director and authorised for issue on 7 April 2025 and were signed by: |
C S Brammall - Director |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
COMPANY BALANCE SHEET |
31 AUGUST 2024 |
2024 | 2023 |
Notes | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
Investments | 9 |
CURRENT ASSETS |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Capital redemption reserve | 19 |
Retained earnings | 19 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (8,892 | ) | (6,024 | ) |
The financial statements were approved by the director and authorised for issue on |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 AUGUST 2024 |
Called up | Capital |
share | Retained | redemption | Merger | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 September 2022 | 1,866,668 | 2,459,096 | 3,733,336 | (5,561,001 | ) | 2,498,099 |
Changes in equity |
Total comprehensive income | - | 2,436,978 | (2,000,000 | ) | - | 436,978 |
Balance at 31 August 2023 | 1,866,668 | 4,896,074 | 1,733,336 | (5,561,001 | ) | 2,935,077 |
Changes in equity |
Total comprehensive income | - | 165,259 | - | - | 165,259 |
Balance at 31 August 2024 | 1,866,668 | 5,061,333 | 1,733,336 | (5,561,001 | ) | 3,100,336 |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 AUGUST 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 September 2022 | ( |
) |
Changes in equity |
Issue of share capital | - | - |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 August 2023 | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 August 2024 | ( |
) |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 AUGUST 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 252,902 | 1,126,324 |
Interest paid | (26,890 | ) | (18,242 | ) |
Interest element of hire purchase payments paid |
(50,882 |
) |
(31,163 |
) |
Tax paid | - | (23,668 | ) |
Net cash from operating activities | 175,130 | 1,053,251 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (108,990 | ) | (1,355,625 | ) |
Net cash from investing activities | (108,990 | ) | (1,355,625 | ) |
Cash flows from financing activities |
Loan repayments in year | (99,004 | ) | (95,393 | ) |
New hire purchase agreements in year | - | 957,852 |
Capital repayments in year | (148,686 | ) | (244,740 | ) |
Amount withdrawn by directors | (100,000 | ) | - |
Net cash from financing activities | (347,690 | ) | 617,719 |
(Decrease)/increase in cash and cash equivalents | (281,550 | ) | 315,345 |
Cash and cash equivalents at beginning of year |
2 |
633,948 |
318,603 |
Cash and cash equivalents at end of year | 2 | 352,398 | 633,948 |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 AUGUST 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 301,928 | 515,268 |
Depreciation charges | (19,031 | ) | 345,579 |
Finance costs | 77,772 | 49,405 |
360,669 | 910,252 |
Decrease/(increase) in stocks | 211,517 | (261,269 | ) |
(Increase)/decrease in trade and other debtors | (76,581 | ) | 175,532 |
(Decrease)/increase in trade and other creditors | (242,703 | ) | 301,809 |
Cash generated from operations | 252,902 | 1,126,324 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 August 2024 |
31.8.24 | 1.9.23 |
£ | £ |
Cash and cash equivalents | 352,398 | 633,948 |
Year ended 31 August 2023 |
31.8.23 | 1.9.22 |
£ | £ |
Cash and cash equivalents | 633,948 | 318,603 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.9.23 | Cash flow | At 31.8.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 633,948 | (281,550 | ) | 352,398 |
633,948 | (281,550 | ) | 352,398 |
Debt |
Finance leases | (945,389 | ) | 148,686 | (796,703 | ) |
Debts falling due within 1 year | (103,656 | ) | (96,853 | ) | (200,509 | ) |
Debts falling due after 1 year | (294,854 | ) | 195,857 | (98,997 | ) |
(1,343,899 | ) | 247,690 | (1,096,209 | ) |
Total | (709,951 | ) | (33,860 | ) | (743,811 | ) |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2024 |
1. | STATUTORY INFORMATION |
Wylye Valley Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are prepared in sterling, which is the functional currency of the company. |
Going concern |
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. In making his assessment, the director has reviewed the balance sheet and likely future cash flows of the business. He has also considered the facilities and cash that are in place at this point in time and at least one year from the date that the financial statements will be signed. Thus the director believes it is appropriate to continue to adopt the going concern basis of accounting in preparing these financial statements. |
Basis of consolidation |
The consolidated financial statements incorporate those of Wylye Valley Holdings Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). |
All financial statements are made up to 31 August 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the g roup. |
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
In the application of the group's accounting policies, the director is 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. |
Critical judgements |
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. |
Determine whether leases entered into are operating or finance leases |
These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis. |
Determine whether there are any indicators of impairment of assets |
Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset. |
Determine whether borrowings are classed as current or non-current borrowings |
These decisions depend on the cash flow requirements of the company and whether the borrowings in the company can be repaid. |
Key sources of estimation uncertainty |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
Tangible fixed assets |
Tangible fixed assets, other than land and buildings, are depreciated over their useful lives, taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into consideration. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. |
Land is not depreciated in accordance with FRS 102. Buildings, excluding separately identified components, are not depreciated, however are reviewed annually for impairment. It is the company's practice to maintain these assets in a continual state of sound repair and make improvements thereto from time to time. The life of the asset is considered to be so long and residual value so high that depreciation is insignificant and any permanent diminution in value would be recognised in profit or loss for the year. This is supported by periodic valuations performed by chartered surveyors not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and is based on recent market transactions on arm's length terms for similar properties. |
Stock |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
2. | ACCOUNTING POLICIES - continued |
Overheads are reviewed over a four month period and absorbed into the cost of stock based on metres woven. Stock is reviewed annually for impairment and a stock provision is provided for accordingly on a line by line basis. Condition of stock is reviewed to determine if it is no longer suitable for its intended use. |
Work in progress |
Determine the stage of completion of work in progress and assess the progress of each contract. |
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. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less cost to complete and sell. Cost is determined using the first-in, first-out (FIFO) method. |
The cost of the finished goods and work in progress comprises direct materials and where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit and loss. |
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. |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset and 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. |
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. |
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 group 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. |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
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 leased asset are consumed. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 3,155,120 | 3,149,008 |
Social security costs | 316,942 | 321,614 |
Other pension costs | 63,838 | 64,989 |
3,535,900 | 3,535,611 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Production | 54 | 64 |
Administration and support | 32 | 28 |
Directors | 1 | 1 |
2024 | 2023 |
£ | £ |
Director's remuneration | - | - |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Other operating leases | 76,549 | 58,533 |
Depreciation - owned assets | (19,031 | ) | 345,577 |
Foreign exchange differences | 19,311 | 8,107 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest | 26,890 | 18,242 |
Hire purchase | 50,882 | 31,163 |
77,772 | 49,405 |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | - | 21,775 |
Prior year overprovision | (21,775 | ) | (12,200 | ) |
Total current tax | (21,775 | ) | 9,575 |
Deferred tax | 158,444 | 68,715 |
Tax on profit | 136,669 | 78,290 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 301,928 | 515,268 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 21.500 %) |
75,482 |
110,783 |
Effects of: |
Expenses not deductible for tax purposes | 912 | 1,159 |
Capital allowances in excess of depreciation | (43,124 | ) | (126,849 | ) |
Utilisation of tax losses | (33,203 | ) | 36,155 |
Adjustments to tax charge in respect of previous periods | (21,775 | ) | (12,200 | ) |
Movement in deferred tax provision | 158,444 | 68,715 |
Provisions adjustment | (307 | ) | 208 |
Leased cars adjustment | 240 | 319 |
Total tax charge | 136,669 | 78,290 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
8. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 September 2023 | 1,500,000 | 3,446,197 | 296,103 | 144,178 | 5,386,478 |
Additions | - | 26,794 | 82,196 | - | 108,990 |
At 31 August 2024 | 1,500,000 | 3,472,991 | 378,299 | 144,178 | 5,495,468 |
DEPRECIATION |
At 1 September 2023 | - | 1,623,714 | 163,905 | 95,003 | 1,882,622 |
Charge for year | - | (84,484 | ) | 48,167 | 17,286 | (19,031 | ) |
At 31 August 2024 | - | 1,539,230 | 212,072 | 112,289 | 1,863,591 |
NET BOOK VALUE |
At 31 August 2024 | 1,500,000 | 1,933,761 | 166,227 | 31,889 | 3,631,877 |
At 31 August 2023 | 1,500,000 | 1,822,483 | 132,198 | 49,175 | 3,503,856 |
During the year ended 31 August 2024, the directors became aware of the considerable residual value of the company's looms. As a result of this new information the accounting estimate for depreciating these assets was reassessed and the depreciation policy amended leading to a significant adjustment in the net book value of the assets. |
9. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 September 2023 |
and 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
At 31 August 2023 |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
9. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: King Street, Wilton, Salisbury, SP2 0AY |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: King Street, Wilton, Salisbury, SP2 0AY |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
10. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Stocks | 1,446,848 | 1,658,365 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Trade debtors | 657,733 | 632,579 |
Other debtors | 237,841 | 179,796 |
Prepayments | 172,092 | 178,710 |
1,067,666 | 991,085 |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 14) | 200,509 | 103,656 |
Hire purchase contracts (see note 15) | 144,210 | 148,686 |
Payments on account | 342,913 | 398,509 |
Trade creditors | 841,002 | 880,157 |
Amounts owed to group undertakings | - | - |
Corporation tax | - | 21,775 |
Social security and other taxes | 225,791 | 333,511 |
Other creditors | 400,000 | 500,050 |
Accrued expenses | 152,597 | 192,779 |
2,307,022 | 2,579,123 |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Bank loans (see note 14) | 98,997 | 294,854 |
Hire purchase contracts (see note 15) | 652,493 | 796,703 |
751,490 | 1,091,557 |
14. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 200,509 | 103,656 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 98,997 | 294,854 |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 144,210 | 148,686 |
Between one and five years | 652,493 | 796,703 |
796,703 | 945,389 |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank loans | 299,506 | 398,510 |
Hire purchase contracts | 796,703 | 945,389 |
1,096,209 | 1,343,899 |
At the year end the bank loans and overdrafts are secured by a legal charge over the freehold property known as Wilton Carpet Factory, Minster Street & King Street, Wilton, Salisbury, SP2 0AY. |
Finance leases are secured on the asset to which the liability relates. |
17. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 339,941 | 181,497 |
Group |
Deferred |
tax |
£ |
Balance at 1 September 2023 | 181,497 |
Provided during year | 158,444 |
Balance at 31 August 2024 | 339,941 |
WYLYE VALLEY HOLDINGS LIMITED (REGISTERED NUMBER: 12157190) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 1,866,668 | 1,866,668 |
19. | RESERVES |
Group |
Capital |
Retained | redemption | Merger |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 September 2023 | 4,896,074 | 1,733,336 | (5,561,001 | ) | 1,068,409 |
Profit for the year | 165,259 | - | - | 165,259 |
At 31 August 2024 | 5,061,333 | 1,733,336 | (5,561,001 | ) | 1,233,668 |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 September 2023 | ( |
) | 1,731,784 |
Deficit for the year | ( |
) | - | ( |
) |
At 31 August 2024 | ( |
) | 1,722,892 |