Company registration number 00361629 (England and Wales)
WAKEFIELD SHIRT COMPANY LIMITED(THE)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
WAKEFIELD SHIRT COMPANY LIMITED(THE)
COMPANY INFORMATION
Directors
R J Donner
R J Donner Junior
Secretary
R J Donner Junior
Company number
00361629
Registered office
Gate A Double Two Portobello Mill
Thornes Lane Wharf
Wakefield
West Yorkshire
England
WF1 5RL
Auditor
Parsons Accountants Ltd
Unit 2 Silkwood Park
Fryers Way
Ossett
WF5 9TJ
WAKEFIELD SHIRT COMPANY LIMITED(THE)
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10 - 11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 35
WAKEFIELD SHIRT COMPANY LIMITED(THE)
STRATEGIC REPORT
FOR THE YEAR ENDED 30 DECEMBER 2023
- 1 -
The Directors present their strategic report for the company and the group for the period to the 30th of December, 2023. The business continues to be a wholesaler of Double Two branded garments and own label garments as well as selling to the public through our own shops and the internet. The business also continues to trade in the uniforms & workwear sector through its workwear brand William Sugden's.
Review of the business
2023 was a tough year for the company with “the cost-of-living crisis”, higher interest rates increasing the cost of our borrowing and slow growth in the economy and government spending cutbacks. Issues with the implementation of the new ERP and accounts system reduced turnover in Q3 while the new system was installed and made to work. At the same time our external costs rose which resulted in losses for the year (although EBITDA continued to be positive).
The company continues to sell the Double Two brand to wholesalers, direct through its own shops and concessions and direct on the internet which is a growing part of the business. The cost of establishing the brand on the internet has been substantial and the directors have now reduced this expenditure for 2024. The Career and Workwear division continues to supply to the government and to private businesses with good levels of repeat business and contract retentions. Double Two also manufactures own brand garments which has continued to be successful in the year.
2024 is expected to be a better year as the directors reduce costs and improve efficiency. Reducing rates of inflation and interest rates will also help. However, the economy continues to show almost no growth which will make progress more difficult to achieve.
R J Donner Junior
Director
6 May 2025
WAKEFIELD SHIRT COMPANY LIMITED(THE)
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 30 December 2023.
Principal activities
The principal activity of the company and group continued to be that of a wholesaler of Double Two branded garments and own label garments. The business also continues to trade in the uniforms and workwear sector through its workwear brand William Sugden's.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
No preference dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
R J Donner
R J Donner Junior
Post reporting date events
There were no significant events affecting the Company since the year end.
Future developments
The directors are not expecting to make any significant changes in the nature of the business in the near future.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, 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 and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
WAKEFIELD SHIRT COMPANY LIMITED(THE)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 3 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Despite a loss during the year, the group continues to have a strong net asset position at the year end. The directors therefore believe that the group is well placed to manage its business risks successfully and accordingly continue to adopt the going concern basis of accounting in preparing the financial statements.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
R J Donner Junior
Director
6 May 2025
WAKEFIELD SHIRT COMPANY LIMITED(THE)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WAKEFIELD SHIRT COMPANY LIMITED(THE)
- 4 -
We were engaged to audit the financial statements of Wakefield Shirt Company Limited (The) (the ‘parent Company’) and its subsidiaries (together ‘the Group’) for the year ended 31 December 2023 which comprise the Group Statement of Comprehensive Income, the Group and Company Balance Sheets, the Group and Company Statement of Changes in Equity, the Group Statement of Cash Flows and the related notes, 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).
We do not express an opinion on the accompanying financial statements of the Group or the parent Company. Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.
Basis for disclaimer of opinion
In July 2024 the Group and parent Company changed its financial reporting software and the chart of accounts which underpinned financial reporting. The audit work performed on this found material and pervasive differences between the closing balances on the old system and the opening balances on the new system which could not be reconciled by alternative means. As a result of this we cannot conclude on the classification and completeness of all items in the Group Statement of Comprehensive Income, including, most pertinently from a risk perspective, revenue.
Following the system transition management posted numerous journals in an attempt to remedy both the imbalances in the system transition and historic issues arising from automated journals being mapped to incorrect account balances. The journals posted lack sufficient appropriate audit trail for two reasons. Firstly, there were senior personnel changes in the finance function and some rectification journals were posted by now former employees. Secondly, the Group and parent Company no longer have access to the detailed accounting records in the previous financial reporting system to reconcile differences. Thus, we cannot conclude on the appropriateness of the journals posted in the financial year.
Opinions on other matters prescribed by the Companies Act 2006
Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have been unable to form an opinion, whether based on the work undertaken in the course of the audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
WAKEFIELD SHIRT COMPANY LIMITED(THE)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WAKEFIELD SHIRT COMPANY LIMITED(THE)
- 5 -
Matters on which we are required to report by exception
Notwithstanding our disclaimer of an opinion on the financial statements, in the light of the knowledge and understanding of the Group and parent Company and its environment obtained in the course of the audit performed subject to the pervasive limitation described above, we have not identified material misstatements in the strategic report or the directors’ report.
Arising from the limitation of our work referred to above:
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:
returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group and 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 and parent Company to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our responsibility is to conduct an audit of the Group and parent Company's financial statements in accordance with ISAs (UK) and to issue an auditor's report.
However, because of the matters described in the basis for disclaimer of opinion section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.
We are independent of the Group and parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
WAKEFIELD SHIRT COMPANY LIMITED(THE)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WAKEFIELD SHIRT COMPANY LIMITED(THE)
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities to detect material misstatements in respect of irregularities, including fraud.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including
fraud and non-compliance with laws and regulations, was as follows:
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry.
We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment and health and safety legislation;
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
Performed analytical procedures to identify any unusual or unexpected relationships;
Tested journal entries to identify unusual transactions;
Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
Investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
Agreeing financial statement disclosures to underlying supporting documentation;
Reading the minutes of meetings of those charged with governance;
Enquiring of management as to actual and potential litigation and claims; and
Reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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 your Report of the Auditor's.
WAKEFIELD SHIRT COMPANY LIMITED(THE)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WAKEFIELD SHIRT COMPANY LIMITED(THE)
- 7 -
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Ian Parsons (Senior Statutory Auditor)
For and on behalf of Parsons Accountants Ltd
6 May 2025
Chartered Accountants
Statutory Auditor
Unit 2 Silkwood Park
Fryers Way
Ossett
WF5 9TJ
WAKEFIELD SHIRT COMPANY LIMITED(THE)
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
13,122,135
14,178,629
Cost of sales
(8,163,883)
(8,277,084)
Gross profit
4,958,252
5,901,545
Distribution costs
(849,365)
(687,473)
Administrative expenses
(3,988,535)
(4,497,070)
Other operating expenses
-
(169,905)
Exceptional item
4
(179,629)
Operating profit
5
120,352
367,468
Interest receivable and similar income
9
1,000
Interest payable and similar expenses
10
(559,182)
(163,844)
Fair value gains and losses on investment properties
12
60,000
(Loss)/profit before taxation
(437,830)
263,624
Tax on (loss)/profit
200,937
(Loss)/profit for the financial year
24
(236,893)
263,624
Other comprehensive income
Actuarial loss on defined benefit pension schemes
(52,000)
Total comprehensive income for the year
(288,893)
263,624
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
WAKEFIELD SHIRT COMPANY LIMITED(THE)
GROUP BALANCE SHEET
AS AT 30 DECEMBER 2023
30 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,333,725
3,184,269
Investment property
12
4,820,000
4,820,000
Investments
13
149,757
222,449
8,303,482
8,226,718
Current assets
Stocks
16
2,400,735
2,131,215
Debtors
17
2,150,584
2,083,988
Cash at bank and in hand
177,744
7,847
4,729,063
4,223,050
Creditors: amounts falling due within one year
18
(4,534,057)
(7,723,767)
Net current assets/(liabilities)
195,006
(3,500,717)
Total assets less current liabilities
8,498,488
4,726,001
Creditors: amounts falling due after more than one year
19
(4,650,000)
(588,620)
Provisions for liabilities
Deferred tax liability
21
214,253
214,253
(214,253)
(214,253)
Net assets
3,634,235
3,923,128
Capital and reserves
Called up share capital
23
1,974,504
1,974,504
Revaluation reserve
24
4,106,530
4,106,530
Capital redemption reserve
24
5,646
5,646
Other reserves
24
388,631
388,631
Profit and loss reserves
24
(2,841,076)
(2,552,183)
Total equity
3,634,235
3,923,128
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 6 May 2025 and are signed on its behalf by:
06 May 2025
R J Donner Junior
Director
Company registration number 00361629 (England and Wales)
WAKEFIELD SHIRT COMPANY LIMITED(THE)
COMPANY BALANCE SHEET
AS AT 30 DECEMBER 2023
30 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,801,048
2,841,525
Investment property
12
4,820,000
4,820,000
Investments
13
581,813
3,335,612
8,202,861
10,997,137
Current assets
Debtors
17
2,472,907
703,666
Cash at bank and in hand
2,907
2,475,814
703,666
Creditors: amounts falling due within one year
18
(1,601,977)
(2,965,080)
Net current assets/(liabilities)
873,837
(2,261,414)
Total assets less current liabilities
9,076,698
8,735,723
Creditors: amounts falling due after more than one year
19
(4,650,000)
(586,976)
Provisions for liabilities
Deferred tax liability
21
214,253
214,253
(214,253)
(214,253)
Net assets
4,212,445
7,934,494
Capital and reserves
Called up share capital
23
1,974,504
1,974,504
Revaluation reserve
24
672,997
672,997
Capital redemption reserve
24
5,646
5,646
Profit and loss reserves
24
1,559,298
5,281,347
Total equity
4,212,445
7,934,494
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £3,670,049 (2022 - £126,270 loss).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
WAKEFIELD SHIRT COMPANY LIMITED(THE)
COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 DECEMBER 2023
30 December 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 6 May 2025 and are signed on its behalf by:
06 May 2025
R J Donner Junior
Director
Company registration number 00361629 (England and Wales)
WAKEFIELD SHIRT COMPANY LIMITED(THE)
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 DECEMBER 2023
- 12 -
Share capital
Revaluation reserve
Capital redemption reserve
Other reserve
Profit and loss reserves
Total
£
£
£
£
£
£
Balance at 31 January 2021
1,974,504
4,106,530
5,646
388,631
(2,815,807)
3,659,504
Year ended 30 December 2022:
Profit and total comprehensive income
-
-
-
-
263,624
263,624
Balance at 30 December 2022
1,974,504
4,106,530
5,646
388,631
(2,552,183)
3,923,128
Year ended 30 December 2023:
Loss for the year
-
-
-
-
(236,893)
(236,893)
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
-
(52,000)
(52,000)
Total comprehensive income
-
-
-
-
(288,893)
(288,893)
Balance at 30 December 2023
1,974,504
4,106,530
5,646
388,631
(2,841,076)
3,634,235
WAKEFIELD SHIRT COMPANY LIMITED(THE)
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 DECEMBER 2023
- 13 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 31 January 2021
1,974,504
672,997
5,646
5,407,617
8,060,764
Year ended 30 December 2022:
Loss and total comprehensive income for the year
-
-
-
(126,270)
(126,270)
Balance at 30 December 2022
1,974,504
672,997
5,646
5,281,347
7,934,494
Year ended 30 December 2023:
Profit for the year
-
-
-
(3,670,049)
(3,670,049)
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
(52,000)
(52,000)
Total comprehensive income
-
-
-
(3,722,049)
(3,722,049)
Balance at 30 December 2023
1,974,504
672,997
5,646
1,559,298
4,212,445
WAKEFIELD SHIRT COMPANY LIMITED(THE)
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
664,689
200,389
Interest paid
(559,182)
-
Net cash inflow from operating activities
105,507
200,389
Investing activities
Purchase of tangible fixed assets
(347,352)
(249,432)
Proceeds from disposal of tangible fixed assets
-
(10,645)
Proceeds from disposal of subsidiaries, net of cash disposed
72,692
-
Interest received
1,000
-
Net cash used in investing activities
(273,660)
(260,077)
Financing activities
Repayment of bank loans
(2,338,544)
-
New secured bank loans
4,650,000
-
Interest paid
(174,927)
Net cash generated from/(used in) financing activities
2,311,456
(174,927)
Net increase/(decrease) in cash and cash equivalents
2,143,303
(234,615)
Cash and cash equivalents at beginning of year
(1,965,570)
(1,730,955)
Cash and cash equivalents at end of year
177,733
(1,965,570)
Relating to:
Cash at bank and in hand
177,744
7,847
Bank overdrafts included in creditors payable within one year
(11)
(1,973,417)
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
- 15 -
1
Accounting policies
Company information
Wakefield Shirt Company Limited (The) (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Gate A Double Two Portobello Mill, Thornes Lane Wharf, Wakefield, West Yorkshire, England, WF15RL.
The group consists of Wakefield Shirt Company Limited (The) and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Wakefield Shirt Company Limited (The) together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 December 2023. 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 group.
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.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
The directors were able to agree a funding package with new lenders, which incorporated a working capital facility and new term loan, which repaid in full the group's previous borrowing. This meant that the group is no longer in breach of its financial covenants, ensuring the company continues to retain its financial stability. Furthermore, the directors continue to commit that any loans made by themselves to the group, should not be repaid until the group is in a position to do so.
The directors have also prepared detailed cash flow forecasts covering a period of 12 months from the date of signing these accounts; applying sensitivity analysis as appropriate. The forecasts incorporate prudent assumptions regarding future revenues and costs to demonstrate that the directors expect that the group will be able to operate profitably and within its funding facilities throughout the next 12 months and beyond, while also continuing to meet its other liabilities as they fall due.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Despite a loss during the year, the group continues to have a strong net asset position at the year end. The directors therefore believe that the group is well placed to manage its business risks successfully and accordingly continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
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.
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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:
Freehold land and buildings
1% Straight line
Plant and equipment
10%, 20% and 25% Straight line
Fixtures and fittings
10% and 20% Straight line
Computers
10% Straight line
Motor vehicles
25% 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 recognised in the profit and loss account.
1.7
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
1.10
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.
1.11
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.
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.12
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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.
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs.
1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.15
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.18
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The judgement and estimates with the most significant effect on the amounts recognised in the statutory financial statements are discussed below:
Recoverability of intercompany receivables
The directors consider the intercompany receivables to be recoverable, based on the continued support as provided by the wider Wakefield Shirt Company Group.
Stock valuation
The valuation of year end stock and any related provision is a key area of judgement, and the directors have reviewed the standard costing applied and the requirement for any provision expected again net realisable value.
Debtor recoverability
Provisions for trade debtors are reviewed by the directors on an ongoing basis who use their specific industry knowledge and experience to ensure the correct judgements.
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 22 -
3
Turnover
The whole of the turnover is attributable to the principal activity of the group.
4
Exceptional item
2023
2022
£
£
Expenditure
Redundancy costs
-
179,629
-
179,629
5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Exchange losses
50,320
33,980
Depreciation of owned tangible fixed assets
153,817
49,486
Loss on disposal of tangible fixed assets
1,579
-
Defined contribution pension cost
69,181
27,729
Defined benefit pension cost
91,000
85,000
Operating lease charges
56,349
113,475
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
13,000
17,394
Audit of the financial statements of the company's subsidiaries
16,500
22,913
29,500
40,307
For other services
Taxation compliance services
4,100
4,650
All other non-audit services
7,750
-
11,850
4,650
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 23 -
7
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
79
85
2
2
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,836,432
2,096,060
116,490
141,211
Social security costs
157,283
110,479
15,458
-
Pension costs
160,181
112,729
91,000
85,000
2,153,896
2,319,268
222,948
226,211
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
83,629
80,216
Company pension contributions to defined contribution schemes
1,681
1,501
85,310
81,717
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on the net defined benefit asset
1,000
10
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
526,143
163,844
Interest on invoice finance arrangements
33,039
559,182
163,844
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 24 -
11
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 31 December 2022
3,298,185
7,953,064
191,642
200,992
11,643,883
Additions
137,249
52,972
157,131
347,352
Disposals
(462,310)
(7,221,840)
(173,946)
(7,858,096)
Transfers
(875)
875
At 30 December 2023
2,835,000
869,348
244,614
157,131
27,046
4,133,139
Depreciation and impairment
At 31 December 2022
524,523
7,611,195
122,904
200,992
8,459,614
Depreciation charged in the year
28,350
93,167
16,398
15,902
153,817
Eliminated in respect of disposals
(462,310)
(7,177,761)
(173,946)
(7,814,017)
At 30 December 2023
90,563
526,601
139,302
15,902
27,046
799,414
Carrying amount
At 30 December 2023
2,744,437
342,747
105,312
141,229
3,333,725
At 30 December 2022
2,773,662
341,869
68,738
3,184,269
Company
Freehold land and buildings
Fixtures and fittings
Total
£
£
£
Cost
At 31 December 2022
2,835,000
191,642
3,026,642
Additions
2,963
2,963
At 30 December 2023
2,835,000
194,605
3,029,605
Depreciation and impairment
At 31 December 2022
62,213
122,904
185,117
Depreciation charged in the year
28,350
15,090
43,440
At 30 December 2023
90,563
137,994
228,557
Carrying amount
At 30 December 2023
2,744,437
56,611
2,801,048
At 30 December 2022
2,772,787
68,738
2,841,525
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 25 -
12
Investment property
Group
Company
2023
2023
£
£
Fair value
At 31 December 2022 and 30 December 2023
4,820,000
4,820,000
The 2023 valuations were made by the Directors, on an open market value basis by reference to market evidence of transaction prices for similar properties.
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
149,757
222,449
581,813
3,335,612
Movements in fixed asset investments
Group
Shares in subsidiaries
£
Cost or valuation
At 31 December 2022 and 30 December 2023
222,449
Impairment
At 31 December 2022
-
Impairment losses
72,692
At 30 December 2023
72,692
Carrying amount
At 30 December 2023
149,757
At 30 December 2022
222,449
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
13
Fixed asset investments
(Continued)
- 26 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 31 December 2022
3,335,612
Movements
80,000
At 30 December 2023
3,415,612
Impairment
At 31 December 2022
-
Impairment losses
2,833,799
At 30 December 2023
2,833,799
Carrying amount
At 30 December 2023
581,813
At 30 December 2022
3,335,612
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 27 -
14
Subsidiaries
Details of the company's subsidiaries at 30 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Company Image Limited
England and Wales
Ordinary
100.00
Double Two (International) Limited
England and Wales
Ordinary
100.00
Double Two Limited
England and Wales
Ordinary
100.00
Kingswell (Fashion Stores) Limited
England and Wales
Ordinary
100.00
L.J. & M. Refson Limited
England and Wales
Ordinary
100.00
Shirtmaster Limited
England and Wales
Ordinary
100.00
The Top Twenty Shirt Company Limited
England and Wales
Ordinary
100.00
Threadneedle Company Image Limited
England and Wales
Ordinary
100.00
Topflight Uniforms Limited
England and Wales
Ordinary
100.00
Wakefield Drapers Limited
England and Wales
Ordinary
100.00
Wm Sugden & Sons Limited
England and Wales
Ordinary
100.00
Double Two Limited, Threadneedle Company Image Limited and Wm Sugden & Sons Limited are exempt from audit by virtue of S479a of The Companies Act 2006.
Wakefield Shirt Company (The) Limited guarantees all outstanding liabilities to which the companies are subject to as at 30 December 2023 until they are satisfied in full. The guarantee is enforceable against Wakefield Shirt Company (The) Limited by any person to whom the companies are liable in respect of those liabilities.
15
Associates
Details of associates at 30 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Double Two India Private Limited
India
Ordinary
50
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
72,810
424,361
-
-
Finished goods and goods for resale
2,327,925
1,706,854
2,400,735
2,131,215
-
-
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 28 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,333,328
1,422,566
127,531
55,244
Amounts owed by group undertakings
-
-
-
625,579
Other debtors
88,046
375,440
24,534
9,748
Prepayments and accrued income
528,273
237,115
13,095
1,949,647
2,035,121
152,065
703,666
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
2,119,905
-
Other debtors
48,867
-
48,867
2,119,905
-
Deferred tax asset (note 21)
200,937
200,937
200,937
48,867
2,320,842
-
Total debtors
2,150,584
2,083,988
2,472,907
703,666
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
11
3,724,987
11
1,426,299
Trade creditors
1,902,748
1,323,018
54,669
(11,890)
Amounts owed to group undertakings
356,550
291,807
Other taxation and social security
346,612
642,658
50,020
38,264
Other creditors
1,938,124
1,218,786
975,174
684,436
Accruals and deferred income
346,562
814,318
165,553
536,164
4,534,057
7,723,767
1,601,977
2,965,080
Invoice financing creditors are secured by a debenture held by Cynergy Business Finance Limited containing a fixed and floating charge over all the undertakings and all property and assets present and future.
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 29 -
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
4,650,000
586,974
4,650,000
586,976
Other creditors
1,646
4,650,000
588,620
4,650,000
586,976
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
4,650,000
2,338,544
4,650,000
1,971,175
Bank overdrafts
11
1,973,417
11
42,100
4,650,011
4,311,961
4,650,011
2,013,275
Payable within one year
11
3,724,987
11
1,426,299
Payable after one year
4,650,000
586,974
4,650,000
586,976
The bank loan provided by HS Credit (Manchester) Ltd is secured by a debenture by way of first legal mortgage on all properties within the group. There is a first floating charge over all other property, assets and rights, both present and future dated 12 January 2023.
The bank loan provided by HS Credit (Manchester) Ltd is also secured on a joint and several personal guarantee from the directors in respect of the obligations of the borrower to HS Credit (Manchester) Ltd to £200,000 each, plus interest and costs in an agreed form.
All other bank loans are secured by way of a debenture dated 20 October 2014 which provides a fixed and floating charge over assets of the group.
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Tax losses
-
-
200,937
-
Revaluation of investment property
214,253
214,253
-
-
214,253
214,253
200,937
-
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
21
Deferred taxation
(Continued)
- 30 -
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Tax losses
-
-
200,937
-
Revaluation of investment property
214,253
214,253
-
-
214,253
214,253
200,937
-
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 31 December 2022
214,253
214,253
Effect of change in tax rate - profit or loss
(200,937)
(200,937)
Liability at 30 December 2023
13,316
13,316
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
69,181
27,729
Defined Benefit Scheme
The group operates a defined contributions pension scheme. The assets of the scheme are held seperately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £142,000 (2022 - £59,583). Contributions totalling £10,026 (2022 - £13,350) were payable to the fund at the reporting date and are included in creditors.
The Group operates a Defined Benefit Pension Scheme.
Under the scheme the employees are entitled to retirement benefits varying between 0% and 66.66% of final salary attainment of a retirement age of 65. No other post retirement benefits are provided.
The most recent acturial valuations of plan assets and the present vale of the defined benefit obligation, the current service cost and past service cost were measured using the projected unit credit methdod.
Reconciliation of present value of plan liabilities:
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
22
Retirement benefit schemes
(Continued)
- 31 -
2023
2022
Reconciliation of present value of plan liabilities
£
£
At the beginning of the year
8,840,000
12,313,000
Current service cost
28,000
51,000
Interest cost
414,000
243,000
Contributions
21,000
21,000
Past service cost
(479,000)
(439,000)
Actuarial gain
64,000
(3,349,000)
At the end of the year
8,888,000
8,840,000
Composition of plan liabilities:
2023
2022
£
£
Wholly unfunded obligations
8,888,000
8,840,000
Total plan liabilities
8,888,000
8,840,000
Reconciliation of present value of plan assets:
2023
2022
£
£
At the beginning of the year
9,570,000
12,399,000
Interest income
450,000
243,000
Actuarial gains/losses
240,000
(2,746,000)
Contributions
142,000
126,000
Benefits paid
(479,000)
(439,000)
Contributions paid by scheme members
21,000
21,000
Others
(63,000)
(34,000)
At the end of the year
9,881,000
9,570,000
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
22
Retirement benefit schemes
(Continued)
- 32 -
Composition of plan assets:
2023
2022
£
£
Equity instruments
4,761,000
4,391,000
Debt instruments
2,777,000
2,685,000
Property instruments
864,000
923,000
Cash
(27,000)
30,000
Annuities
1,452,000
1,541,000
Other
54,000
-
Total plan assets
9,881,000
9,570,000
2023
2022
£
£
Fair value of plan assets
9,881,000
9,570,000
Present value of plan liabilities
(8,888,000)
(8,840,000)
Unrecognised pension asset
(993,000)
(730,000)
Net pension scheme liability
-
-
The amounts recognised in profit or loss are as follows:
2023
2022
£
£
Current service cost
-
51,000
Net Interest on defined benefit liability/asset
(1,000)
-
Administration expenses
91,000
34,000
Total
90,000
85,000
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
22
Retirement benefit schemes
(Continued)
- 33 -
Principal actuarial assumptions at the reporting date (expressed as weighted averages):
2023
2022
%
%
Discount rate
4.6
4.8
Expected rate of salary increases
2.9
3.0
Mortality rates
2023
2022
Assumed life expectations on retirement at age 65:
Years
Years
Retiring today
- Males
19.9
20.1
- Females
23.0
23.1
Retiring in 20 years
- Males
20.8
21.1
- Females
24.1
24.3
23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
4,504
4,504
4,504
4,504
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference A shares of £1 each
35,000
35,000
35,000
35,000
Preference B shares of £1 each
10,000
10,000
10,000
10,000
Preference C shares of £1 each
1,125,000
1,125,000
1,125,000
1,125,000
Preference D shares of £1 each
500,000
500,000
500,000
500,000
Preference E shares of £1 each
300,000
300,000
300,000
300,000
1,970,000
1,970,000
1,970,000
1,970,000
Preference shares classified as equity
1,970,000
1,970,000
Total equity share capital
1,974,504
1,974,504
The ordinary shares carry full voting rights.
The A, B, C, D and E preference shares carry no voting rights.
On 29 July 2020, the company allotted 300,000 Preference E shares of £1 each at par value.
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 34 -
24
Reserves
Profit and loss reserves
Revaluation reserve
This includes the historical movements prior to the adoption of FRS102 in valuation of the investment property and freehold land and buildings.
Capital Redemption reserve
This reserve records the nominal value of shares repurchased by the company.
Profit and loss account
The profit and loss account represents the accumulated profits and losses of the group and company less any dividends.
25
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
110,691
99,632
7,947
15,296
Between two and five years
187,928
214,997
31,026
89,336
298,619
314,629
38,973
104,632
26
Contingent liabilities
The group has given a guarantee dated 5th March 1996 to H M Revenue and Customs for £100,000 with recourse.
27
Related party transactions
The company has taken advantage of the exemption permitted by section 33 'Related Party Disclosures' of Financial Reporting Standard 102 'The Financial Reporting Standard Applicable in the UK and Republic of Ireland' from the requirement to disclose transactions between wholly owned group companies on the grounds that the consolidated financial statements are prepared by the ultimate parent company.
28
Controlling party
The company was under the control of the directors by virtue of their shareholdings.
WAKEFIELD SHIRT COMPANY LIMITED(THE)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 35 -
29
Cash generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(236,893)
263,624
Adjustments for:
Taxation credited
(200,937)
Finance costs
559,182
174,927
Pension finance income
(1,000)
-
Loss on disposal of tangible fixed assets
1,579
-
Adjustment of derecognition of tangible asset
42,500
Fair value gain on investment properties
(30,000)
Depreciation and impairment of tangible fixed assets
153,817
49,486
Pension scheme non-cash movement
(52,000)
-
Movements in working capital:
Increase in stocks
(269,520)
(245,409)
Decrease/(increase) in debtors
134,341
(588,522)
Increase in creditors
533,620
576,283
Cash generated from operations
664,689
200,389
30
Analysis of changes in net debt - group
31 December 2022
Cash flows
30 December 2023
£
£
£
Cash at bank and in hand
7,847
169,897
177,744
Bank overdrafts
(1,973,417)
1,973,406
(11)
(1,965,570)
2,143,303
177,733
Borrowings excluding overdrafts
(2,338,544)
(2,311,456)
(4,650,000)
(4,304,114)
(168,153)
(4,472,267)
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