Company registration number 04141044 (England and Wales)
BROWNS PRINT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
BROWNS PRINT LIMITED
COMPANY INFORMATION
Directors
Mr T P F Guest
Mr D L Baldwin
Mr D K C Edwards
Company number
04141044
Registered office
Unit B Cobalt Way
Foxdenton Lane
Middleton
Manchester
M24 1NN
Auditor
Pierce C A Limited
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
Business address
Unit B Cobalt Way
Foxdenton Lane
Middleton
Manchester
M24 1NN
BROWNS PRINT LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 25
BROWNS PRINT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors are pleased to present this Strategic Report, highlighting another successful year of growth and investment for Browns Print Limited. The company continues to strengthen its position in the market through strategic investments, operational efficiencies, and a commitment to quality and customer service.
Review of the business
Browns Print Limited operates from a 30,000 sq. ft. state-of-the-art facility in Middleton, specialising in high-quality lithographic print, digital print, specialist finishing, and fulfilment services. The company’s ongoing investments in cutting-edge technology and automation ensure that it remains at the forefront of the industry, enhancing efficiency and maintaining its competitive advantage.
As part of its commitment to quality and sustainability, the company has successfully obtained ISO 9001 and ISO 14001 integrated certification. This certification reflects Browns Print Limited’s dedication to maintaining the highest standards of quality management and environmental responsibility, reinforcing its position as a trusted and responsible industry leader.
Financial Results
The financial performance for the year reflects the company’s strong market position and operational resilience. Turnover for the year ended 30 September 2024 increased to £13,916,763 (2023: £11,745,935), demonstrating robust sales growth. Profit before taxation also saw an increase, reaching £1,060,041 (2023: £271,897), reflecting operational efficiencies and strategic cost management.
The directors remain highly satisfied with the company’s financial performance and continue to strengthen the balance sheet and cash flow position. The company successfully navigated rising operational costs, particularly labour costs, which are expected to increase further due to government budgetary changes. However, proactive cost management and efficiency improvements have helped mitigate these pressures.
Investment and Competitive Edge
A key highlight of the year was the continued investment in new plant and machinery. This investment has not only enhanced the company’s production capabilities but has also contributed to increased productivity and reduced waste, further strengthening its competitive edge in the industry. Such strategic investments reinforce the company’s commitment to innovation and operational excellence.
Key Performance Indicators
The directors closely monitor the company’s performance against budgets and prior year results. Key Performance Indicators (KPIs) include both financial and operational metrics, ensuring that productivity, efficiency, and service levels remain high. The company benefits from a robust reporting framework, with daily, weekly, and monthly performance reviews guiding strategic decisions.
BROWNS PRINT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Principal risks and uncertainties
The company maintains a comprehensive risk management framework, identifying and addressing key risks proactively.
Credit Risk: Rigorous credit control procedures ensure that customer accounts are carefully monitored. The company continues to maintain strong credit management, with a very low level of bad debt.
Market Competition: The printing industry remains highly competitive, but Browns Print Limited mitigates this risk through strong customer relationships, excellent service, and competitive pricing. The company remains focused on quality and efficiency to retain and grow its market share.
Labour Costs: Due to government policy changes, labour costs have increased and are expected to rise further. The company remains committed to retaining and developing its skilled workforce while managing cost pressures effectively.
Energy Costs: Rising energy prices remain a challenge; however, the company has taken proactive steps, such as investing in energy-efficient machinery, solar power, LED lighting, and voltage optimisation. A newly negotiated energy contract will further reduce costs over the next two years.
Anti-Corruption and Compliance: The company maintains the highest standards of integrity, adhering to the UK Bribery Act 2010 and ensuring that all business activities are conducted ethically and transparently.
Other information and explanations
Future Outlook
The directors remain highly optimistic about the company’s future. Sales activity remains strong, and demand for high-quality print solutions continues to grow. Future capital expenditure (CapEx) is expected to remain consistent with previous years, ensuring ongoing investment in technology and infrastructure to support business growth.
The company’s greatest asset remains its dedicated and highly skilled workforce. Their expertise, combined with the latest technological advancements, positions Browns Print Limited for continued success.
Environmental Commitment
Browns Print Limited remains committed to sustainability and reducing its environmental impact. The company has installed 444 450W solar panels on its manufacturing plant, significantly reducing its carbon footprint. Additionally, an effective recycling programme has minimised waste and created a new revenue stream, reinforcing the company’s dedication to responsible business practices.
The recent attainment of ISO 14001 certification further demonstrates the company’s proactive approach to environmental management. By integrating this certification with ISO 9001, Browns Print Limited ensures a streamlined and effective approach to both quality assurance and environmental sustainability.
Conclusion
Despite external challenges, Browns Print Limited has delivered another year of strong growth and profitability. With continued investment in technology, operational efficiencies, and a skilled workforce, the company is well-positioned to sustain its success in the coming years.
Mr T P F Guest
Director
21 May 2025
BROWNS PRINT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company continued to be that of printing.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £286,000. 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:
Mr T P F Guest
Mr D L Baldwin
Mr D K C Edwards
Auditor
The auditor, Pierce C A Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
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
Mr T P F Guest
Director
21 May 2025
BROWNS PRINT LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
BROWNS PRINT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BROWNS PRINT LIMITED
- 5 -
Opinion
We have audited the financial statements of Browns Print Limited (the 'company') for the year ended 30 September 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
BROWNS PRINT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF BROWNS PRINT LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.
BROWNS PRINT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF BROWNS PRINT LIMITED
- 7 -
Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the company's licence to operate. We identified the following areas as those most likely to have such an effect: laws related to health and safety and the regulated nature of the company's activities.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance
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.
We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:
· Matters are discussed amongst the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud
· Identifying and assessing the design and effectiveness of controls that management have in place to prevent and detect fraud
· Detecting and responding to the risks of fraud following discussions with management and enquiring as to whether management have knowledge of any actual, suspected or alleged fraud;
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Simon Diggle
Senior Statutory Auditor
For and on behalf of Pierce C A Limited
28 May 2025
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
BROWNS PRINT LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
as restated
Notes
£
£
Turnover
3
13,916,763
11,745,935
Cost of sales
(7,926,041)
(6,947,984)
Gross profit
5,990,722
4,797,951
Administrative expenses
(4,464,965)
(4,082,593)
Other operating income
19,747
12,970
Operating profit
4
1,545,504
728,328
Interest receivable and similar income
7
5,222
Interest payable and similar expenses
8
(490,685)
(456,431)
Profit before taxation
1,060,041
271,897
Tax on profit
9
(262,900)
(3,855)
Profit for the financial year
797,141
268,042
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BROWNS PRINT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
as restated
£
£
Profit for the year
797,141
268,042
Other comprehensive income
-
-
Total comprehensive income for the year
797,141
268,042
BROWNS PRINT LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
12
8,627,944
8,612,274
Current assets
Stocks
13
282,706
280,223
Debtors
14
4,606,321
3,848,309
Cash at bank and in hand
220,733
279,984
5,109,760
4,408,516
Creditors: amounts falling due within one year
15
(4,725,231)
(4,199,508)
Net current assets
384,529
209,008
Total assets less current liabilities
9,012,473
8,821,282
Creditors: amounts falling due after more than one year
16
(3,833,600)
(4,507,796)
Provisions for liabilities
Deferred tax liability
19
1,201,143
846,897
(1,201,143)
(846,897)
Net assets
3,977,730
3,466,589
Capital and reserves
Called up share capital
21
100
100
Revaluation reserve
1,302,083
1,302,083
Profit and loss reserves
2,675,547
2,164,406
Total equity
3,977,730
3,466,589
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 21 May 2025 and are signed on its behalf by:
Mr T P F Guest
Director
Company registration number 04141044 (England and Wales)
BROWNS PRINT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 30 September 2023:
Balance at 1 October 2022
100
1,302,083
2,156,364
3,458,547
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
268,042
268,042
Dividends
10
-
-
(260,000)
(260,000)
Balance at 30 September 2023
100
1,302,083
2,164,406
3,466,589
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
797,141
797,141
Dividends
10
-
-
(286,000)
(286,000)
Balance at 30 September 2024
100
1,302,083
2,675,547
3,977,730
BROWNS PRINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
1
Accounting policies
Company information
Browns Print Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit B Cobalt Way, Foxdenton Lane, Middleton, Manchester, M24 1NN.
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.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
The financial statements of the company are consolidated in the financial statements of Guest Investments Limited. These consolidated financial statements are available from its registered office, Unit B, Cobalt Way, Foxdenton Lane, Middleton, Manchester, M24 1NN.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and has been amortised on a systematic basis over its expected life of between 7 and 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
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.
BROWNS PRINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
2% straight line
Plant and equipment
10% / 20% straight line
Computers
33% straight line
Motor vehicles
33% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
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.
BROWNS PRINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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 company 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 company after deducting all of its liabilities.
BROWNS PRINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
BROWNS PRINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
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 when the company has 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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
BROWNS PRINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
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 directors do not believe that there are any accounting policies that would be likely to produce materially different results should there be a change to the underlying judgements, estimates and assumptions.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Printing sales
13,677,940
11,488,053
Recycling income
219,736
195,337
Other sales
19,087
62,545
13,916,763
11,745,935
2024
2023
£
£
Other revenue
Interest income
5,222
-
Grants received
-
10,650
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(10,650)
Fees payable to the company's auditor for the audit of the company's financial statements
10,000
10,000
Depreciation of owned tangible fixed assets
111,012
102,069
Depreciation of tangible fixed assets held under finance leases
767,147
670,619
Loss/(profit) on disposal of tangible fixed assets
67,487
(154,776)
Amortisation of intangible assets
-
19,007
BROWNS PRINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
82
75
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,940,994
2,644,280
Social security costs
308,866
292,134
Pension costs
118,624
150,710
3,368,484
3,087,124
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
160,045
156,030
Company pension contributions to defined contribution schemes
61,846
99,142
221,891
255,172
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
5,222
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
66,732
70,651
Interest on finance leases and hire purchase contracts
423,953
385,780
490,685
456,431
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(91,346)
BROWNS PRINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
9
Taxation
2024
2023
£
£
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
354,246
3,855
Total tax charge
262,900
3,855
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,060,041
271,897
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
265,010
67,974
Tax effect of expenses that are not deductible in determining taxable profit
2,938
1,742
Adjustments in respect of prior years
(91,346)
Permanent capital allowances in excess of depreciation
(99,756)
Deferred tax adjustments in respect of prior years
86,298
Transition adjustments
-
33,895
Taxation charge for the year
262,900
3,855
10
Dividends
2024
2023
£
£
Interim paid
286,000
260,000
11
Intangible fixed assets
Goodwill
£
Cost
At 1 October 2023 and 30 September 2024
429,189
Amortisation and impairment
At 1 October 2023 and 30 September 2024
429,189
Carrying amount
At 30 September 2024
At 30 September 2023
BROWNS PRINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
11
Intangible fixed assets
(Continued)
- 20 -
12
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2023
2,800,000
7,800,594
159,903
375,895
11,136,392
Additions
410,516
65,373
504,780
980,669
Disposals
(255,998)
(22,225)
(278,223)
At 30 September 2024
2,800,000
7,955,112
225,276
858,450
11,838,838
Depreciation and impairment
At 1 October 2023
2,250,448
135,451
138,219
2,524,118
Depreciation charged in the year
745,944
29,348
102,867
878,159
Eliminated in respect of disposals
(184,148)
(7,235)
(191,383)
At 30 September 2024
2,812,244
164,799
233,851
3,210,894
Carrying amount
At 30 September 2024
2,800,000
5,142,868
60,477
624,599
8,627,944
At 30 September 2023
2,800,000
5,550,146
24,452
237,676
8,612,274
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and equipment
4,632,349
5,005,470
Motor vehicles
624,599
237,676
5,256,948
5,243,146
Land and buildings with a carrying amount of £2,800,000 were revalued at 30 September 2022 by Lamb & Swift, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The directors still deem this to be an appropriate valuation for the land and buildings.
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been £1,497,917.
BROWNS PRINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
13
Stocks
2024
2023
£
£
Raw materials and consumables
236,437
243,171
Work in progress
46,269
37,052
282,706
280,223
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,845,592
2,446,921
Corporation tax recoverable
96,568
Amounts owed by group undertakings
1,257,156
1,257,156
Other debtors
403,068
135,000
Prepayments and accrued income
3,937
9,232
4,606,321
3,848,309
15
Creditors: amounts falling due within one year
2024
2023
as restated
Notes
£
£
Bank loans
17
214,273
215,029
Obligations under finance leases
18
1,138,915
934,349
Invoice discounting
1,007,348
820,141
Trade creditors
1,958,526
1,831,775
Taxation and social security
103,853
106,297
Other creditors
108,838
4,105
Accruals and deferred income
193,478
287,812
4,725,231
4,199,508
The invoice discounting facility is secured by a fixed and floating charge over the assets of the company.
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans
17
517,357
730,873
Obligations under finance leases
18
3,316,243
3,776,923
3,833,600
4,507,796
BROWNS PRINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
17
Loans and overdrafts
2024
2023
£
£
Bank loans
731,630
945,902
Other loans
1,007,348
820,141
1,738,978
1,766,043
Payable within one year
1,221,621
1,035,170
Payable after one year
517,357
730,873
Bank loans of £500,018 (2023 - £587,017) are secured by fixed and floating charges held over all the property and undertakings of the company.
Bank loans totalling £231,612 (2023 - £358,885) are secured by the UK Government under the Coronavirus Business Interruption Loan Scheme "CBILS".
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
1,138,915
907,974
In two to five years
3,316,243
3,803,298
4,455,158
4,711,272
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Amounts in respect of obligations under hire purchase contracts are secured against the assets to which they relate.
BROWNS PRINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
1,424,304
1,437,995
Tax losses
(217,053)
(588,178)
Retirement benefit obligations
(6,108)
(2,920)
1,201,143
846,897
2024
Movements in the year:
£
Liability at 1 October 2023
846,897
Charge to profit or loss
354,246
Liability at 30 September 2024
1,201,143
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
118,624
150,710
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
BROWNS PRINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
22
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
3,148
3,148
Between two and five years
6,297
9,445
9,445
12,593
23
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
2,578,200
393,230
BROWNS PRINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
24
Ultimate controlling party
The parent company is Guest Investments Ltd, a company registered in England and Wales.
The ultimate controlling party is Mr T P F Guest, by virtue of his controlling shareholding in Guest Investments Ltd.
25
Prior period adjustment
To accurately record revenue in the prior period it was necessary to restate the company's comparative figures. The net effect of the restatement was to reduce revenue and increase accruals by £135,578.
Changes to the balance sheet
As previously reported
Adjustment
As restated at 30 Sep 2023
£
£
£
Creditors due within one year
Other creditors
(1,988,114)
(135,578)
(2,123,692)
Capital and reserves
Profit and loss reserves
2,299,984
(135,578)
2,164,406
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 30 September 2023
£
£
£
Turnover
11,881,513
(135,578)
11,745,935
Profit for the financial period
403,620
(135,578)
268,042
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