Company registration number 04397624 (England and Wales)
ALBANY PRODUCTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
ALBANY PRODUCTS LIMITED
COMPANY INFORMATION
Chairman
K Courtney
Directors
S Courtney
N M Hunter
D A Courtney
A R Crankshaw
G C G McKevitt
Company number
04397624
Registered office
Ship Canal House
98 King Street
Manchester
United Kingdom
M2 4WU
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
ALBANY PRODUCTS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
ALBANY PRODUCTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -

The directors present the strategic report for the year ended 31 August 2024.

Principal Activity

 

The principal activity of the company is that of a wholesaler of consumable goods.

 

Business Review

 

The Directors report another strong performance for the year ending August 2024. Turnover increase in the UK, although small, was pleasing with growth to new and established customers exceeding reductions in others. Manufacturers’ costs were stable in comparison to the previous year and direct operational costs were well controlled and within budget. General stock availability was consistent. Overall efficiency resulted in positive returns for the year.

Albany has retained all existing staff, and they continue to benefit from experience gained and show a willingness to take on responsibilities within their fields of operation. Staff remain incentivised through the company EMI scheme and enhanced pension contributions. Once again, they need to be commended for the commitment they have shown to ensure that high customer service levels have been achieved throughout the year.

The business has maintained AA BRCGC Agents & Brokers accreditation and ISO 9001:2015 certification. Investment in IT development and solutions to analyse and control key indices and trends continues. This will further enhance existing reporting practices, performance and product analysis. Banking facilities are provided by Barclays plc and the business remains in a strong position to move forward.

 

Principle risk and Uncertainties

 

The company holds or issues financial instruments in order to achieve three main objectives, being:

 

(a) to finance its operations;

 

(b) to manage its exposure to interest and currency risks arising from its operations and sources of finance; and

 

(c) for trading purposes.

 

In addition, various financial instruments (e.g. trade debtors, trade creditors, accruals and prepayments) arise directly from the company's operations.

 

Transactions in financial instruments result in the company assuming or transferring to another party one or more of the financial risks described below.

 

Liquidity risk

 

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

 

 

Interest rate risk

 

The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on bank overdrafts and loans.

ALBANY PRODUCTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -

Credit risk

 

Investments of cash surpluses and borrowings are made through banks and companies which must fulfil credit rating criteria approved by the board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary.

 

Currency risk

 

The company's principal foreign currency exposures arise from trading with overseas companies. The company's policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling.

Key performance indicators

 

The Board is, once again, satisfied that Albany’s key performance indicators relating to turnover, financial control, margin and stock management are clear and being met.

Additional Information

The work undertaken by the business, under the Elaine Bain Family Trust (EBFT) banner, continues with positive results reported by partner schools in the UK and partner organisations in Portugal. Development of both the UK and Portuguese sites has been extensive, with additional resources adding to the variety of activities and support offered to EBFT children.

New appointments and structural change have seen increases to the number of partner organisations EBFT is working with and strengthened existing relationships.

The long-term vision remains to assist children throughout their school years and into career paths.

Every credit needs to go to all those who continue to make the work of the charity so successful in helping the children it engages with.

The business continues to support the activities of the local hospice.

 

On behalf of the board

N M Hunter
Director
1 May 2025
ALBANY PRODUCTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 August 2024.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

K Courtney (Chairman)
S Courtney
N M Hunter
D A Courtney
A R Crankshaw
G C G McKevitt
Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £2,186,455 during the year. Subsequent to the balance sheet date, the company paid a further dividend amounting to £2,000,000.

Charitable donations

During the year the company made charitable donations of £531,524 (2023: £244,784).

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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

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.

 

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

 

ALBANY PRODUCTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -
On behalf of the board
N M Hunter
Director
1 May 2025
ALBANY PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ALBANY PRODUCTS LIMITED
- 5 -
Opinion

We have audited the financial statements of Albany Products Limited (the 'company') for the year ended 31 August 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.

Other information

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:

ALBANY PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ALBANY PRODUCTS 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:

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.

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.

ALBANY PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ALBANY PRODUCTS LIMITED
- 7 -

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, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company’s shareholder 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 shareholder 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 shareholder for our audit work, for this report, or for the opinions we have formed.

Graham Rigby
Senior Statutory Auditor
For and on behalf of Azets Audit Services
7 May 2025
Chartered Accountants
Statutory Auditor
Ship Canal House
98 King Street
Manchester
M2 4WU
ALBANY PRODUCTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
2024
2023
Notes
£'000
£'000
Turnover
3
76,784
77,038
Cost of sales
(69,464)
(69,140)
Gross profit
7,320
7,898
Distribution costs
(2,867)
(2,937)
Administrative expenses
(2,463)
(2,297)
Operating profit
4
1,990
2,664
Interest receivable and similar income
17
50
Interest payable and similar expenses
(238)
(169)
Profit before taxation
1,769
2,545
Tax on profit
7
(398)
(592)
Profit for the financial year
1,371
1,953

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ALBANY PRODUCTS LIMITED
BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 9 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
8
2,572
2,377
Current assets
Stocks
9
4,515
5,023
Debtors
10
5,129
5,759
Cash at bank and in hand
1,210
3,608
10,854
14,390
Creditors: amounts falling due within one year
11
(10,755)
(12,337)
Net current assets
99
2,053
Total assets less current liabilities
2,671
4,430
Creditors: amounts falling due after more than one year
12
(1,000)
(2,000)
Provisions for liabilities
Deferred tax liability
13
141
86
(141)
(86)
Net assets
1,530
2,344
Capital and reserves
Called up share capital
15
10
9
Share premium account
87
87
Profit and loss reserves
1,433
2,248
Total equity
1,530
2,344
The financial statements were approved by the board of directors and authorised for issue on 1 May 2025 and are signed on its behalf by:
N M Hunter
Director
Company Registration No. 04397624
ALBANY PRODUCTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
£'000
£'000
£'000
£'000
Balance at 1 September 2022
9
87
4,064
4,160
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
-
1,953
1,953
Dividends
-
-
(3,769)
(3,769)
Balance at 31 August 2023
9
87
2,248
2,344
Year ended 31 August 2024:
Profit and total comprehensive income for the year
-
-
1,371
1,371
Dividends
-
-
(2,186)
(2,186)
Balance at 31 August 2024
9
87
1,433
1,529
ALBANY PRODUCTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
2024
2023
as restated
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash (absorbed by)/generated from operations
20
(1,371)
576
Interest paid
(238)
(169)
Income taxes paid
(567)
(802)
Net cash outflow from operating activities
(2,176)
(395)
Investing activities
Purchase of tangible fixed assets
(263)
(23)
Proceeds from disposal of tangible fixed assets
3
-
0
Interest received
17
50
Net cash (used in)/generated from investing activities
(243)
27
Financing activities
Net movement on invoice discounting
(237)
755
Net movement on bank loans
444
(174)
Dividends paid
(186)
(269)
Net cash generated from financing activities
21
312
Net decrease in cash and cash equivalents
(2,398)
(56)
Cash and cash equivalents at beginning of year
3,608
3,664
Cash and cash equivalents at end of year
1,210
3,608
ALBANY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -
1
Accounting policies
Company information

Albany Products Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ship Canal House, 98 King Street, Manchester, United Kingdom, M2 4WU.

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 £'000.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. The directors consider that the current and forecasted levels of cash will be sufficient to meet the company's liabilities as they fall due. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

In reaching this conclusion, the directors have considered the expected future performance of the company compared to its budgeted performance up to the date of signing the financial statements, the financial position of the company at the balance sheet date, and the expected future cash flows of the company in the 12 months following the date of signing the financial statements.

 

The directors continually monitor the company's cash reserves, and are able to drawdown funds from external debt facilities if required.

1.3
Turnover

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

 

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

ALBANY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 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:

Fixtures and fittings
25% reducing balance
Office equipment
25% reducing balance
Motor vehicles
25% reducing balance

Land and buildings comprise freehold properties occupied by the company. The directors consider that the freehold properties are maintained in such a state of repair that their residual value is at least equal to their carrying value. Accordingly no depreciation is charged on the grounds of immateriality. Annual impairment reviews are undertaken and provisions made at the end of each reporting period where necessary.

 

Non-depreciation of the property is a departure from the Companies Act 2006, but in the director's opinion is necessary to give a true and fair view.

 

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.

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.

1.6
Cash at bank and in hand

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

1.7
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. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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.

ALBANY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 14 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction. 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
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.

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.

ALBANY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 15 -
1.9
Retirement benefits

 

Defined contribution pension plan

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

 

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

1.10
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income 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 lease asset are consumed.

1.11
Foreign exchange

The company's functional and presentational currency is GBP.

 

Transactions and balances

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

 

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

 

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account.

1.12

Finance costs

Finance costs are charged to the profit and loss account over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.

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.

 

Stock Provision

The directors have applied their knowledge of the operations of the business when reviewing the stock listing at the balance sheet date, and have made appropriate provision for any items deemed to be slow moving, obsolete or unsaleable at the current cost price. The charge to the profit and loss account is recognised in cost of sales.

 

 

ALBANY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -
3
Turnover

The whole of the turnover is attributable to the wholesale of consumable products.

2024
2023
£'000
£'000
Turnover analysed by geographical market
United Kingdom
76,613
75,709
Rest of Europe
159
1,327
Rest of World
12
2
76,784
77,038
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£'000
£'000
Exchange (gains)/losses
(8)
11
Auditor's remuneration
20
19
Non audit fees
19
14
Depreciation of owned tangible fixed assets
68
51
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Administration
23
22

Their aggregate remuneration comprised:

2024
2023
£'000
£'000
Wages and salaries
797
875
Social security costs
92
95
Pension costs
212
173
1,101
1,143
ALBANY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -
6
Directors' remuneration
2024
2023
£'000
£'000
Remuneration for qualifying services
290
313
Company pension contributions to defined contribution schemes
111
116
401
429

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2023 - 5).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£'000
£'000
Remuneration for qualifying services
113
145
7
Taxation
2024
2023
£'000
£'000
Current tax
UK corporation tax on profits for the current period
405
602
Adjustments in respect of prior periods
(62)
(13)
Total current tax
343
589
Deferred tax
Origination and reversal of timing differences
55
1
Other adjustments
-
0
2
Total deferred tax
55
3
Total tax charge
398
592
ALBANY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
7
Taxation
(Continued)
- 18 -

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
£'000
£'000
Profit before taxation
1,769
2,545
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.52%)
442
548
Tax effect of expenses that are not deductible in determining taxable profit
6
1
Depreciation on assets not qualifying for tax allowances
12
8
Under/(over) provided in prior years
(62)
(13)
Deferred tax adjustments in respect of prior years
-
0
2
Other movements
-
0
46
Taxation charge for the year
398
592
8
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Office equipment
Motor vehicles
Total
£'000
£'000
£'000
£'000
£'000
Cost
At 1 September 2023
2,238
109
259
207
2,813
Additions
15
82
120
46
263
Disposals
-
0
-
0
-
0
(10)
(10)
At 31 August 2024
2,253
191
379
243
3,066
Depreciation and impairment
At 1 September 2023
27
55
196
158
436
Depreciation charged in the year
-
0
21
29
17
67
Eliminated in respect of disposals
-
0
-
0
-
0
(9)
(9)
At 31 August 2024
27
76
225
166
494
Carrying amount
At 31 August 2024
2,226
115
154
77
2,572
At 31 August 2023
2,211
54
63
49
2,377
9
Stocks
2024
2023
£'000
£'000
Finished goods and goods for resale
4,515
5,023
ALBANY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -
10
Debtors
2024
2023
Amounts falling due within one year:
£'000
£'000
Trade debtors
4,454
4,947
Other debtors
170
236
Prepayments and accrued income
28
96
4,652
5,279
2024
2023
Amounts falling due after more than one year:
£'000
£'000
Other debtors
477
480
Total debtors
5,129
5,759
11
Creditors: amounts falling due within one year
2024
2023
£'000
£'000
Bank loans and overdrafts
444
-
0
Advance against the security of book debts
3,525
3,763
Trade creditors
2,784
2,903
Other creditors
305
338
Amounts owed to related parties
1,083
1,395
Corporation tax
125
349
Other taxation and social security
17
367
Director's current account
2,288
3,163
Accruals and deferred income
184
59
10,755
12,337

The advance against the security of book debts is secured by way of a fixed and floating charge over the undertaking and all of the assets of the company.

 

Barclays Bank PLC hold a charge as security on all debts and current liabilities owed to the bank this includes all present and future loans and facilities. The charge is secured against the property owned.

12
Creditors: amounts falling due after more than one year
2024
2023
£'000
£'000
Director's current account
1,000
2,000
ALBANY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
13
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£'000
£'000
Accelerated capital allowances
143
88
Short term timing differences
(2)
(2)
141
86
2024
Movements in the year:
£'000
Liability at 1 September 2023
86
Charge to profit or loss
55
Liability at 31 August 2024
141

 

14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
212
173

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.

At the balance sheet date, £8,000 (2023: £7,000) was payable to the fund, included within accruals.

ALBANY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary shares of £1 each
7,900
7,500
8
7
A Ordinary shares of £1 each
400
400
-
0
-
0
B Ordinary shares of £1 each
400
400
-
0
-
0
C Ordinary shares of £1 each
700
700
1
1
D Ordinary shares of £1 each
525
525
1
1
E Ordinary shares of £1 each
-
400
-
-
9,925
9,925
10
9

On 25 June 2024, 400 E Ordinary shares of £1 each were re-designated as 400 Ordinary shares of £1 each, each having pari-passu voting, dividend and capital rights with all other share classes.

 

The company has five classes of ordinary shares. Each class of shares carries full voting rights. Each class of shares carries a right to dividends as may be declared on that class of shares from time to time. Each class of shares is entitled to participate on a return of capital. Each class of shares is non-redeemable.

 

Due to re-designation of shares above, the value attributed to the total issued share capital has increased from £9,000 to £10,000 on a round £'000 basis. This has been reflected in the note above and on the face of the balance sheet. However, due to the fact that no additional shares have been issued in the period, the statement of changes in equity remains unchanged.

16
Operating lease commitments
Lessee

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
£'000
£'000
Within one year
1
-
0
Between two and five years
3
-
0
4
-
0
ALBANY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
17
Directors' transactions

During the year a director, K Courtney, provided funds and withdrew funds from the business via a directors' loan account. At 31 August 2024, there was a net balance due to K Courtney of £3,288,000 (2023: £5,162,000).

 

At the balance sheet date £186,000 (2023: £186,000) was owed to the company by N Hunter, included within other debtors. The maximum overdrawn balance in the year was £186,000.

 

At the balance sheet date £75,000 (2023: £75,000) was owed to the company by D Courtney, included within other debtors. The maximum overdrawn balance in the year was £75,000.

 

At the balance sheet date £23,000 (2023: £23,000) was owed to the company by G McKevitt, included within other debtors. The maximum overdrawn balance in the year was £23,000.

 

At the balance sheet date £63,000 (2023: £63,000) was owed to the company by A Crankshaw, included within other debtors. The maximum overdrawn balance in the year was £63,000.

 

18
Related party transactions

During the year the company made purchases from Albany Products Ireland Limited, a company related by common ownership, of £11,951,000 (2023: £12,836,000) and made sales to Albany Products Ireland Limited of £381,000 (2023: £485,000). At the balance sheet date £1,311,000 (2023: £1,790,000) was due to Albany Products Ireland Limited.

 

During the year, the spouse of a director of the company received emoluments for services provided to the company totalling £24,000 (2023: £23,000).

19
Ultimate controlling party

The company was under the control of a director, K Courtney, during the current and preceding period, by virtue of him owning the majority of the issued share capital of the company.

20
Cash (absorbed by)/generated from operations
2024
2023
as restated
£'000
£'000
Profit for the year after tax
1,371
1,953
Adjustments for:
Taxation charged
398
592
Finance costs
238
169
Investment income
(17)
(50)
Gain on disposal of tangible fixed assets
(2)
-
Depreciation and impairment of tangible fixed assets
68
52
Movements in working capital:
Decrease/(increase) in stocks
508
(396)
Decrease/(increase) in debtors
629
(1,115)
Decrease in creditors
(4,564)
(629)
Cash (absorbed by)/generated from operations
(1,371)
576
ALBANY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
20
Cash (absorbed by)/generated from operations
(Continued)
- 23 -

The comparative figures have been restated to represent dividends paid being reallocated from cash from financing actvities to cash generated from operations within 'decrease in creditors'.

21
Analysis of changes in net debt
1 September 2023
Cash flows
31 August 2024
£'000
£'000
£'000
Cash at bank and in hand
3,608
(2,398)
1,210
Borrowings excluding overdrafts
(3,763)
(206)
(3,969)
(155)
(2,604)
(2,759)
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