Company registration number 06009924 (England and Wales)
WINCH SOLUTIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
WINCH SOLUTIONS LIMITED
COMPANY INFORMATION
Directors
J P Bimson
J Bimson
M J Cullen
D Norman
L A Marriott
Company number
06009924
Registered office
Unit 17-18, Bradley Hall Trading Estate
Bradley Lane
Standish
Wigan
WN6 0XQ
Auditor
JS. Audit Limited
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
Business address
Unit 17-18, Bradley Hall Trading Estate
Bradley Lane
Standish
Wigan
WN6 0XQ
Bankers
HSBC Bank PLC
2-4 St Ann's Square
Manchester
M2 7HD
Handelsbanken PLC
3 Thomas More Square
London
E1W 1WY
WINCH SOLUTIONS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Notes to the financial statements
9 - 22
Detailed trading and profit and loss account
WINCH SOLUTIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The directors present the strategic report for the year ended 30 April 2024.

Review of the business

Turnover for the year ended 30 April 2024 was £4.89m (2023: £12.68m). Loss for the year ended 30 April 2024 was £2.31m (2023: £0.19m). The Balance Sheet position as of 30 April 2024 shows a net liability position amounting to £1.59m (2023: net asset position of £0.93m).

These metrics are the key performance indicators used by the business.

From February 2023 sales in the UK saw a downturn because end consumer demand had been saturated during an exceptional sales peak in the previous financial year, driven by the conflict between Russia and the Ukraine. The business, its customers and the retailers were therefore all left with high levels of excess stock. This downturn continues to date and post balance sheet, the decision has been made to exit the European market directly and instead supply the market from the UK via distributors.

Principal risks and uncertainties

A brief summary of the main business risk and mitigations in place for these are detailed below.

The main risks to the business are:

  1. Tariffs on imports from China into the U.S diluting margins

  2. Sales demand reduction – the business mitigates this risk by operating a diversified sales demographic; It operates in multiple product categories across multiple geographies in both business to business and direct to consumer markets via its own websites, Amazon and eBay.

  3. Shipping delays on product from our suppliers in China – the business mitigates this risk by carrying adequate inventory cover.

  4. The weaking of GBP against the USD, impacting on the cost of our product – the business mitigates this risk via a currency hedging strategy.

Increased container shipping costs – the business protects its margin by frequent product costing reviews and implementing selling price increases.

On behalf of the board

M J Cullen
Director
19 June 2025
WINCH SOLUTIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the company continued to be that of sales of power tools and winches.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £195,271. 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:

J P Bimson
J Bimson
M J Cullen
D Norman
L A Marriott
Financial instruments
Liquidity risk

The company manages its cash to minimise its borrowing requirements to minimise interest costs, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The company is exposed to base interest rate risk on the three-year, fixed term, repayment loan.  The Directors monitor changes in the interest rate and take appropriate action as and when deemed necessary.

Foreign currency risk

The company undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk through exchange rate fluctuations.  The Directors have mitigated the forecasted currency exchange requirements for the next 12 months in full, with fixed rate, forward hedging contracts.  The only foreign currency risk therefore lies in there being a larger requirement for currency exchange than forecasted, as the forecasted currency exchange requirements are fully hedged.

Credit risk

Debtors of all customers who trade on credit terms are insured via a credit insurance policy held.  Credit terms and limits are set after approval, which involves the insurer conducting a credit search on the customer.

Future developments

During 2025, the company continued to add new products to its portfolio, retailing them through its websites and Amazon account in the UK and also expanded its retail operations into Europe and North America via its own websites and Amazon.

Auditor

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

WINCH SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
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.

Strategic report

The company has chosen in accordance with Companies Act 2006, s.414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

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.

On behalf of the board
M J Cullen
Director
19 June 2025
WINCH SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WINCH SOLUTIONS LIMITED
- 4 -
Opinion

We have audited the financial statements of Winch Solutions Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of income and retained earnings, the balance sheet 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:

WINCH SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WINCH SOLUTIONS LIMITED (CONTINUED)
- 5 -
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, included within the directors' report, 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.

Irregularities and fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities including fraud is detailed below.

Based on our understanding of the company and sector, we identified that the principal risks of non-compliance with laws and regulations related to, but were not limited to, the Companies Act 2006, UK tax, employment, pension and health and safety legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

 

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements, and the risk of fraud in revenue recognition.

WINCH SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WINCH SOLUTIONS LIMITED (CONTINUED)
- 6 -

Our procedures to respond to risks identified included the following:

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities 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.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher Moss BSc F.C.A.
Senior Statutory Auditor
For and on behalf of JS. Audit Limited
26 June 2025
Chartered Accountants
Statutory Auditor
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
WINCH SOLUTIONS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
4,891,267
12,679,857
Cost of sales
(3,620,881)
(9,567,180)
Gross profit
1,270,386
3,112,677
Distribution costs
(409,934)
(888,225)
Administrative expenses
(988,478)
(2,301,105)
Other operating income
3,631
-
0
Exceptional item
4
(2,109,978)
-
0
Operating loss
5
(2,234,373)
(76,653)
Interest payable and similar expenses
8
(76,386)
(152,439)
Loss before taxation
(2,310,759)
(229,092)
Tax on loss
9
(14,185)
35,729
Loss for the financial year
(2,324,944)
(193,363)
Retained earnings brought forward
925,613
1,621,813
Dividends
10
(195,271)
(502,837)
Retained earnings carried forward
(1,594,602)
925,613

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

WINCH SOLUTIONS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
77,298
84,882
Tangible assets
12
120,477
155,120
197,775
240,002
Current assets
Stocks
14
2,315,254
2,767,766
Debtors
15
4,647,657
6,673,071
Cash at bank and in hand
170,005
1,054,652
7,132,916
10,495,489
Creditors: amounts falling due within one year
16
(8,925,193)
(9,556,139)
Net current (liabilities)/assets
(1,792,277)
939,350
Total assets less current liabilities
(1,594,502)
1,179,352
Provisions for liabilities
Provisions
18
-
0
253,639
-
(253,639)
Net (liabilities)/assets
(1,594,502)
925,713
Capital and reserves
Called up share capital
21
100
100
Profit and loss reserves
(1,594,602)
925,613
Total equity
(1,594,502)
925,713
The financial statements were approved by the board of directors and authorised for issue on 19 June 2025 and are signed on its behalf by:
M J Cullen
Director
Company registration number 06009924 (England and Wales)
WINCH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
1
Accounting policies
Company information

Winch Solutions Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 17-18, Bradley Hall Trading Estate, Bradley Lane, Standish, Wigan, WN6 0XQ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. 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 BPE Holdings Limited. These consolidated financial statements are available from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.

1.2
Going concern

At the start of the year the company’s working capital requirements were provided through HSBC short term trade loans secured against the stock to which they related and loans from group companies. true

In the first quarter of the year there was a reduction in sales resulting in a cash shortfall.

In June 2023 and November 2023 the above trade loans could not be settled as the amounts were falling due.

In June 2023 the bank extended the repayment dates by 150 days and in November 2023 further extensions were applied to the trade loans repayment periods, which were specific to each loan.

In January 2024 the business was not in a position to settle the trade loans, despite the extensions granted by HSBC.

On 23 September 2024 the company agreed a new medium term repayment loan facility with HSBC of £5,600,000 to 30 April 2027 at an interest rate of 3.9% per annum above the Bank of England base rate.

WINCH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 10 -

In order to prepare the company’s financial statements on a going concern basis, the directors have considered detailed financial projections covering a period of at least 12 months from the date of approval of the company’s financial statements (the “Assessment Period”). These projections are based on the group’s business plan for the year ended 30 April 2026 as well as the group’s anticipated activity for the period to May 2026. The basis for the financial projections includes assumptions relating to exiting the European market directly and instead supplying the market via a distributor. The directors have considered these financial projections in conjunction with the company’s available loan facilities described above.

The directors have also considered the financial impact of the other business risks identified in the strategic report and built these into their sensitivity analysis performed on these forecasts. The overall impact that has been modelled is a plausible reduction in sales of 10%.

The sensitised forecasts indicate that the company and group can continue to operate within its new loan facilities and remain compliant with associated loan covenants during the Assessment Period.

The directors have also received confirmation that the group’s continuing subsidiaries intend to provide mutual financial support to the company during the Assessment Period to enable it to meet its liabilities as they fall due. The directors have also received confirmation that the continuing subsidiaries will not call upon the company to repay, during the Assessment Period, the loans they have advanced to the company if this would conflict with the above undertaking.

After considering the forecast information, new facilities and confirmation of mutual support, the directors have concluded that there is 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 these financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for power products and winches provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of an unincorporated business in 2007, 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 which was 10 years. Goodwill has been fully amortised.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Software
10% per annum straight line basis
WINCH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 11 -
1.6
Tangible fixed assets

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

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Plant and equipment
25% per annum on reducing balance basis
Fixtures and fittings
25% per annum on reducing balance basis
Computers
25% per annum on reducing balance basis
Motor vehicles
25% per annum on reducing balance basis

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.

1.7
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.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

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.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

WINCH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -
1.10
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.

WINCH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
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.

1.11
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.

1.12
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.13
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.

WINCH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
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.

1.14
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

WINCH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
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 consider the critical judgements made in preparing the financial statements to be in relation to their assessment of the recoverability of investment balances and related party loans, including the estimation of any required provisions and their assessment of going concern in note 1.2.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Power products and winches
4,891,267
12,679,857
2024
2023
£
£
Turnover analysed by geographical market
UK
3,921,363
6,061,973
Europe
803,318
5,424,539
Canada
-
1,064,445
Rest of the World
166,586
128,900
4,891,267
12,679,857
4
Exceptional item
Expenditure
Exceptional costs
2,109,978
-

Exceptional costs relate the provision against recoverability of debtor balances with fellow subsidiary undertakings of £2,109,978.

WINCH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
5
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(164,810)
253,843
Forward currency contract losses/(gains)
47,414
(138,411)
Fees payable to the company's auditor for the audit of the company's financial statements
17,500
17,000
Depreciation of owned tangible fixed assets
40,160
51,609
Provision for contractual damages included in purchases (see note 18)
-
253,639
Amortisation of intangible assets
8,894
10,323
Operating lease charges
59,989
91,529
6
Employees

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

2024
2023
Number
Number
Administration
22
19
Production
7
7
Sales
2
3
Total
31
29

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
466,885
1,053,017
Social security costs
72,308
123,206
Pension costs
40,634
53,316
579,827
1,229,539
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
225,151
209,930
Company pension contributions to defined contribution schemes
8,481
31,577
233,632
241,507

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2023 - 4).

WINCH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
7
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
162,023
137,805
Company pension contributions to defined contribution schemes
1,321
1,321
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
76,386
143,439
Other interest on financial liabilities
-
0
9,000
76,386
152,439
9
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
14,185
(53,801)
Adjustment in respect of prior periods
-
0
18,072
Total deferred tax
14,185
(35,729)

The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(2,310,759)
(229,092)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
(577,690)
(44,650)
Tax effect of expenses that are not deductible in determining taxable profit
530,917
9,195
Adjustments in respect of prior years
-
0
18,072
Permanent capital allowances in excess of depreciation
-
0
(6,488)
Other permanent differences
10,485
-
0
Deferred tax not provided
50,473
-
0
Difference in corporation and deferred tax rates
-
0
(11,858)
Taxation charge/(credit) for the year
14,185
(35,729)
WINCH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
9
Taxation
(Continued)
- 18 -

A UK corporation tax rate of 25% was announced in the Chancellor’s Budget of 3 March 2021 and applied from 1 April 2023. Deferred tax has been calculated at this rate.

10
Dividends
2024
2023
£
£
Interim paid
195,271
502,837
11
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 May 2023
211,399
102,931
314,330
Additions
-
0
1,310
1,310
At 30 April 2024
211,399
104,241
315,640
Amortisation and impairment
At 1 May 2023
211,399
18,049
229,448
Amortisation charged for the year
-
0
8,894
8,894
At 30 April 2024
211,399
26,943
238,342
Carrying amount
At 30 April 2024
-
0
77,298
77,298
At 30 April 2023
-
0
84,882
84,882

The amortisation of intangible assets is included within administration expenses.

WINCH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
12
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
109,986
160,161
119,051
13,200
402,398
Additions
-
0
1,712
3,805
-
0
5,517
At 30 April 2024
109,986
161,873
122,856
13,200
407,915
Depreciation and impairment
At 1 May 2023
67,672
107,350
59,056
13,200
247,278
Depreciation charged in the year
10,579
13,631
15,950
-
0
40,160
At 30 April 2024
78,251
120,981
75,006
13,200
287,438
Carrying amount
At 30 April 2024
31,735
40,892
47,850
-
0
120,477
At 30 April 2023
42,314
52,811
59,995
-
0
155,120
13
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Forward currency contracts measured at fair value through profit or loss
-
138,411
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
47,414
-
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
2,315,254
2,767,766
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
664,473
1,381,916
Amounts owed by group undertakings
794,078
3,934,290
Derivative - forward currency contracts
-
138,411
Other debtors
41,448
142,195
Prepayments and accrued income
3,134,900
1,062,074
4,634,899
6,658,886
WINCH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
15
Debtors
(Continued)
- 20 -
2024
2023
Amounts falling due after more than one year:
£
£
Corporation tax recoverable
12,758
-
0
Deferred tax asset (note 19)
-
0
14,185
12,758
14,185
Total debtors
4,647,657
6,673,071
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
5,626,035
6,753,758
Trade creditors
1,181,750
558,325
Amounts owed to group undertakings
1,056,813
396,319
Corporation tax
12,758
-
0
Other taxation and social security
704,453
217,983
Derivative financial instruments
47,414
-
0
Other creditors
36,886
30,180
Accruals and deferred income
259,084
1,599,574
8,925,193
9,556,139
17
Loans and overdrafts
2024
2023
£
£
Bank loans
5,626,035
6,753,758
Payable within one year
5,626,035
6,753,758

The bank loans are short term trade loans, secured against the group stock. Interest is charged on the trade loans at 3.9% above bank base rate.

18
Provisions for liabilities
2024
2023
£
£
Other provision
-
253,639

Other provisions related to a claim for contractual damages, of which £253,639 was utilised in year.

WINCH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
19
Deferred taxation

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

Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
(46,786)
(57,296)
Tax losses
49,324
70,837
Short term timing differences
(2,538)
644
-
14,185
2024
Movements in the year:
£
Asset at 1 May 2023
(14,185)
Charge to profit or loss
14,185
Liability at 30 April 2024
-

 

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
40,634
53,316

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 year-end accrued pension contributions amounted to £5,403 (2023: £4,915).

 

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
55
55
55
55
B Ordinary shares of £1 each
30
30
30
30
C Ordinary shares of £1 each
10
10
10
10
D Ordinary shares of £1 each
5
5
5
5
100
100
100
100
WINCH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
21
Share capital
(Continued)
- 22 -

The respective rights of each class of share is documented within the Articles of Association.

22
Financial commitments, guarantees and contingent liabilities

There is a cross guarantee between Winch Solutions Limited, BPE Retail Limited and BPE Holdings Limited in favour of the group's bankers. The maximum potential liability as at 30 April 2024 was £5,626,035 (2023: £6,753,758).

23
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
£
£
Within one year
76,594
88,940
Between two and five years
251,256
299,233
In over five years
-
0
29,166
327,850
417,339
24
Related party transactions

During the year loan interest amounting to £Nil (2023: £9,000) was paid to the directors.

25
Directors' transactions

Advances or credits have been granted by the company to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
Director
-
-
37,800
37,800
-
37,800
37,800

Amounts owed from directors are unsecured, interest free, and repayable on demand.

26
Ultimate controlling party

The ultimate parent company is BPE Holdings Limited, a company registered in England and Wales. The parent company is preparing consolidated group accounts, which include those of Winch Solutions Limited. Copies of the consolidated financial statements of BPE Holdings Limited can be obtained from Companies House, Crown Way, Maindy, Cardiff CF14 3UZ.

The ultimate controlling party is considered to be Mr J Bimson by virtue of his majority shareholding in the ultimate parent company.

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