Company Registration No. 03671447 (England and Wales)
WERNICK GROUP (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
WERNICK GROUP (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
D M Wernick
J J Jaggon
J S Wernick
Secretary
J J Jaggon
Company number
03671447
Registered office
Molineux House
Russell Gardens
Wickford
Essex
SS11 8QG
Auditor
Rickard Luckin Limited
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
Solicitors
Burness Paull LLP
120 Bothwell Street
Glasgow
G2 7JL
WERNICK GROUP (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 37
WERNICK GROUP (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present the strategic report for the year ended 31 December 2024.
S172 statement
The Board of Directors, in line with their duties under s172 of the Companies Act 2006, act in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its stakeholders, and in doing so have regard to a range of matters when making decisions for the long term. Through an open and transparent dialogue with our key stakeholders, the Board have been able to develop a clear understanding of their needs, assess their perspectives and monitor their impact on our strategic ambition and culture. At all times the principle that guides the Board’s decision making is that the outcome of each decision supports the delivery of the Company’s strategy and its long-term success.
As part of the decision-making process, the Board considers the potential impact of decisions on relevant stakeholders whilst also having regard to a number of broader factors, including the impact of the Company’s operations on the community and environment, responsible business practices and the likely consequences of decisions in the long term. Ahead of all Board meetings, the Directors are supplied with detailed papers which highlight relevant stakeholder considerations and other factors considered relevant to the matter under consideration. The Board’s significant experience and diverse set of skills ensure that debate is well-informed, challenging and constructive. The Board monitors any follow up actions and receives regular updates on the outcomes of decisions made, including any impact on stakeholders. The Company’s key stakeholders are our employees, customers, distributors and suppliers, and sub-contractors.
Section 172 (1) of the Companies Act 2006 requires that businesses and their Directors report on their duty to promote the success of the company with regards the following matters:
a. Long-term sustainability
The Company is focused on ensuring our customers and clients have the highest quality products and receive first class customer service. We are continually looking at ways to enhance our overall product range by means of innovation and the incorporation of new processes and procedures. As a 4th generation family-owned business, and while ongoing success is important, it is the long-term security and success which is of paramount importance for future generations.
b. Interests of the Company’s employees
The Directors value our employees and their commitment and we consider their health, safety, and wellbeing to be fundamental to our success. Communication with our staff is important and we have structures and mechanisms in place to facilitate this so that our staff are kept fully informed on all relevant developments.
c. Interests of other stakeholders
Customer service is one of our top priorities and understanding the needs of our customers is at the forefront of strategy. We provide our customers with a quality service for every product we supply.
As a business of some 90 years, and with the Company’s long-term approach, the relationships we foster throughout our supply chain have always been of vital importance. Many of the relationships we have with key suppliers have spanned generations of the same families. We work with like-minded businesses who share our core values and this in turn enables us to maintain the high quality in our products and services.
d. Impact on community and environment
We are always looking to promote community engagement amongst our workforce and our customers and suppliers. Over the years the Company has supported numerous charities. In addition, we offer a charity fund-matching scheme for all employees who take part in raising money for charity.
We understand that climate change is an urgent global crisis. Where possible our designs utilise materials to reduce waste before manufacturing has begun. The majority of materials employed can all be recycled.
Our buildings are produced in a controlled factory environment, allowing far greater control of waste. Different materials can be segregated easily to allow for safe and efficient recycling or disposal; ensuring the amount that goes to landfill is negligible. Factory production also has the benefit of being able to source all labour locally, reducing the need for travel and associated costs to the environment. Modular units can constitute permanent or temporary buildings and are also able to be re-sited if necessary, allowing them to be reused for a variety of purposes. Coupled with a long lifespan, this means a correctly maintained building can retain its utility for many years.
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WERNICK GROUP (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
e. High standards of business conduct
The Company is held in regard locally and nationally. Our reputation is of paramount importance and the Directors, and our staff work hard to maintain this. The Company operates to high standards of business behaviour and is committed to acting ethically and with integrity across all business relationships. It is the view of the Directors that they continue to run the business in the best long-term interest of all relevant stakeholders.
Fair review of the business
The Wernick Group of Companies is Britain’s largest independent hirer and manufacturer of modular and portable buildings and specialist provider of generators and off-grid power solutions. The group offers a wide range of sustainable building solutions for both the public and private sectors using a variety of off-site construction methods.
During the year the Group continued to face an uncertain geopolitical and macroeconomic environment. Despite such economic headwinds, the Board of Directors are pleased to report a satisfactory performance and year-end financial position with turnover and pre-tax profitability remaining stable at £213.3m (2023 - £214.4m) and £35.7m (2023 - £35.8m) respectively. Driven by our philosophy of re-investment, Shareholders Funds increased to £229.0m (2023 - £203.2m).
The Group maintained its programme of investment, which in 2024 reached a record amount of £96m (2023 - £61m). This included the Group’s acquisition of Rawley Plant Ltd, increasing the Group's presence in the portable and modular buildings market and widening our group offering to our SME and small trader business customer base.
Principal risks and uncertainties
The Group operates a centralised treasury function which is responsible for managing the liquidity risk, interest risk and credit risk associated with the Group's activities. The main source of funding of the Group's operations are through bank overdrafts and loans. In addition, the Group has various other financial assets and liabilities such as trade debtors and creditors arising directly from its operations. In accordance with the Group's treasury policy, derivative instruments are not entered into for speculative purposes. The main risks arising from the Group's financial instruments are liquidity risk, interest rate risk and credit risk. The directors review and agree policies for managing each of these risks and they are summarised below.
Liquidity risk
The Group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense whilst ensuring the Group has sufficient liquid resources to meet the operating need of the business.
Interest rate risk
The Group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on its overdraft.
Credit risk
Investments of cash surpluses and borrowings are made through banks and companies approved by the board. All customers who wish to trade on credit terms are subject to verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debt when necessary.
Other performance indicators
Turnover decreased by 0.5% (2023 - 14.2% increase)
Gross profit margin 43.5% (2023 - 39.2%)
Operating profit margin 18.4% (2023 - 17.8%)
Net profit margin 16.7% (2023 - 16.7%)
Debtor days 59 (2023 - 69)
Solvency ratio 0.67 (2023 - 0.74)
Shareholder's funds increase by 12.8% (2023 - 20.9%)
Group borrowings £102.4m (2023 - £69.5m)
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WERNICK GROUP (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
J J Jaggon
Director
6 August 2025
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WERNICK GROUP (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the group is the construction, refurbishment, sale and provision of modular buildings for hire, and the provision of generators for hire.
Results and dividends
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £741,598. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
D M Wernick
J J Jaggon
J S Wernick
Disabled persons
The company gives full consideration to applications for employment from disabled persons where the candidate's particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion. Where existing employees become disabled, it is the company's policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training to achieve this aim.
Employee involvement
The company operates a framework for employee information and consultation. During the year under review the policy of providing employees with information about the company has continued through a variety of methods to include: the periodic production of our newsletter; the use of our extensive intranet; our website; and various social media platforms we are active upon. Our employees are encouraged to present their suggestions and views on the company's performance and processes. Regular meetings are held between management and employees to allow a free flow of information and ideas. Where a suggestion or idea is implemented, which adds value to the company, the employee is rewarded accordingly. Despite being part of the largest independently owned portable accommodation provider, modular building manufacturer and power generator specialist in Britain, the Directors have retained the welcoming and stimulating work environment that can only come from being in a paternalistic family business.
Auditor
In accordance with the company's articles, a resolution proposing that Rickard Luckin Limited be reappointed as auditor of the group will be put at a General Meeting.
Energy and carbon report
The Group has gathered data regarding scope one and scope two carbon emissions (as defined by the GHG Protocol) for the financial year spanning 1st January 2024 to 31st December 2024 from its UK operations for inclusion in Company Reporting (2021) as defined by the requirements of the Streamlined Energy and Carbon Reporting (SECR) legislation.
Energy consumption used to calculate emissions (kWh) - 15,352,876 (2023: 15,039,428); 2.08% increase.
Emissions from scope one fuels (tCO2e) - 2,698 (2023: 2,738); 1.46% decrease.
Emissions from scope two purchased electricity (tCO2e) - 727 (2023: 721); 0.83% increase.
Total gross tCO2e - 3,425 (2023: 3,459); 0.98% increase.
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WERNICK GROUP (HOLDINGS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Intensity measurement
The intensity rate for the period is calculated at 0.014 tCO2e per £100,000 of revenue from the Group operations, a decrease of 8% on the previous period.
Measures taken to improve energy efficiency
With our new Sustainability Manager on board this year, measures put in place for energy-saving initiatives continue to lead the company towards the carbon net zero goal in 2040, the details of which are published on our website and is available at https://www.wernick.co.uk/about/sustainability/carbon-zero-2040/
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
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. It has done so in respect of risks and business review.
On behalf of the board
J J Jaggon
Director
6 August 2025
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WERNICK GROUP (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WERNICK GROUP (HOLDINGS) LIMITED
Opinion
We have audited the financial statements of Wernick Group (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 group and parent 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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the 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.
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WERNICK GROUP (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WERNICK GROUP (HOLDINGS) LIMITED
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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
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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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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, including 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.
Capability of the audit in detecting irregularity, including fraud
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; through verbal and written communications with those charged with governance and other management; through communications with other group auditors, through communications with legal counsel, and via inspection of the group’s regulatory and legal correspondence.
We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.
We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the group.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the group is subject to laws and regulations that directly affect the financial statements, including: the company’s constitution; relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
WERNICK GROUP (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WERNICK GROUP (HOLDINGS) LIMITED
Secondly the group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation; trade legislation; legislation relating to the commercial property rental environment; data protection legislation; and anti-bribery and anti-corruption legislation.
ISAs (UK) limit the required procedures to identify non-compliance with these laws and regulations and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance with laws and regulations that could have a material impact on the financial statements.
In relation to fraud, we performed the following specific procedures in addition to those already noted:
Challenging assumptions made by management in its significant accounting estimates in particular: depreciation, accruals and provisions for costs in contracts;
Identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account combinations, journal entries crediting cash or any revenue account, journal entries posted by senior management and consolidation journals;
Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud;
Ensuring that testing undertaken on both the performance statement, and the Balance Sheet includes a number of items selected on a random basis;
These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.
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 ISAs (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of 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.
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WERNICK GROUP (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WERNICK GROUP (HOLDINGS) LIMITED
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.
Michael Breame
For and on behalf of Rickard Luckin Limited
8 August 2025
Chartered Accountants
Statutory Auditor
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
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WERNICK GROUP (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
2024
2023
Notes
£000
£000
Turnover
3
213,265
214,406
Cost of sales
(120,457)
(130,430)
Gross profit
92,808
83,976
Distribution costs
(2,016)
(2,063)
Administrative expenses
(52,384)
(44,577)
Other operating income
932
782
Operating profit
4
39,340
38,118
Interest receivable and similar income
108
261
Interest payable and similar expenses
9
(3,753)
(2,593)
Profit before taxation
35,695
35,786
Tax on profit
10
(9,168)
(8,216)
Profit for the financial year
26,527
27,570
Other comprehensive income
Revaluation of tangible fixed assets
12,156
Actuarial gain/(loss) on defined benefit pension schemes
221
(9)
Tax relating to other comprehensive income
(2,029)
Total comprehensive income for the year
26,748
37,688
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
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WERNICK GROUP (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
2024
2023
Notes
£000
£000
£000
£000
Fixed assets
Goodwill
11
8,122
7,673
Tangible assets
12
332,434
273,906
Investments
13
35
50
340,591
281,629
Current assets
Stocks
15
8,611
6,558
Debtors
16
55,538
54,500
Cash at bank and in hand
11,752
14,788
75,901
75,846
Creditors: amounts falling due within one year
17
(113,940)
(103,691)
Net current liabilities
(38,039)
(27,845)
Total assets less current liabilities
302,552
253,784
Creditors: amounts falling due after more than one year
18
(56,176)
(35,557)
Provisions for liabilities
Deferred tax liability
21
17,190
15,047
(17,190)
(15,047)
Net assets
229,186
203,180
Capital and reserves
Called up share capital
25
18
18
Share premium account
8,361
8,361
Revaluation reserve
21,413
21,413
Capital redemption reserve
15
15
Other reserves
16
16
Profit and loss reserves
199,363
173,357
Total equity
229,186
203,180
The financial statements were approved by the board of directors and authorised for issue on 6 August 2025 and are signed on its behalf by:
06 August 2025
D M Wernick
Director
Company registration number 03671447 (England and Wales)
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WERNICK GROUP (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
2024
2023
Notes
£000
£000
£000
£000
Fixed assets
Investments
13
5,972
5,972
Current assets
Debtors
16
-
3,052
Creditors: amounts falling due within one year
17
(3,940)
(3,750)
Net current liabilities
(3,940)
(698)
Total assets less current liabilities
2,032
5,274
Creditors: amounts falling due after more than one year
18
(2,500)
Net assets
2,032
2,774
Capital and reserves
Called up share capital
25
18
18
Other reserves
16
16
Capital redemption reserve
15
15
Profit and loss reserves
1,983
2,725
Total equity
2,032
2,774
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2023 - £0 profit).
The financial statements were approved by the board of directors and authorised for issue on 6 August 2025 and are signed on its behalf by:
06 August 2025
D M Wernick
Director
Company Registration No. 03671447
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WERNICK GROUP (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£000
£000
£000
£000
£000
£000
£000
Balance at 1 January 2023
18
8,361
11,286
15
16
148,335
168,031
Year ended 31 December 2023:
Profit for the year
-
-
-
-
-
27,570
27,570
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
12,156
-
-
-
12,156
Actuarial gains on defined benefit plans
-
-
-
-
-
(9)
(9)
Tax relating to other comprehensive income
-
-
-
-
(2,029)
(2,029)
Total comprehensive income
-
-
12,156
-
-
25,532
37,688
Dividends
8
-
-
-
-
-
(2,539)
(2,539)
Transfers
-
-
(2,029)
-
-
2,029
-
Balance at 31 December 2023
18
8,361
21,413
15
16
173,357
203,180
Year ended 31 December 2024:
Profit for the year
-
-
-
-
-
26,527
26,527
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
-
-
221
221
Total comprehensive income
-
-
-
-
-
26,748
26,748
Dividends
8
-
-
-
-
-
(742)
(742)
Balance at 31 December 2024
18
8,361
21,413
15
16
199,363
229,186
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WERNICK GROUP (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
Share capital
Other reserves
Capital redemption reserve
Profit and loss reserves
Total
Notes
£000
£000
£000
£000
£000
Balance at 1 January 2023
18
16
15
5,264
5,313
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
-
Dividends
8
-
-
-
(2,539)
(2,539)
Balance at 31 December 2023
18
16
15
2,725
2,774
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
-
-
-
Dividends
8
-
-
-
(742)
(742)
Balance at 31 December 2024
18
16
15
1,983
2,032
- 14 -
WERNICK GROUP (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
2024
2023
Notes
£000
£000
£000
£000
Cash flows from operating activities
Cash generated from operations
27
69,624
68,753
Interest paid
(3,753)
(2,593)
Income taxes paid
(8,314)
(9,960)
Net cash inflow from operating activities
57,557
56,200
Investing activities
Purchase of intangible assets
(3,515)
(2,863)
Purchase of tangible fixed assets
(95,694)
(60,638)
Proceeds from disposal of tangible fixed assets
6,369
4,847
Interest received
105
258
Dividends received
3
3
Net cash used in investing activities
(92,732)
(58,393)
Financing activities
Proceeds from new bank loans and overdrafts
10,000
-
Repayment of bank loans
(5,142)
(1,988)
Payment of finance leases obligations/new finance leases
28,023
11,738
Dividends paid to equity shareholders
(742)
(2,539)
Net cash generated from financing activities
32,139
7,211
Net (decrease)/increase in cash and cash equivalents
(3,036)
5,018
Cash and cash equivalents at beginning of year
14,788
9,771
Cash and cash equivalents at end of year
11,752
14,788
- 15 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
Company information
Wernick Group (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Molineux House, Russell Gardens, Wickford, Essex, SS11 8QG.
The group consists of Wernick Group (Holdings) Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The 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:
- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures.
1.2
Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.
The consolidated financial statements incorporate those of Wernick Group (Holdings) Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).
All financial statements are made up to 31 December 2024. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is shown as the total amount of work having been done in that period.
- 16 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
Revenue from hire contracts is recognised by reference to the respective hire period agreed and is recognised on a pro-rata basis. Associated charges linked to the hire of units are recognised as income once those services have been fulfilled.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business 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 is amortised on a systematic basis over its expected life, which is 5 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.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Land
Not depreciated
Freehold buildings
2%-10% straight line
Buildings for hire
8%-25% straight line
Fixtures and fittings
10% straight line and 15%-20% reducing balance
Motor vehicles
25% reducing balance
Leasehold buildings
straight line over the term of the lease
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.7
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Impairment of fixed assets
At each reporting period end date, the group 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.
- 17 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
1.9
Stocks
- 18 -
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
1.11
Cash at bank and in hand
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.
1.12
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
- 19 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.15
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.16
Retirement benefits
Defined Benefit Pension Plan
The group operates a defined benefit pension scheme and the pension charge is based on a valuation for the purposes of accounting under FRS 102 updated each year by a qualified actuary.
Scheme assets are measured at fair values. Scheme liabilities are measured on an actuarial basis using the projected unit method and are discounted at appropriate high quality corporate bond rates. The net surplus or deficit, adjusted for deferred tax, is presented separately from other assets on the Balance Sheet. A net surplus is recognised only to the extent that it is recoverable by the group.
The current service cost and costs from settlements and curtailments are charged against operating surplus. Past service costs are spread over the period until the benefit increases vest. Interest on the scheme liabilities and the expected return on the scheme assets are included in other finance expense. Actuarial gains and losses are reported in the Statement of Comprehensive Income.
Defined Contribution Pension Plan
The group also operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the group. The pension costs charged to the financial statements represent the contributions payable by the group during the year.
- 20 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
1.17
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.
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
Provisions for completion costs on contracts
The group manufactures modular buildings, which are viewed as long term contracts. Due to the nature of the contracts, it is necessary to consider the stage of completion and cost to complete on all open contracts. The group management makes an estimate of the costs required to complete the contracts and reviews the estimated profitability of each contract and makes necessary provision to reflect current estimates.
Defined benefit pension scheme
The group has obligations to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, inflation, wages and pension increases, asset valuations and the real and nominal rates of interest used. Management make certain judgements in arriving at the assumptions provided to the actuaries, which are then used in determining the net pension asset or obligation in the balance sheet. The assumptions reflect historical experience and current trends.
Goodwill amortisation period
Intangible fixed assets are written down over their useful economic life. The directors estimate the lives of these assets and select suitable accounting policies to make a provision for amortisation using their best estimates of the use of these assets on a class by class basis.
- 21 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Turnover and other revenue
The turnover and profit on ordinary activities before taxation are attributable to the principal activities of the group which are the manufacture for either sale or hire of timber and steel framed system buildings and cabins for central and local government departments, industry and commerce. In conjunction with the above the group provides a full range of associated construction work and power units in relation to the aforementioned buildings.
The turnover of the group for the year has been derived from its principal activities wholly undertaken in the United Kingdom.
4
Operating profit
2024
2023
£000
£000
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
27,365
20,644
Depreciation of tangible fixed assets held under finance leases
7,015
5,030
Profit on disposal of tangible fixed assets
(236)
(9)
Amortisation of intangible assets
1,488
1,088
Impairment of intangible assets
27
-
Research & development costs
-
254
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
143
128
For other services
Other taxation services
20
20
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production
523
512
-
-
Management, office and administration
311
333
-
-
Sales and distribution
39
34
-
-
Total
873
879
- 22 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Employees
(Continued)
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Wages and salaries
37,419
32,477
Social security costs
3,436
2,772
-
-
Pension costs
1,356
1,311
42,211
36,560
7
Directors' remuneration
2024
2023
£000
£000
Remuneration for qualifying services
955
1,062
Amounts receivable under long term incentive schemes
16
15
971
1,077
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£000
£000
Remuneration for qualifying services
513
432
Company pension contributions to defined contribution schemes
9
9
8
Dividends
2024
2023
Recognised as distributions to equity holders:
£000
£000
Final paid
742
2,539
- 23 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Interest payable and similar expenses
2024
2023
£000
£000
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
440
607
Interest on finance leases and hire purchase contracts
3,312
1,986
3,752
2,593
Other finance costs:
Interest on the net defined benefit liability
1
-
Total finance costs
3,753
2,593
10
Taxation
2024
2023
£000
£000
Current tax
UK corporation tax on profits for the current period
7,649
7,822
Adjustments in respect of prior periods
20
249
Total current tax
7,669
8,071
Deferred tax
Origination and reversal of timing differences
1,519
145
Other adjustments
(20)
Total deferred tax
1,499
145
Total tax charge
9,168
8,216
The effective rate of tax for the period ended 31 December 2024 is 25% (2023: 23.5%).
- 24 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Taxation
(Continued)
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
35,695
35,786
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
8,924
8,410
Tax effect of expenses that are not deductible in determining taxable profit
671
497
Tax effect of income not taxable in determining taxable profit
(104)
-
Change in unrecognised deferred tax assets
170
(921)
Adjustments in respect of prior years
20
249
Effect of change in corporation tax rate
37
(259)
Depreciation on assets not qualifying for tax allowances
69
69
Other non-reversing timing differences
26
Deferred tax adjustments in respect of prior years
(607)
145
Pension fund movements
(12)
-
Taxation charge
9,168
8,216
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£000
£000
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
-
2,029
- 25 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Intangible fixed assets
Group
Goodwill
£000
Cost
At 1 January 2024
10,350
Additions
1,964
At 31 December 2024
12,314
Amortisation and impairment
At 1 January 2024
2,677
Amortisation charged for the year
1,488
Impairment losses
27
At 31 December 2024
4,192
Carrying amount
At 31 December 2024
8,122
At 31 December 2023
7,673
On 30 April 2024 the group acquired 100 percent of the issued capital of a company not previously part of the group. Consideration was in the form of cash and deferred payments, and the goodwill included above represents anticipated future profitability from the synergies arising from the acquisition. A further breakdown of asset classes acquired is not included on the basis that this information is not material. The Directors have not disclosed the acquisition cost as this is considered to be commercially sensitive information.
- 26 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
12
Tangible fixed assets
Group
Land
Freehold buildings
Buildings for hire
Fixtures and fittings
Motor vehicles
Plant & machinery
Total
£000
£000
£000
£000
£000
£000
£000
Cost or valuation
At 1 January 2024
102,260
189
267,645
5,588
8,133
3,470
387,285
Additions
15,257
-
67,562
1,511
4,070
7,294
95,694
Disposals
(282)
-
(15,626)
(140)
(2,398)
(844)
(19,290)
Transfers
-
-
3,948
(270)
(43)
-
3,635
At 31 December 2024
117,235
189
323,529
6,689
9,762
9,920
467,424
Depreciation and impairment
At 1 January 2024
2,797
69
102,381
3,467
3,132
1,533
113,379
Depreciation charged in the year
483
12
27,563
471
1,288
4,563
34,380
Eliminated in respect of disposals
(17)
-
(10,863)
(101)
(537)
(1,639)
(13,157)
Transfers
-
-
82
-
206
-
288
At 31 December 2024
3,263
81
119,163
3,837
4,089
4,457
134,890
Carrying amount
At 31 December 2024
113,972
108
204,366
2,852
5,673
5,463
332,434
At 31 December 2023
99,463
120
165,264
2,121
5,001
1,937
273,906
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.
- 27 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Buildings for hire
72,681
111,144
Freehold land and buildings were revalued at 31 December 2023 by 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 have considered the valuation as at 31 December 2024 and believe it continues to represent a materially correct position.
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately £73,642k (2023 - £58,601k).
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£000
£000
£000
£000
Investments in subsidiaries
14
-
5,972
5,972
Listed investments
35
50
35
50
5,972
5,972
Listed investments included above:
Listed investments carrying amount
35
50
-
-
- 28 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
13
Fixed asset investments
(Continued)
Movements in fixed asset investments
Group
Listed investments
£000
Cost or valuation
At 1 January 2024
50
Valuation changes
(15)
At 31 December 2024
35
Impairment
At 1 January 2024
-
At 31 December 2024
-
Carrying amount
At 31 December 2024
35
At 31 December 2023
50
Movements in fixed asset investments
Company
Shares in group undertakings
£000
Cost or valuation
At 1 January 2024 and 31 December 2024
5,972
Carrying amount
At 31 December 2024
5,972
At 31 December 2023
5,972
- 29 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
S Wernick & Sons (Holdings) Ltd
UK
Holding company
Ordinary
100.00
0
Wernick Buildings Ltd
UK
The sale of modular buildings
Ordinary
0
100.00
Wernick Construction Ltd
UK
The construction of modular buildings
Ordinary
0
100.00
Wernick Event Hire Ltd
UK
The provision of portable buildings and associated events equipment
Ordinary
0
100.00
Wernick Hire Ltd
UK
The provision of modular buildings
Ordinary
0
100.00
Wernick Refurbished Buildings Ltd
UK
The refurbishment of modular buildings
Ordinary
0
100.00
Wernick Power Solutions Ltd
UK
The provision of generators for hire
Ordinary
0
100.00
Meebles Ltd
UK
Dormant
Ordinary
0
100.00
Secometric Ltd
UK
Dormant
Ordinary
0
100.00
AVD Holdings Limited
UK
Dormant
Ordinary
0
100.00
Wernick AVDanzer Limited
UK
The manufacture and sale of modular buildings
Ordinary
0
100.00
Specurate Limited
UK
Dormant
Ordinary
0
100.00
Portable Building Sales Ltd
UK
Dormant
Ordinary
0
100.00
Anderson Engineering (Generator Specialists) Ltd
UK
Dormant
Ordinary
0
100.00
Rawley Plant
UK
The provision of modular buildings
Ordinary
0
100.00
The aggregate capital and reserves and the profit for the year of the subsidiaries noted above was as follows:
Name of undertaking
Profit and OCI
Capital and Reserves
£000
£000
S Wernick & Sons (Holdings) Ltd
4,624
54,313
Wernick Buildings Ltd
1,899
20,145
Wernick Construction Ltd
1,383
11,121
Wernick Event Hire Ltd
732
6,590
Wernick Hire Ltd
13,446
121,079
Wernick Refurbished Buildings Ltd
2,442
12,845
Wernick Power Solutions Ltd
2,350
5,868
Wernick AVDanzer Limited
261
11,317
Rawley Plant
459
3,665
- 30 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
15
Stocks
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Raw materials and consumables
3,095
3,681
-
-
Work in progress
1,569
1,001
-
-
Finished goods and goods for resale
3,947
1,876
8,611
6,558
-
-
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£000
£000
£000
£000
Trade debtors
34,467
40,753
-
Gross amounts owed by contract customers
7,734
5,940
Corporation tax recoverable
1,431
1,713
Amounts owed by group undertakings
-
-
-
3,052
Other debtors
2,082
997
Prepayments and accrued income
9,814
5,087
55,528
54,490
-
3,052
Amounts falling due after more than one year:
Deferred tax asset (note 21)
10
10
Total debtors
55,538
54,500
-
3,052
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£000
£000
£000
£000
Bank loans and overdrafts
19
4,122
4,372
2,500
3,750
Obligations under finance leases
20
42,285
29,774
Trade creditors
36,246
37,709
Amounts owed to group undertakings
-
-
1,440
Corporation tax payable
-
1,573
Other taxation and social security
3,118
5,041
-
-
Other creditors
8,813
9,888
Accruals and deferred income
19,356
15,334
113,940
103,691
3,940
3,750
- 31 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£000
£000
£000
£000
Bank loans and overdrafts
19
8,748
3,640
2,500
Obligations under finance leases
20
47,241
31,729
Other creditors
187
188
56,176
35,557
2,500
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Bank loans
12,870
8,012
2,500
6,250
Payable within one year
4,122
4,372
2,500
3,750
Payable after one year
8,748
3,640
2,500
The bank loans are secured by legal charges over the group's freehold properties and unlimited composite cross guarantees for all advances in respect of companies within the Wernick Group.
Obligations under finance leases and hire purchase agreements are secured by the related assets.
20
Hire purchase and finance lease obligations
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Future minimum lease payments due under hire purchase arrangements:
Within one year
42,285
29,774
In two to five years
57,504
38,388
99,789
68,162
-
-
Less: future finance charges
(10,263)
(6,659)
89,526
61,503
- 32 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£000
£000
£000
£000
Accelerated capital allowances
13,968
11,219
10
10
Revaluations
3,222
3,828
-
-
17,190
15,047
10
10
The company has no deferred tax assets or liabilities.
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
1,081
827
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Defined benefit scheme
The group operates a defined benefit pension scheme.
Wernick Buildings Limited operates a pension scheme on behalf of the Wernick Group providing benefits based on final pensionable pay. Payments are made on behalf of other group companies and then recharged. The assets of the scheme are held separately from those of the company, being invested with insurance companies. Contributions to the scheme are charged to the statement of comprehensive income so as to spread the cost of pensions over employees' working lives with the company. The contributions are determined by a professionally qualified actuary of Scottish Widows on the basis of triennial valuations using the projected unit method.
The costs, assets and liabilities of the defined benefit scheme are periodically assessed by actuarial valuation. The last full valuation was carried out in July 2021 by a qualified actuary. Valuations for the purpose of FRS 102 are updated each year at 31 December by a qualified actuary.
2024
2023
Key assumptions
%
%
Discount rate
5.5
4.8
Expected rate of increase of pensions in payment
2.8-3.1
2.8-3.1
Expected rate of salary increases
2.8
2.8
- 33 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
22
Retirement benefit schemes
(Continued)
Mortality assumptions
2024
2023
Assumed life expectations on retirement at age 65:
Years
Years
Retiring today
- Males
21
20.6
- Females
23.3
22.5
Retiring in 20 years
- Males
22.3
21.8
- Females
24.8
24.0
The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:
2024
2023
Group
£000
£000
Present value of defined benefit obligations
9,244
10,371
Fair value of plan assets
(13,354)
(13,274)
Deficit in scheme
(4,110)
(2,903)
Asset cap
4,110
2,903
Total liability recognised
-
-
Where any surplus in the scheme cannot be recovered through refunds from the scheme or reduction in
future cash-flows then uncertainty regarding that asset exists. Where this is the case the pension value is capped at £nil.
Group
2024
2023
Amounts recognised in the profit and loss account
£000
£000
Current service cost
25
47
Net interest on net defined benefit liability/(asset)
483
500
Other costs and income
(618)
(614)
Interest expense on effect of (asset ceiling)
139
114
Total costs
29
47
- 34 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
22
Retirement benefit schemes
(Continued)
Group
2024
2023
Amounts taken to other comprehensive income
£000
£000
Actual return on scheme assets
(245)
(619)
Actuarial changes related to obligations
(1,047)
124
Asset Cap
1,071
504
Total costs/(income)
(221)
9
Group
2024
Movements in the present value of defined benefit obligations
£000
Liabilities at 1 January 2024
10,370
Current service cost
25
Benefits paid
(600)
Contributions from scheme members
13
Actuarial gains and losses
(1,047)
Interest cost
483
At 31 December 2024
9,244
Group
2024
The defined benefit obligations arise from plans funded as follows:
£000
Wholly or partly funded obligations
9,244
Group
2024
Movements in the fair value of plan assets
£000
Fair value of assets at 1 January 2024
13,274
Return on plan assets (excluding amounts included in net interest)
245
Benefits paid
(600)
Contributions by the employer
(196)
Contributions by scheme members
13
Interest income
618
At 31 December 2024
13,354
- 35 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
22
Retirement benefit schemes
(Continued)
Fair value of plan assets at the reporting period end
Group
2024
2023
£000
£000
Equity instruments
7,287
6,905
Debt instruments
4,571
4,961
Cash
72
99
Other
1,424
1,309
13,354
13,274
23
Directors' transactions
Dividends totalling £741,598 (2023 - £2,539,303) were paid in the year in respect of shares held by the company's directors.
24
Related party transactions
The company has taken advantage of the exemption allowed under FRS102 from disclosing transactions with other members of the group headed by Wernick Group (Holdings) Limited.
25
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£000
£000
Issued and fully paid
Ordinary shares of £1 each
17,576
17,576
18
18
26
Analysis of changes in net debt - group
1 January 2024
Cash flows
31 December 2024
£000
£000
£000
Cash at bank and in hand
14,788
(3,036)
11,752
Borrowings excluding overdrafts
(8,012)
(4,858)
(12,870)
Obligations under finance leases
(61,503)
(28,023)
(89,526)
(54,727)
(35,917)
(90,644)
- 36 -
WERNICK GROUP (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
27
Cash generated from group operations
2024
2023
£000
£000
Profit after taxation
26,527
27,570
Adjustments for:
Taxation charged
9,168
8,216
Finance costs
3,753
2,593
Investment income
(108)
(262)
Gain on disposal of tangible fixed assets
(236)
(7)
Amortisation and impairment of intangible assets
1,488
1,088
Depreciation and impairment of tangible fixed assets
34,380
25,675
Pension scheme non-cash movement
221
(9)
Movements in working capital:
(Increase)/decrease in stocks
(2,053)
601
Decrease/(increase) in debtors
4,792
(4,198)
(Decrease)/increase in creditors
(12,062)
7,837
Increase/(decrease) in deferred income
3,754
(351)
Cash generated from operations
69,624
68,753
28
Analysis of changes in net debt - company
1 January 2024
Cash flows
31 December 2024
£000
£000
£000
Borrowings excluding overdrafts
(6,250)
3,750
(2,500)
29
Controlling party
The ultimate controlling party of the group throughout the current period was D M Wernick.
- 37 -
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