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Registered number: 00060209 STEPHEN WALTERS & SONS LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
STEPHEN WALTERS & SONS LIMITED COMPANY INFORMATION
Directors | D J Walters
| J D B Walters
| T L Goldsmith
| C D Yates
| D A Boreham
Company secretary | T L Goldsmith
Registered number | 00060209
Registered office | Sudbury Silk Mills
| Cornard Road
| Sudbury
| Suffolk
| CO10 2XB
Independent auditors | Larking Gowen LLP
| Chartered Accountants & Statutory Auditors
| 1 Claydon Business Park
| Great Blakenham
| Ipswich
| IP6 0NL
STEPHEN WALTERS & SONS LIMITED CONTENTS
| Page
Strategic report | 1 - 2
Directors' report | 3 - 4
Independent auditors' report | 5 - 8
Statement of comprehensive income | 9
Balance sheet | 10
Statement of changes in equity | 11
Notes to the financial statements | 12 - 26
STEPHEN WALTERS & SONS LIMITED STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2025
Introduction
The company is principally engaged in the designing and weaving of silk and other luxury fabrics.
Business review
During the year, turnover decreased by 6.0% to £8,480k (2024 - £9,025k), with a gross margin of 27.6% (2024 - 28.7%). The Company made a net profit before tax of £99k (2024 – £806k). Lower profits in the period were predominantly driven by reduced revenues and increased labour costs. Liquidity remains healthy with a current ratio of 4.61 (2024 - 3.37). Given the current market conditions the directors are satisfied with the results for the year.
Principal risks and uncertainties
The principal risks and uncertainties remain those associated with any business manufacturing in the UK and supplying a global consumer market in a volatile, uncertain economic and political environment. The trading environment for the coming year remains indeterminate with global rising costs. The directors have responded quickly and practically to these scenarios; ensuring the safety and wellbeing of our staff, controlling costs, preserving cash and improving efficiencies. The directors continue to invest organically to support sustainable growth and anticipate continued profitable results.
Financial key performance indicators
The directors measure the Company's performance on gross profit and net profit achieved. Environmental Social and Governance Further to financial performance indicators we have recognised the importance of environmental, social and governance activities and upcoming reporting requirements. The directors recognise the fashion industry’s impact on our planet, and we want to be a positive force for change. The directors are committed to more than just meeting industry sustainability standards—they aim to set the bar higher. As the first UK mill to earn the Oeko-Tex STeP certification, the directors consider seriously a forward-thinking approach and dedication to environmental and ethical excellence. The Company’s sustainability efforts focus on four main pillars: Products, Processes, Environment, and Social Responsibility. The business has taken a proactive approach to undertake actions toward measuring and simultaneously reducing energy usage and the environmental impact of wider business activities. Beyond this responsibility section, further data on other environmental, social and governance topics, plus more detailed examples of the company’s progress are available in the annual responsibility report. Page 1
STEPHEN WALTERS & SONS LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 This report was approved by the board and signed on its behalf.
................................................ T L Goldsmith Director
Date: 28 November 2025
Page 2
STEPHEN WALTERS & SONS LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 31 MARCH 2025 The directors present their report and the financial statements for the year ended 31 March 2025.
Results and dividends
The profit for the year, after taxation, amounted to £111,145 (2024 - £577,868). The directors do not propose a dividend in 2024 (2023 - £Nil).
Directors
The directors who served during the year were:
D J Walters
J D B Walters
T L Goldsmith
C D Yates
D A Boreham
Going concern and future developments
The Directors have been actively and closely involved in the affairs of the Company throughout the year to 31 March 2025, they continue to be involved and as such are aware of the effect of rising costs and economic uncertainty on the business and operations of the Company. Revenues in Stephen Walters & Sons Limited for the year ended 31 March 2025 have decreased 6% compared to the prior year as markets have experienced continued volatility. Net assets within the Company remain more than sufficient to meet its financial obligations when they become due. The Directors continue to explore new market opportunities and plan to continue the investment in developing and sustaining the business going forward. Whilst there is clearly currently some future economic uncertainty, these conditions do not cast significant doubt about the ability of the company to continue as a going concern. Based on this, the Directors have concluded that they have a reasonable expectation that the Company will have adequate resources to continue in operational existence for the foreseeable future, and, based on the economic environment recovering within the timeframe being widely anticipated, at least twelve months from the date of signing these financial statements, they continue to adopt the going concern basis of accounting in preparing these financial statements. Further detail is included in the going concern accounting policy. Page 3
STEPHEN WALTERS & SONS LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
Directors' responsibilities statement
The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to: ∙select suitable accounting policies for the Company's financial statements and then apply them consistently; ∙make judgments and accounting estimates that are reasonable and prudent; ∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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.
Disclosure of information to auditors
Each of the persons who are directors at the time when this Directors' report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Auditors
The auditors, Larking Gowen LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board on 28 November 2025 and signed on its behalf.
................................................ T L Goldsmith Director
Page 4
STEPHEN WALTERS & SONS LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEPHEN WALTERS & SONS LIMITED
Opinion
We have audited the financial statements of Stephen Walters & Sons Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: ∙give a true and fair view of the state of the Company's affairs as at 31 March 2025 and of its profit for the year then ended; ∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ∙have been prepared in accordance with the requirements of the Companies Act 2006.
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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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. Page 5
STEPHEN WALTERS & SONS LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEPHEN WALTERS & SONS LIMITED (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: ∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or ∙the financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of directors' remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' responsibilities statement set out on page 4, 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. Page 6
STEPHEN WALTERS & SONS LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEPHEN WALTERS & SONS LIMITED (CONTINUED)
Auditors' 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 Auditors' 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: • Enquiries with management and those charged with governance around actual and potential litigation and claims; • Reviewing legal and professional invoices to identify any other potential litigations or claims; • Reviewing minutes of management meetings; • Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; • Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business. Because of the field in which the client operates, we identified the following areas or laws and regulations as those most likely to have a material impact on the financial statements: Health and Safety; employment law (including the Working Time Directive); anti-bribery and corruption; General Data Protection Regulations and compliance with the UK Companies Act. Because of the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report. Page 7
STEPHEN WALTERS & SONS LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEPHEN WALTERS & SONS LIMITED (CONTINUED)
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 Auditors' 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. James Nichols (Senior statutory auditor) for and on behalf of Larking Gowen LLP Chartered Accountants Statutory Auditors Ipswich 2 December 2025 Page 8
STEPHEN WALTERS & SONS LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2025
| 2025 | 2024
Note | £ | £
Turnover | 4 | 8,479,967 | 9,025,153
Cost of sales |  | (6,139,789) | (6,431,486)
Gross profit |  | 2,340,178 | 2,593,667
Distribution costs |  | (1,012,196) | (893,974)
Administrative expenses |  | (1,290,320) | (871,146)
Other operating income |  | - | 704
Fair value movements |  | 50,771 | (23,310)
Operating profit | 5 | 88,433 | 805,941
Interest receivable and similar income | 9 | 20,895 | 33,327
Interest payable and similar expenses | 10 | (10,343) | (13,323)
Profit before tax |  | 98,985 | 825,945
Tax on profit | 11 | 12,160 | (248,077)
Profit for the financial year |  | 111,145 | 577,868
There were no recognised gains and losses for 2025 or 2024 other than those included in the statement of comprehensive income.
There was no other comprehensive income for 2025 (2024:£NIL).
The notes on pages 12 to 26 form part of these financial statements.
Page 9
STEPHEN WALTERS & SONS LIMITED REGISTERED NUMBER: 00060209 BALANCE SHEET AS AT 31 MARCH 2025
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 12 |  | 2,261,455 |  | 1,884,937
|  |  | 2,261,455 |  | 1,884,937
Current assets |  |  |  |  |
Stocks | 13 | 2,826,537 |  | 3,186,191 |
Debtors: amounts falling due within one year | 14 | 1,861,572 |  | 1,832,567 |
Cash at bank and in hand |  | 332,368 |  | 351,720 |
|  | 5,020,477 |  | 5,370,478 |
Creditors: amounts falling due within one year | 15 | (1,089,657) |  | (1,591,703) |
Net current assets |  |  | 3,930,820 |  | 3,778,775
Total assets less current liabilities |  |  | 6,192,275 |  | 5,663,712
Creditors: amounts falling due after more than one year | 16 |  | (510,817) |  | (200,222)
Provisions for liabilities |  |  |  |  |
Deferred tax | 17 | (452,574) |  | (345,751) |
|  |  | (452,574) |  | (345,751)
Net assets |  |  | 5,228,884 |  | 5,117,739
Capital and reserves |  |  |  |  |
Called up share capital | 18 |  | 32,466 |  | 32,466
Capital redemption reserve | 19 |  | 19,558 |  | 19,558
Profit and loss account | 19 |  | 5,176,860 |  | 5,065,715
|  |  | 5,228,884 |  | 5,117,739
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................ T L Goldsmith
Director
Date: 28 November 2025
The notes on pages 12 to 26 form part of these financial statements. Page 10
STEPHEN WALTERS & SONS LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2025
| Called up share capital | Capital redemption reserve | Profit and loss account | Total equity
| £ | £ | £ | £
At 1 April 2023 | 32,466 | 19,558 | 4,487,847 | 4,539,871
Comprehensive income for the year |  |  |  |
Profit for the year | - | - | 577,868 | 577,868
Total comprehensive income for the year | - | - | 577,868 | 577,868
At 1 April 2024 | 32,466 | 19,558 | 5,065,715 | 5,117,739
Comprehensive income for the year |  |  |  |
Profit for the year | - | - | 111,145 | 111,145
Total comprehensive income for the year | - | - | 111,145 | 111,145
At 31 March 2025 | 32,466 | 19,558 | 5,176,860 | 5,228,884
| The notes on pages 12 to 26 form part of these financial statements.
Page 11
STEPHEN WALTERS & SONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
1. | General information
Stephen Walters & Sons Limited is a private company, limited by shares and incorporated in England and Wales. Registered number 00060209. The registered office is Sudbury Silk Mills, Cornard Road, Sudbury, Suffolk, CO10 2XB. The company is principally engaged in the designing and weaving of silk and other fabrics and the dyeing and winding of silk and other fibres. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The financial statements are presented in sterling which is the functional currency of the company rounded to the nearest £. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3). The following principal accounting policies have been applied:
| 2.2 | Financial Reporting Standard 102 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": ∙the requirements of Section 7 Statement of Cash Flows; ∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); ∙the requirements of Section 33 Related Party Disclosures paragraph 33.7. This information is included in the consolidated financial statements of Sudbury Silk Mills Limited as at 31 March 2025 and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ. Page 12
STEPHEN WALTERS & SONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.3 | Going concern
In recent years, the Directors have taken significant action in terms of cost reduction activities in order to scale the business appropriately for future revenues. The Directors have also rolled out a companywide programme to improve efficiencies and sustainability through waste elimination to ensure the Company meets its future financial targets. The Company benefits from a strong net asset position and continued support from the group where cash reserves remain strong. Current economic conditions do not cast significant doubt on the ability of the company to continue as a going concern. Profit and loss forecasts for the coming 12 months indicate a continued profitability and based on this, along with positive cash forecasts and a focus across the organisation on cost control, the Directors have concluded that they have a reasonable expectation that the Company will have adequate resources to continue in operational existence for the foreseeable future. Based on applicable market sectors and the wider economic environment recovering within the timeframe anticipated, considering at least twelve months from the date of signing these financial statements, the Directors continue to adopt the going concern basis of accounting in preparing these financial statements.
| 2.4 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: ∙the Company has transferred the significant risks and rewards of ownership to the buyer; ∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; ∙the amount of revenue can be measured reliably; ∙it is probable that the Company will receive the consideration due under the transaction; and ∙the costs incurred or to be incurred in respect of the transaction can be measured reliably. Page 13
STEPHEN WALTERS & SONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.5 | Operating leases: the Company as lessee
Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset. The Company has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 1 April 2014 to continue to be charged over the period to the first market rent review rather than the term of the lease.
| 2.6 | Government grants
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Statement of comprehensive income at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
| 2.7 | Interest income
Interest income is recognised in the Statement of comprehensive income using the effective interest method.
| 2.8 | Borrowing costs
All borrowing costs are recognised in the Statement of comprehensive income in the year in which they are incurred.
| 2.9 | Pensions
Defined contribution pension plan The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds. Page 14
STEPHEN WALTERS & SONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.10 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of comprehensive income. Foreign exchange gains and losses are presented in the Statement of comprehensive income within 'administrative expenses'.
| 2.11 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Page 15
STEPHEN WALTERS & SONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.12 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Leasehold improvements | - | 4% straight line
|  |  |  | Plant and machinery | - | 5% - 35% straight line
|  |  |  | Motor vehicles | - | 20% straight line
|  |  |  | Fixtures and fittings | - | 20% straight line
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
| 2.13 | Stocks and work in progress
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of comprehensive income.
| 2.14 | Debtors
Short-term debtors are measured at transaction price, less any impairment.
| 2.15 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
| 2.16 | Creditors
Short-term creditors are measured at the transaction price. Page 16
STEPHEN WALTERS & SONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.17 | Financial instruments
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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. Basic financial assets Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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. Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Other financial assets Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment. Impairment of financial assets At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. Basic 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 the deduction of all its liabilities. Page 17
STEPHEN WALTERS & SONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.17 | Financial instruments (continued)
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Other financial instruments Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss. Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy. Derecognition of financial instruments Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled. Page 18
STEPHEN WALTERS & SONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following have had the most significant effect on amounts recognised in the financial statements. Areas of judgement and key sources of estimation uncertainty relate to stock valuation. Stock valuation Stock is valued at standard cost which incorporates estimations of the values of various elements of the procurement and production process. The estimations are made using the directors past experience and the most relevant information available at the time. The standard costs are reviewed and updated every 6 months.
4. | Turnover
The whole of the turnover is attributable to the principal activities of the company. An analysis of turnover by geographical location has not been disclosed as the directors consider that such analysis would be seriously prejudicial to the business.
5. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Depreciation of tangible fixed assets | 306,989 | 275,659
| Exchange differences | 4,405 | (45,265)
| Other operating lease rentals | 102,000 | 102,000
6. | Auditors' remuneration
| During the year, the Company obtained the following services from the Company's auditors:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Fees payable to the Company's auditors for the audit of the Company's financial statements | 18,225 | 17,525
Page 19
STEPHEN WALTERS & SONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
7. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Wages and salaries | 3,189,261 | 3,063,012
| Social security costs | 291,117 | 247,029
| Cost of defined contribution scheme | 369,963 | 332,324
|  | 3,850,341 | 3,642,365
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2025 | 2024
|  |  | No. | No.
|  | Textile operatives | 40 | 38
|  | Administration | 58 | 58
|  |  | 98 | 96
8. | Directors' remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Directors' emoluments | 365,881 | 344,831
| Company contributions to defined contribution pension schemes | 81,628 | 54,544
|  | 447,509 | 399,375
| During the year retirement benefits were accruing to 3 directors (2024 - 3) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £101,211 (2024 - £99,852).
| The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £7,771 (2024 - £42,728).
Page 20
STEPHEN WALTERS & SONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
9. | Interest receivable
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank interest receivable | 20,895 | 33,327
|  | 20,895 | 33,327
10. | Interest payable and similar expenses
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank interest payable | 10,343 | 13,323
|  | 10,343 | 13,323
11. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 16,096 | 16,038
| Adjustments in respect of previous periods | (37,074) | (1,939)
|  | (20,978) | 14,099
| Group taxation relief | (98,005) | -
|  | (118,983) | 14,099
| Total current tax | (118,983) | 14,099
| Deferred tax |  |
| Origination and reversal of timing differences | 106,823 | 233,978
| Total deferred tax | 106,823 | 233,978
|  | (12,160) | 248,077
Page 21
STEPHEN WALTERS & SONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 11.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is the same as (2024 - the same as) the standard rate of corporation tax in the UK of 25% (2024 - 25%) as set out below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 98,985 | 825,945
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | 24,746 | 206,486
| Effects of: |  |
| Fixed asset differences | 573 | 39,047
| Expenses not deductible for tax purposes | (72) | 1,931
| Remeasurement of deferred tax for changes in tax rates | - | 2,552
| Adjustments to tax charge in respect of prior periods | (37,074) | (1,939)
| Marginal relief | (333) | -
| Total tax charge for the year | (12,160) | 248,077
| Factors that may affect future tax charges
There were no factors that may affect future tax charges. Page 22
STEPHEN WALTERS & SONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
12. | Tangible fixed assets
|  | Short-term leasehold property | Plant and machinery | Motor vehicles | Fixtures and fittings | Total
|  | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |
| At 1 April 2024 | 18,445 | 6,821,421 | 14,000 | 1,697,016 | 8,550,882
| Additions | - | 455,545 | - | 227,962 | 683,507
| Disposals | - | (57,297) | - | - | (57,297)
| At 31 March 2025 | 18,445 | 7,219,669 | 14,000 | 1,924,978 | 9,177,092
| Depreciation |  |  |  |  |
| At 1 April 2024 | 5,227 | 5,022,823 | 14,000 | 1,623,895 | 6,665,945
| Charge for the year on owned assets | 738 | 254,712 | - | 51,539 | 306,989
| Disposals | - | (57,297) | - | - | (57,297)
| At 31 March 2025 | 5,965 | 5,220,238 | 14,000 | 1,675,434 | 6,915,637
| Net book value |  |  |  |  |
| At 31 March 2025 | 12,480 | 1,999,431 | - | 249,544 | 2,261,455
| At 31 March 2024 | 13,218 | 1,798,598 | - | 73,121 | 1,884,937
13. | Stocks
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Raw materials and consumables | 1,886,269 | 2,207,111
| Work in progress (goods to be sold) | 462,742 | 471,787
| Finished goods and goods for resale | 477,526 | 507,293
|  | 2,826,537 | 3,186,191
| The carrying value of stocks are stated net of impairment losses totalling £629,610 (2024 - £573,835). Impairment losses totalling £55,775 (2024 - £43,536) were recognised in the Statement of Comprehensive Income.
Page 23
STEPHEN WALTERS & SONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
14. | Debtors
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade debtors | 567,481 | 796,649
| Amounts owed by group undertakings | - | 102,415
| Other debtors | 116,188 | 4,269
| Prepayments and accrued income | 1,114,334 | 894,432
| Tax recoverable | 11,364 | 33,369
| Financial instruments | 52,205 | 1,433
|  | 1,861,572 | 1,832,567
15. | Creditors: Amounts falling due within one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank overdrafts | - | 427,792
| Trade creditors | 565,049 | 538,721
| Amounts owed to group undertakings | 150,389 | -
| Corporation tax | - | 16,038
| Other taxation and social security | 63,428 | 65,212
| Other creditors | 109,681 | 86,075
| Accruals and deferred income | 201,110 | 457,865
|  | 1,089,657 | 1,591,703
16. | Creditors: Amounts falling due after more than one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Amounts owed to group undertakings | 322,822 | -
| Accruals and deferred income | 187,995 | 200,222
|  | 510,817 | 200,222
Page 24
STEPHEN WALTERS & SONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
17. | Deferred taxation
|  | 2025 | 2024
|  | £ | £
| At beginning of year | (345,751) | (111,773)
| Charged to profit or loss | (106,823) | (233,978)
| At end of year | (452,574) | (345,751)
| The provision for deferred taxation is made up as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Accelerated capital allowances | (460,592) | (353,368)
| Short term timing differences | 8,018 | 7,617
|  | (452,574) | (345,751)
18. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 32,466 (2024 - 32,466) Ordinary shares of £1.00 each | 32,466 | 32,466
| Share capital represents the nominal value of shares issued. Shares carry voting rights and an entitlement to dividends.
19. | Reserves
Capital redemption reserve This reserve records the nominal value of shares repurchased by the company. Profit and loss account This account includes all current and prior period retained profits and losses.
20. | Contingent liabilities
A guarantee has been issued in favour of H M Revenue and Customs up to a limit of £40,000 (2024 - £40,000). Page 25
STEPHEN WALTERS & SONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
21. | Capital commitments
| At 31 March 2025 the Company had capital commitments as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Contracted for but not provided in these financial statements | - | 156,804
|  | - | 156,804
22. | Pension commitments
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £369,963 (2024 - £332,324). Contributions totalling £33,713 (2024 - £32,107) were payable to the fund at the balance sheet date.
23. | Related party transactions
| During the year the company made purchases of £142,747 (2024 - £122,374) from Spitalfields Fabrics Limited, a company with the same ultimate controlling party. At the year end £12,664 (2024 - £14,980) was owed to Spitalfields Fabrics Limited. During the year the company charged management fees of £54,892 (2024 - £66,538) to 1697 Limited, a company with the same ultimate controlling party. At the year end the company was owed £Nil (2024 - £2,733) from 1697 Limited.
24. | Controlling party
The Company is a wholly owned subsidiary of Sudbury Silk Mills Limited, a company incorporated in England and Wales. Sudbury Silk Mills Limited is the parent of the group in which these financial statements are consolidated. The registered office address of Sudbury Silk Mills Limited is Sudbury Silk Mills, Cornard Road, Sudbury, Suffolk, CO10 2XB. There is no ultimate controlling party.
Page 26