Wholesale Welding Supplies Limited - Limited company accounts 20.1

REGISTERED NUMBER: 01684362 (England and Wales)

Report of the Directors and

Financial Statements for the Period 1 March 2019 to 31 December 2019

for

Wholesale Welding Supplies Limited

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Statement of Comprehensive Income

6

Balance Sheet

7

Statement of Changes in Equity

8

Notes to the Financial Statements

9

DIRECTORS:

G P G Hawkins

Mrs A N S Bond

R J Case

L K Darton

Ms K Burkitt

P Rowlands

A N Dickinson

SECRETARY:

R J Case

REGISTERED OFFICE:

Peters House Orbital Centre

Icknield Way

Letchworth

Hertfordshire

SG6 1ET

REGISTERED NUMBER:

01684362 (England and Wales)

AUDITORS:

George Hay Partnership LLP

Chartered Accountants

and Statutory Auditor

Unit 1B

Focus 4

Fourth Avenue

Letchworth

Hertfordshire

SG6 2TU

The directors present their report with the financial statements of the company for the period 1 March 2019 to 31 December 2019.

DIVIDENDS

Based on the financial results for the period ended 31 December 2019 it is proposed that a dividend of £500,000

be declared to shareholders in April 2020.

EVENTS SINCE THE END OF THE PERIOD

Information relating to events since the end of the period is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 March 2019 to the date of this

report.

G P G Hawkins

Mrs A N S Bond

R J Case

L K Darton

Other changes in directors holding office are as follows:

A Hawkins - resigned 1 March 2019

Mrs J A Hawkins - resigned 1 March 2019

Ms K Burkitt - appointed 1 March 2019

P Rowlands - appointed 1 March 2019

A N Dickinson - appointed 1 March 2019

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance

with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the

directors have elected to prepare the financial statements in accordance with United Kingdom Generally

Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law

the directors must not approve the financial statements unless they are satisfied that they give a true and fair view

of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these

financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable 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 company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company

and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also

responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention

and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the

Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps

that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit

information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, George Hay Partnership LLP, will be proposed for re-appointment at the forthcoming Annual

General Meeting.

ON BEHALF OF THE BOARD:

R J Case - Director

14 May 2020

Opinion

We have audited the financial statements of Wholesale Welding Supplies Limited (the 'company') for the period

ended 31 December 2019 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement

of Changes in Equity and Notes to the Financial Statements, 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 December 2019 and of its profit for the period 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 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to

report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the

Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material

inconsistencies or apparent material misstatements, we are required to determine whether there is a material

misstatement in the financial statements or a material misstatement of the other information. 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 the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has 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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page two, 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 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.

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 a Report of the Auditors that includes our

opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in

accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise

from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities 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 Report

of the Auditors.

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 a Report of the Auditors 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.

Richard Dilley FCA FCCA (Senior Statutory Auditor)

for and on behalf of George Hay Partnership LLP

Chartered Accountants

and Statutory Auditor

Unit 1B

Focus 4

Fourth Avenue

Letchworth

Hertfordshire

SG6 2TU

18 May 2020

TURNOVER

4

7,149,257

6,508,261

Cost of sales

4,041,210

3,043,024

GROSS PROFIT

3,108,047

3,465,237

Distribution costs

471,407

492,916

Administrative expenses

1,464,075

1,853,186

1,935,482

2,346,102

1,172,565

1,119,135

Other operating income

93,832

311,528

OPERATING PROFIT

6

1,266,397

1,430,663

Interest payable and similar expenses

7

10,045

15,786

PROFIT BEFORE TAXATION

1,256,352

1,414,877

Tax on profit

8

255,004

223,359

PROFIT FOR THE FINANCIAL PERIOD

1,001,348

1,191,518

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

1,001,348

1,191,518

FIXED ASSETS

Intangible assets

9

100,455

90,826

Tangible assets

10

6,070,596

6,102,469

Investments

11

6

6

6,171,057

6,193,301

CURRENT ASSETS

Stocks

12

3,101,625

3,076,347

Debtors

13

2,193,071

1,795,204

Cash at bank and in hand

543,601

62,870

5,838,297

4,934,421

CREDITORS

Amounts falling due within one year

14

1,457,224

1,379,709

NET CURRENT ASSETS

4,381,073

3,554,712

TOTAL ASSETS LESS CURRENT LIABILITIES

10,552,130

9,748,013

CREDITORS

Amounts falling due after more than one year

15

(298,863

)

(496,094

)

PROVISIONS FOR LIABILITIES

19

(454,578

)

(454,578

)

NET ASSETS

9,798,689

8,797,341

CAPITAL AND RESERVES

Called up share capital

20

10,000

10,000

Revaluation reserve

21

2,408,134

2,408,134

Retained earnings

21

7,380,555

6,379,207

SHAREHOLDERS' FUNDS

9,798,689

8,797,341

The financial statements were approved by the Board of Directors and authorised for issue on 14 May 2020 and were signed on its behalf by:

R J Case - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2018

10,000

5,187,689

2,408,134

7,605,823

Changes in equity

Total comprehensive income

-

1,191,518

-

1,191,518

Balance at 28 February 2019

10,000

6,379,207

2,408,134

8,797,341

Changes in equity

Total comprehensive income

-

1,001,348

-

1,001,348

Balance at 31 December 2019

10,000

7,380,555

2,408,134

9,798,689

1.	STATUTORY INFORMATION

Wholesale Welding Supplies Limited is a private company, limited by shares , registered in England and

Wales. The company's registered number and registered office address can be found on the Company

Information page.

2.	STATEMENT OF COMPLIANCE

The financial statements have been prepared in accordance with applicable accounting standards

including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and

Republic of Ireland (FRS 102) and the Companies Act 2006.

The Financial Statements have been prepared for a period of 10 months due to a change in the period

end date to coincide with the Parent Company reporting requirements. As a result the comparative

information is not entirely comparable.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared on a going concern basis under the historical cost

convention, modified to include certain items at fair value. The financial statements are presented in

sterling which is the functional currency of the company and rounded to the nearest £   .

The significant accounting policies applied in the preparation of these financial statements are set out

below. These policies have been consistently applied to all years presented unless otherwise stated.

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 FRS 102 "The Financial Reporting Standard applicable in the UK and

Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d);

•

the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirement of Section 33 Related Party Disclosures paragraph 33.7.

Preparation of consolidated financial statements

The financial statements contain information about Wholesale Welding Supplies Limited as an individual

company and do not contain consolidated financial information as the parent of a group. The company is

exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated

financial statements as it and its subsidiary undertaking are included by full consolidation in the

consolidated financial statements of its parent, Indutrade AB, Sweden.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102

'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related

party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

Valuation of Properties

The long leasehold properties owned by the company have been included in the accounts at their Market

Value as at 31 December 2019. The valuation has been undertaken internally by the directors using all

available market information.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts,

rebates, value added tax and other sales taxes.

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the

goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that

the economic benefits associated with the transaction will flow to the company and the costs incurred or to

be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the

goods.

Goodwill

Goodwill has arisen from the hive-up of a subsidiary and it's related intangible assets. The directors

consider that this goodwill is of a value greater than that shown on the balance sheet and therefore no

amortisation is charged within these financial statements. An annual impairment review is undertaken and

any loss in value will be recognised at that time.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at

cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and

accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of

operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated

residual value, of each asset on a systematic basis over its expected useful life as follows:

Plant and machinery etc. - 25% reducing balance and 10% on cost.

Long leasehold property was valued at the year end by the directors.

Long leasehold property is not being depreciated as it is the directors' opinion that the useful economic life

and residual value would mean this charge is immaterial.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less any provision for impairment.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete

and slow moving items.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of

Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive

income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured using

tax rates and laws that have been enacted or substantively enacted by the period end and that are

expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable

that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange

ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating

result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of

the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's

pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments

Basic financial instruments are recognised at amortised cost with changes recognised in profit or loss.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded

at transaction price, less any bad debts. Any losses arising from impairment are recognised in the profit

and loss account in administrative expenses.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

Sales attributable to geographical markets outside the UK accounted for 4.23% of turnover.

5.	EMPLOYEES AND DIRECTORS

Period

Period

1.3.19

1.4.18

to

to

31.12.19

28.2.19

£

£

Wages and salaries

878,535

1,101,322

Social security costs

93,564

106,737

Other pension costs

19,499

52,558

991,598

1,260,617

The average number of employees during the period was as follows:

Period

Period

1.3.19

1.4.18

to

to

31.12.19

28.2.19

Management and Administration

23

20

Field Sales and Services

6

6

Warehouse

9

9

38

35

Period

Period

1.3.19

1.4.18

to

to

31.12.19

28.2.19

£

£

Directors' remuneration

264,417

470,313

Directors' pension contributions to money purchase schemes

7,537

44,084

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

4

4

Information regarding the highest paid director is as follows:

Period

Period

1.3.19

1.4.18

to

to

31.12.19

28.2.19

£

£

Emoluments etc

81,663

106,667

Pension contributions to money purchase schemes

4,394

739

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

Period

Period

1.3.19

1.4.18

to

to

31.12.19

28.2.19

£

£

Hire of plant and machinery

1,298

-

Depreciation - owned assets

43,146

49,452

Computer software amortisation

3,704

-

Auditors remuneration

10,150

10,125

Foreign exchange differences

(4,358

)

(27,873

)

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

Period

1.3.19

1.4.18

to

to

31.12.19

28.2.19

£

£

Mortgage

10,045

15,786

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the period was as follows:

Period

Period

1.3.19

1.4.18

to

to

31.12.19

28.2.19

£

£

Current tax:

UK corporation tax

255,004

223,359

Tax on profit

255,004

223,359

Reconciliation of total tax charge included in profit and loss

The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The

difference is explained below:

Period

Period

1.3.19

1.4.18

to

to

31.12.19

28.2.19

£

£

Profit before tax

1,256,352

1,414,877

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2019 - 19%)

238,707

268,827

Effects of:

Expenses not deductible for tax purposes

555

3,237

Depreciation in excess of capital allowances

7,100

878

Leased car adjustments

384

295

General bad debt provision

1,900

-

Difference on estimated liability

6,358

(533

)

Research and Development

-

(49,345

)

Total tax charge

255,004

223,359

9.	INTANGIBLE FIXED ASSETS

Computer

Goodwill

software

Totals

£

£

£

COST

At 1 March 2019

90,826

-

90,826

Additions

-

13,333

13,333

At 31 December 2019

90,826

13,333

104,159

AMORTISATION

Amortisation for period

-

3,704

3,704

At 31 December 2019

-

3,704

3,704

NET BOOK VALUE

At 31 December 2019

90,826

9,629

100,455

At 28 February 2019

90,826

-

90,826

10.	TANGIBLE FIXED ASSETS

Improvements

Long

to

Plant and

Computer

leasehold

property

machinery

equipment

Totals

£

£

£

£

£

COST OR VALUATION

At 1 March 2019

5,810,000

293,856

334,959

232,531

6,671,346

Additions

-

-

6,060

5,213

11,273

At 31 December 2019

5,810,000

293,856

341,019

237,744

6,682,619

DEPRECIATION

At 1 March 2019

-

157,680

213,898

197,299

568,877

Charge for period

-

18,650

16,425

8,071

43,146

At 31 December 2019

-

176,330

230,323

205,370

612,023

NET BOOK VALUE

At 31 December 2019

5,810,000

117,526

110,696

32,374

6,070,596

At 28 February 2019

5,810,000

136,176

121,061

35,232

6,102,469