Whitesales Group Limited - Limited company accounts 20.1

REGISTERED NUMBER: 09187485 (England and Wales)

for

Page

Group Strategic Report  

1

Report of the Directors  

2

Report of the Independent Auditors  

4

Consolidated Statement of Comprehensive Income

7

Consolidated Statement of Financial Position  

8

Company Statement of Financial Position  

9

Consolidated Statement of Changes in Equity  

10

Company Statement of Changes in Equity  

11

Consolidated Statement of Cash Flows  

12

Notes to the Consolidated Statement of Cash Flows

13

Notes to the Consolidated Financial Statements

14

The directors present their strategic report of the company and the group for the year ended 31 December 2020.

REVIEW OF BUSINESS

The directors are delighted to report another successful year for the group.

The group has generated £21,928,096 (2019: £20,540,748) of turnover due to excellent products and customer service. The group has generated £3,047,954 (2019: £2,635,571) of profits before tax to give satisfactory results.

At the year end the group had shareholders funds of £8,369,681 (2019: £7,408,621) including distributable profits of £5,108,806 (2019: £3,857,577).  The directors therefore believe the group's position to be satisfactory, especially as the group's current assets exceed its current liabilities by £7,583,371 (2019: £4,845,111) with cash balances of £4,230,782 (2019: £1,269,324).

The directors believe that there is a strong foundation to build the business further and improve on the current year's results.

PRINCIPAL RISKS AND UNCERTAINTIES

At the balance sheet signing date, the United Kingdom is in the middle of a medical and economic crisis due to the Covid-19 global pandemic which is the key risk to all businesses in the country.  The directors of the company and group have taken steps to ensure minimum cash outflow during the period of lock down, while obtaining government and bank assistance where appropriate.  The group was in a healthy position going into the Covid-19 crisis and the directors believe that sufficient actions have been taken that will allow the group to react swiftly to the gradual reduction and end ot the lock down period, such that the group can attempt to return to normal trading conditions.

The directors have assessed the main standard risk facing the group as being increased competition from other national companies.  These companies are able to sell similar products to those offered by the group at competitive prices, which could lead to decreasing margins.  The directors believe that the quality of our products and customer service will help mitigate these risks going forward.

ON BEHALF OF THE BOARD:

Mr T J White - Director

11 June 2021

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2020.

PRINCIPAL ACTIVITY

DIVIDENDS

No interim dividends were paid during the period ended 31 December 2020.  The directors recommended final dividends of £1,353,758 to be paid at varying levels across the ordinary A-O £1 shares.  No dividends have been declared on the ordinary £1, management £1 or deferred shares.  The total distribution of dividends for the period ended 31 December 2020 will be £1,353,758.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report.

Mr T J White

Mr S L White

Mr P White

Mr N D White

Mr C W White

Mr B P White

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, 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), 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 the group 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;

-

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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

Drummond Laurie CA are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Mr T J White - Director

11 June 2021

Opinion

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 group 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 the 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and 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 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 the audit:

-

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

-

the Group Strategic Report and the Report of the Directors 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or 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 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

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 group's and 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 group or the parent 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.

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.

Based on our understanding of the group, we identified that the principal risks of non-compliance with laws and regulations related to fraudulent manipulation of the financial statements, including the risk of override of controls, to reduce profits and tax liabilities.  We determined that the most likely method of manipulation would be the posting of inappropriate journal entries.  Audit procedures performed by the audit engagement team consisted of a review of large and unusual journal entries, challenging assumptions and judgements made by management in significant accounting estimates, discussions with management related to known or suspected instances of non-compliance with laws and regulations, review of Board minutes where available, and an evaluation of management controls designed to prevent and detect irregularities.

There are inherent limitations in the audit procedures described above and  the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.  Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations or through collusion.

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.

Ian Bilsland (Senior Statutory Auditor)

for and on behalf of Drummond Laurie CA

Statutory Auditor

Unit 5

Gateway Business Park

Beancross Road

Grangemouth

FK3 8WX

22 June 2021

TURNOVER

3

21,928,096

20,540,748

Cost of sales

(14,619,826

)

(13,924,862

)

GROSS PROFIT

7,308,270

6,615,886

Administrative expenses

(3,895,094

)

(3,892,943

)

3,413,176

2,722,943

Other operating income

109,236

-

OPERATING PROFIT

5

3,522,412

2,722,943

Interest receivable and similar income

1,910

998

3,524,322

2,723,941

Amounts written off investments

6

(473,350

)

(79,214

)

3,050,972

2,644,727

Interest payable and similar expenses

7

(3,018

)

(9,156

)

PROFIT BEFORE TAXATION

3,047,954

2,635,571

Tax on profit

8

(442,967

)

(500,659

)

PROFIT FOR THE FINANCIAL YEAR

2,604,987

2,134,912

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME

FOR THE YEAR

2,604,987

2,134,912

Profit attributable to:

Owners of the parent

2,604,987

2,134,912

Total comprehensive income attributable to:

Owners of the parent

2,604,987

2,134,912

FIXED ASSETS

Intangible assets

11

1,425,000

1,805,000

Tangible assets

12

943,801

952,207

Investments

13

-

-

2,368,801

2,757,207

CURRENT ASSETS

Stocks

14

2,645,521

2,414,096

Debtors

15

4,531,537

4,511,878

Cash at bank

4,230,782

1,269,324

11,407,840

8,195,298

CREDITORS

Amounts falling due within one year

16

(3,824,469

)

(3,350,187

)

NET CURRENT ASSETS

7,583,371

4,845,111

TOTAL ASSETS LESS CURRENT

LIABILITIES

9,952,172

7,602,318

CREDITORS

Amounts falling due after more than one

year

17

(1,500,104

)

(112,661

)

PROVISIONS FOR LIABILITIES

21

(82,387

)

(81,036

)

NET ASSETS

8,369,681

7,408,621

CAPITAL AND RESERVES

Called up share capital

22

3,251,153

3,551,044

Share premium

23

9,722

-

Retained earnings

23

5,108,806

3,857,577

SHAREHOLDERS' FUNDS

8,369,681

7,408,621

The financial statements were approved by the Board of Directors and authorised for issue on 11 June 2021 and were signed on its behalf by:

Mr T J White - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

3,265,375

3,555,508

3,265,375

3,555,508

CURRENT ASSETS

Debtors

15

-

36

TOTAL ASSETS LESS CURRENT

LIABILITIES

3,265,375

3,555,544

CAPITAL AND RESERVES

Called up share capital

22

3,251,153

3,551,044

Share premium

23

9,722

-

Retained earnings

23

4,500

4,500

SHAREHOLDERS' FUNDS

3,265,375

3,555,544

Company's profit for the financial year

1,353,758

1,156,123

The financial statements were approved by the Board of Directors and authorised for issue on 11 June 2021 and were signed on its behalf by:

Mr T J White - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£   

£   

£   

£   

Balance at 1 January 2019

4,551,044

2,878,788

-

7,429,832

Changes in equity

Reduction in share capital

(1,000,000

)

-

-

(1,000,000

)

Dividends

-

(1,156,123

)

-

(1,156,123

)

Total comprehensive income

-

2,134,912

-

2,134,912

Balance at 31 December 2019

3,551,044

3,857,577

-

7,408,621

Changes in equity

Issue of share capital

109

-

9,722

9,831

Reduction in share capital

(300,000

)

-

-

(300,000

)

Dividends

-

(1,353,758

)

-

(1,353,758

)

Total comprehensive income

-

2,604,987

-

2,604,987

Balance at 31 December 2020

3,251,153

5,108,806

9,722

8,369,681

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£   

£   

£   

£   

Balance at 1 January 2019

4,551,044

4,500

-

4,555,544

Changes in equity

Reduction in share capital

(1,000,000

)

-

-

(1,000,000

)

Dividends

-

(1,156,123

)

-

(1,156,123

)

Total comprehensive income

-

1,156,123

-

1,156,123

Balance at 31 December 2019

3,551,044

4,500

-

3,555,544

Changes in equity

Issue of share capital

109

-

9,722

9,831

Reduction in share capital

(300,000

)

-

-

(300,000

)

Dividends

-

(1,353,758

)

-

(1,353,758

)

Total comprehensive income

-

1,353,758

-

1,353,758

Balance at 31 December 2020

3,251,153

4,500

9,722

3,265,375

Cash flows from operating activities

Cash generated from operations

1

3,942,505

2,200,545

Interest paid

(2,848

)

(8,945

)

Interest element of hire purchase payments

paid

(170

)

(211

)

Tax paid

(538,441

)

14,502

Net cash from operating activities

3,401,046

2,205,891

Cash flows from investing activities

Purchase of tangible fixed assets

(165,114

)

(214,797

)

Sale of tangible fixed assets

93,421

50,346

Interest received

1,910

998

Net cash from investing activities

(69,783

)

(163,453

)

Cash flows from financing activities

New loans in year

1,450,000

100,000

Loan repayments in year

(35,376

)

(27,384

)

Capital repayments in year

(67,830

)

(97,257

)

Amount withdrawn by directors

(72,672

)

(401,365

)

Share issue

9,831

-

Share capital reduction

(300,000

)

-

Equity dividends paid

(1,353,758

)

(1,156,123

)

Net cash from financing activities

(369,805

)

(1,582,129

)

Increase in cash and cash equivalents

2,961,458

460,309