Thew Arnott & Co.Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 00718598 (England and Wales)

Financial Statements

for the Year Ended 31 March 2022

for

THEW ARNOTT & CO.LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

Directors:

R F Newman

Mrs V A Newman

C E Crossley

P M Jupp

G P Stuart-Brown

N Newman

Registered office:

Aissela

46 High Street

Esher

Surrey

KT10 9QY

Registered number:

00718598 (England and Wales)

Auditors:

Haines Watts

Chartered Accountants

Statutory Auditor

Aissela

46 High Street

Esher

Surrey

KT10 9QY

Fixed assets

Tangible assets

4

596,945

504,058

Current assets

Stocks

1,682,177

1,218,138

Debtors

5

3,590,519

2,844,890

Cash at bank

241,511

511,170

5,514,207

4,574,198

Creditors

Amounts falling due within one year

6

3,317,553

2,422,650

Net current assets

2,196,654

2,151,548

Total assets less current liabilities

2,793,599

2,655,606

Provisions for liabilities

7

68,052

21,006

Net assets

2,725,547

2,634,600

Capital and reserves

Called up share capital

8

76

76

Capital redemption reserve

24

24

Retained earnings

2,725,447

2,634,500

Shareholders' funds

2,725,547

2,634,600

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 19 July 2022 and were signed on its behalf by:

R F Newman - Director

1.	Statutory information

Thew Arnott & Co.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.

The presentation currency of the financial statements is the Pound Sterling (£).

The company's principal place of business is located at 270 London Road, Wallington, Surrey, SM6 7DJ.

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going Concern

The financial statements have been prepared on a going concern basis.

The Directors believe that the business will continue to operate profitably. They have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. Based on these assessments, given the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

The financial statements do not include any adjustments to the value of the balance sheet which would result from the going concern basis not being valid.

Key source of estimation, uncertainty and judgement

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic

lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

(ii) Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers multiple factors regarding their recoverability.

(iii) Stock provisioning

When calculating the stocks provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipating saleability of finished goods.

Turnover

Turnover represents sales derived from the supply of ingredients, raw materials as well as lecithin blends, confectionery polishes and glazes which are manufactured by the company.

Turnover is recognised once the associated stock items have left the company's premises. At this stage of the sales process, the risk and rewards of ownership of the goods are deemed to have been transferred to the customer.

Turnover is presented net of VAT and other taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Long leasehold

-

over the length of the lease

Plant and machinery

-

15% on cost

Fixtures and fittings

-

25% on cost and 20% on cost

Motor vehicles

-

20% on cost

Government grants

Grant income is recognised under the accrual model of Financial Reporting Standard 102.

Grant income is recognised in the profit and loss account on a systematic basis over the period in which the company recognises the related costs for which the grant is intended to compensate.

Stocks

Stocks are valued at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis. Net realisable value is based on estimated selling price less additional costs to completion and disposal.

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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 statement of financial position date.

The company is a beneficiary of Research & Development (R&D) tax relief from the UK Government in the form of reductions in its annual tax liability, as well as repayable tax credits. Current tax assets of reductions in current tax liabilities for R&D claims are only recognised when the amount can be reliably determined and the probability of HM Revenue & Customs accepting the claim is considered high.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 year 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 statement of financial position 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.

3.	Employees and directors

The average number of employees during the year was 38 (2021 - 34 ) .

4.	Tangible fixed assets

Fixtures

Long

Plant and

and

Motor

leasehold

machinery

fittings

vehicles

Totals

£

£

£

£

£

Cost

At 1 April 2021

250,393

772,080

735,535

40,310

1,798,318

Additions

35,135

157,357

9,649

-

202,141

At 31 March 2022

285,528

929,437

745,184

40,310

2,000,459

Depreciation

At 1 April 2021

35,436

591,856

626,658

40,310

1,294,260

Charge for year

5,458

64,094

39,702

-

109,254

At 31 March 2022

40,894

655,950

666,360

40,310

1,403,514

Net book value

At 31 March 2022

244,634

273,487

78,824

-

596,945

At 31 March 2021

214,957

180,224

108,877

-

504,058

5.

Debtors: amounts falling due within one year

2022

2021

£

£

Trade debtors

3,360,560

2,646,776

Amounts owed by group undertakings

29,307

80,448

Other debtors

200,652

117,666

3,590,519

2,844,890

6.

Creditors: amounts falling due within one year

2022

2021

£

£

Trade creditors

1,836,907

1,683,063

Amounts owed to group undertakings

876,776

271,776

Taxation and social security

376,329

232,828

Other creditors

227,541

234,983

3,317,553

2,422,650

7.	Provisions for liabilities

2022

2021

£

£

Deferred tax

68,052

21,006

Deferred tax

£

Balance at 1 April 2021

21,006

Provided during year

47,046

Capital allowances

Balance at 31 March 2022

68,052

8.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

76

Ordinary

£1

76

76

9.	Disclosure under Section 444(5B) of the Companies Act 2006

The Report of the Auditors was unqualified.

Paul Hodgett BA (Hons) FCA (Senior Statutory Auditor)

for and on behalf of Haines Watts

10.	Contingent liabilities

The bank has guaranteed deferment duty to HM Revenue and Customs on the basis of £60,000 (2021: £60,000) held on behalf of Thew Arnott & Co Limited in a separate bank account.

11.	Related party disclosures

The company rents its business premises from the company's Self Administered Pension Scheme, the beneficiaries of which are directors of the company.

During the year the company paid a net total of £329,445 (2021: £275,000) to the Scheme with regard to this arrangement.

At the balance sheet date the company was owed £70,938 by the Scheme (2021: £68,750).

The company is a wholly owned subsidiary of Thew Arnott Group Limited a company registered at Aissela, 46 High Street, Esher, Surrey, United Kingdom, KT10 9QY.

12.	Financial commitments and off balance sheet arrangements

Operating lease commitments which are not included in the balance sheet amount to £1,686,171 (2021: £1,954,179) payable over the next twelve (2021: thirteen) years.

13.

Pensions

The company contributes to defined contribution pension schemes for certain members of staff and directors. The assets of the schemes are held separately from those of the company in independently administered funds. The pension charge amounted to £96,515 (2021: £94,400).