Arden Winch & Co Limited - Limited company accounts 20.1

REGISTERED NUMBER: 01253792 (England and Wales)

Strategic Report, Directors' Report and

Financial Statements for the Year Ended 31 December 2021

for

Arden Winch & Co Limited

Page

Company Information

1

Strategic Report

2

Directors' Report

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

Mr Adam Christopher Banks

Mr Steven Barker

Miss Julie Edwina Cooke

Mr Richard Hastings Wetherill

Mr Nicholas Arden Winch

SECRETARY:

Miss Julie Edwina Cooke

REGISTERED OFFICE:

9 Acres Hill Lane

Sheffield

South Yorkshire

S9 4LR

REGISTERED NUMBER:

01253792 (England and Wales)

INDEPENDENT AUDITORS:

Landin Wilcock & Co

Statutory Auditor

68 Queen Street

Sheffield

South Yorkshire

S1 1WR

BANKERS:

HSBC

37 High Street

Meadowhall Shopping Centre

Sheffield

South Yorkshire

S9 1EN

The directors present their strategic report for the year ended 31 December 2021.

REVIEW OF BUSINESS

We started 2021 with the spectre of Covid/Lockdowns still hanging over us. This did however provide the business with some extra one-off sales of PPE in Q1, before levelling out in Q2.

By the end of the year, we had managed to retain some of the new accounts we had won during 2020. This was a result of our excellent supply chain and service when other companies failed.

The year ended with a turnover of £7.8 million, which is 40% above where we were pre-Covid in 2019 but down on the £12.5 million we did in 2020.

The company also took a large step towards our ultimate target of being Carbon Neutral. After site audits by an independent consultant, we invested in new lights and solar panels that reduced our energy usage by 33% and carbon by 13.1 tonne.

In a world where the global supply chain is failing, and we had unprecedented price rises/cost increases we finished the year in a strong position with a healthy profit.

The work of our staff as a team is key to this and I would like to go on record in thanking all staff and departments for their continued efforts and hard work.

PRINCIPAL RISKS AND UNCERTAINTIES

The main factors outside our control includes the actions of our competitors and government policy. Our senior management regularly review the competitive threats we face in order to identify the appropriate actions to be taken.

The main factors within our control is how we are organised internally, and the recruitment, retention and training of staff with the appropriate skills.

KEY PERFORMANCE INDICATORS

We rely on the below, together with other financial and non-financial key performance indicators to monitor the performance of the business. All indicators are reported and analysed regularly through the provision of management information and business reviews with senior personnel.

unit

2021

2020 - as restated

Turnover

£

7,788,397

12,563,306

Turnover growth

%

(38)

125

Gross profit margin

%

32

31

Profit/(loss) before tax

£

661,438

1,783,594

ON BEHALF OF THE BOARD:

Mr Steven Barker - Director

2 September 2022

The directors present their report with the financial statements of the company for the year ended 31 December 2021.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of an industrial merchant.

DIVIDENDS

Interim dividends of £238,696 were distributed and paid during the year ended 31 December 2021.

The directors recommend a further final dividend distribution of £238,696 be made in respect of the financial year ended 31 December 2021. This dividend has not been recognised as a liability in these financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report.

Mr Adam Christopher Banks

Mr Steven Barker

Miss Julie Edwina Cooke

Mr Richard Hastings Wetherill

Mr Nicholas Arden Winch

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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 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 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;

-	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, Landin Wilcock & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Miss Julie Edwina Cooke - Director

2 September 2022

Opinion

We have audited the financial statements of Arden Winch & Co Limited (the 'company') for the year ended 31 December 2021 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 2021 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 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 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 Strategic Report and the Directors' Report, 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 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 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 three, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- minimal reliance was placed upon the operating effectiveness of internal controls in the design and performance of our substantive procedures;

- discussions were held with management considering known or suspected non-compliance with laws, regulations and fraud;

- journal entries were reviewed for any entries made outside the ordinary reporting process with particular emphasis on those with unusual account combinations, entries crediting revenue and those without specific descriptions;

- management assumptions in their significant accounting estimates were challenged and scrutinised.

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 from 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.

Other matters

Comparative information in the financial statements is derived from the company's prior period financial statements which were not audited.

However, we have observed a physical stock count at the prior year end date and also carried out normal year end audit procedures regarding stock existence, condition and cut off, in relation to stock movements.

We have also obtained sufficient evidence in relation to all other opening balances, and, after the restatement of the prior year balances, to reflect the property revaluations, we are not aware of any possible material misstatements.

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.

Robert Hampstead (Senior Statutory Auditor)

for and on behalf of Landin Wilcock & Co

Statutory Auditor

68 Queen Street

Sheffield

South Yorkshire

S1 1WR

7 September 2022

TURNOVER

3

7,788,397

12,563,306

Cost of sales

(5,307,984

)

(8,648,376

)

GROSS PROFIT

2,480,413

3,914,930

Administrative expenses

(1,936,941

)

(2,423,617

)

543,472

1,491,313

Other operating income

50,238

96,315

OPERATING PROFIT

5

593,710

1,587,628

Gain/loss on revaluation of investment property

67,728

195,973

661,438

1,783,601

Interest payable and similar expenses

6

-

(7

)

PROFIT BEFORE TAXATION

661,438

1,783,594

Tax on profit

7

(145,587

)

(251,683

)

PROFIT FOR THE FINANCIAL YEAR

515,851

1,531,911

PROFIT FOR THE YEAR

515,851

1,531,911

OTHER COMPREHENSIVE INCOME

Surplus on property revaluation

132,051

177,385

Income tax relating to other comprehensive income

(20,249

)

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

111,802

177,385

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,709,296

Note

Prior year adjustment

9

195,973

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT

823,626

FIXED ASSETS

Tangible assets

10

1,536,237

1,391,233

Investment property

11

745,000

677,272

2,281,237

2,068,505

CURRENT ASSETS

Stocks

12

890,570

1,123,510

Debtors

13

1,115,118

1,833,666

Cash at bank and in hand

1,606,918

785,864

3,612,606

3,743,040

CREDITORS

Amounts falling due within one year

14

(1,377,663

)

(1,738,982

)

NET CURRENT ASSETS

2,234,943

2,004,058

TOTAL ASSETS LESS CURRENT LIABILITIES

4,516,180

4,072,563

PROVISIONS FOR LIABILITIES

16

(84,984

)

(30,324

)

NET ASSETS

4,431,196

4,042,239

CAPITAL AND RESERVES

Called up share capital

17

90,415

90,415

Share premium

18

8,243

8,243

Revaluation reserve

18

410,996

299,422

Capital redemption reserve

18

3,510

3,510

Retained earnings

18

3,918,032

3,640,649

SHAREHOLDERS' FUNDS

4,431,196

4,042,239

The financial statements were approved by the Board of Directors and authorised for issue on 2 September 2022 and were signed on its behalf by:

Mr Steven Barker - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 January 2020

90,415

2,124,014

8,243

Changes in equity

Profit for the year

-

1,335,938

-

Other comprehensive income

-

229

-

Total comprehensive income

-

1,336,167

-

Dividends

-

(15,505

)

-

Total transactions with owners, recognised directly in equity

-

(15,505

)

-

Balance at 31 December 2020

90,415

3,444,676

8,243

Prior year adjustment

-

195,973

-

As restated

90,415

3,640,649

8,243

Changes in equity

Profit for the year

-

515,851

-

Other comprehensive income

-

228

-

Total comprehensive income

-

516,079

-

Dividends

-

(238,696

)

-

Total transactions with owners, recognised directly in equity

-

(238,696

)

-

Balance at 31 December 2021

90,415

3,918,032

8,243

Capital

Revaluation

redemption

Total

reserve

reserve

equity

£

£

£

Balance at 1 January 2020

122,266

3,510

2,348,448

Changes in equity

Profit for the year

-

-

1,335,938

Other comprehensive income

177,156

-

177,385

Total comprehensive income

177,156

-

1,513,323

Dividends

-

-

(15,505

)

Total transactions with owners, recognised directly in equity

-

-

(15,505

)

Balance at 31 December 2020

299,422

3,510

3,846,266

Prior year adjustment

-

-

195,973

As restated

299,422

3,510

4,042,239

Changes in equity

Profit for the year

-

-

515,851

Other comprehensive income

111,574

-

111,802

Total comprehensive income

111,574

-

627,653

Dividends

-

-

(238,696

)

Total transactions with owners, recognised directly in equity

-

-

(238,696

)

Balance at 31 December 2021

410,996

3,510

4,431,196

Cash flows from operating activities

Cash generated from operations

1

1,337,908

888,827

Interest element of hire purchase or finance lease rental payments paid

-

(7

)

Tax paid

(221,359

)

(7,666

)

Net cash from operating activities

1,116,549

881,154

Cash flows from investing activities

Purchase of tangible fixed assets

(56,799

)

(30,140

)

Sale of tangible fixed assets

-

458

Net cash from investing activities

(56,799

)

(29,682

)

Cash flows from financing activities

Capital repayments in year

-

(1,278

)

Equity dividends paid

(238,696

)

(15,505

)

Net cash from financing activities

(238,696

)

(16,783

)

Increase in cash and cash equivalents

821,054

834,689

Cash and cash equivalents at beginning of year

2

785,864

(48,825

)

Cash and cash equivalents at end of year

2

1,606,918

785,864

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31/12/21

31/12/20

as restated

£

£

Profit before taxation

661,438

1,783,594

Depreciation charges

43,846

36,868

Profit on disposal of fixed assets

-

(218

)

Gain on revaluation of fixed assets

(67,728

)

(195,973

)

Finance costs

-

7

637,556

1,624,278

Decrease/(increase) in stocks

232,940

(429,044

)

Decrease/(increase) in trade and other debtors

717,790

(941,836

)

(Decrease)/increase in trade and other creditors

(250,378

)

635,429

Cash generated from operations

1,337,908

888,827

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2021

31/12/21

1/1/21

£

£

Cash and cash equivalents

1,606,918

785,864

Year ended 31 December 2020

31/12/20

1/1/20

as restated

£

£

Cash and cash equivalents

785,864

6,022

Bank overdrafts

-

(54,847

)

785,864

(48,825

)

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/21

Cash flow

At 31/12/21

£

£

£

Net cash

Cash at bank and in hand

785,864

821,054

1,606,918

785,864

821,054

1,606,918

Total

785,864

821,054

1,606,918

1.	STATUTORY INFORMATION

Arden Winch & 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 (£).

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and evaluated and are based upon historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Stock provisioning

The company is engaged in the sale and distribution of personal protective equipment, and as a result, it is necessary to consider the recoverability of the cost inventory and the associated provisioning required. When calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability.

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 factors including the current credit rating of the debtor, the ageing profile of the debtor and historical experience.

Turnover

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers. Revenue is recognised when the services are rendered, goods are delivered or work is complete.

Revenue from these services are recognised when:

- the company has transferred to a buyer the significant risks and rewards of ownership of the goods and services;

- the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control of the goods and services sold;

- the amount of revenue can be measured reliably;

- it is probable that the economic benefits associated with the transaction will flow to the company;

- the costs to be incurred in respect of the transaction can be measured reliably; and

- the stage of completion of the transaction at the balance sheet date can be measured reliably.

Any amounts received in advance are recorded as accrued liabilities until services are rendered to customers or goods are delivered.

Tangible fixed assets

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

Freehold property

-

1% on cost/revaluation

Short leasehold

-

1% on cost/revaluation

Fixtures and fittings

-

33% on cost and 10% on reducing balance

Motor vehicles

-

25% on reducing balance