Xeinz Group Limited - Limited company accounts 22.3

REGISTERED NUMBER: 00479009 (England and Wales)

XEINZ GROUP LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

to

4

Report of the Independent Auditors

5

to

7

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Statement of Financial Position

10

Company Statement of Financial Position

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

14

Notes to the Consolidated Statement of Cash Flows

15

Notes to the Consolidated Financial Statements

16

to

28

DIRECTOR:

C L Farrow

SECRETARY:

Mrs E J Corrigan

REGISTERED OFFICE:

Welland Business Park

Clay Lake

Spalding

Lincolnshire

PE12 6BL

REGISTERED NUMBER:

00479009 (England and Wales)

AUDITORS:

Duncan & Toplis Limited

Enterprise Way

Pinchbeck

Spalding

Lincolnshire

PE11 3YR

The director presents his strategic report of the company and the group for the year ended 31 March 2022.

REVIEW OF BUSINESS

The groups trading has improved. COVID-19 has largely been forgotten, although some uncertainty remains in supply chains but the increase in prices and a declining GBP/USD will boost performance going forwards.

The balance sheet remains robust, and the group will invest in additional facilities, employees, equipment and IT projects across the period to improve productivity and margin.

Extended supplier lead-times continue to hurt volumes, however it may improve by the end of this financial year.

Through the coming period the group intends to try to support its net margins in the difficult environment by focusing on employee productivity, material costs and overheads.

PRINCIPAL RISKS AND UNCERTAINTIES

The group faces risk from a financial market movements, principally a strengthening pound should it materialise later in the year.

Despite the risks, the group is well capitalized, has low net borrowing and a strong team to drive it forwards. Compared to our competitors, we feel the risks are limited and the outcome is likely to be bright in the medium term.

ON BEHALF OF THE BOARD:

C L Farrow - Director

19 October 2022

The director presents his report with the financial statements of the company and the group for the year ended 31 March 2022.

DIVIDENDS

Dividends were paid totalling £34.72 on A ordinary shares, £54.91 and £231.21 on B ordinary shares and £35.39 and £231.30 on C ordinary shares.

DIRECTORS

C L Farrow has held office during the whole of the period from 1 April 2021 to the date of this report.

Other changes in directors holding office are as follows:

E J R Farrow - resigned 8 February 2022

STREAMLINED ENERGY AND CARBON REPORTING

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:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit.This included the identification and testing of unusual material journal entries and Challenging management on key estimates,assumptions and judgements made in the preparation of the financial statements. These key areas of uncertainty are disclosed in the accounting policies.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, employment laws and quality management system.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included confirmation of valid ISO:9001 accreditation, a review of the group's employment and health and safety controls, to ensure no areas of non-compliance. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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.

ON BEHALF OF THE BOARD:

C L Farrow - Director

19 October 2022

Opinion

We have audited the financial statements of Xeinz Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 group's and of the parent company affairs as at 31 March 2022 and of the group's 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 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on pages three and four, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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:

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:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit.This included the identification and testing of unusual material journal entries and Challenging management on key estimates,assumptions and judgements made in the preparation of the financial statements. These key areas of uncertainty are disclosed in the accounting policies.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, employment laws and quality management system.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included confirmation of valid ISO:9001 accreditation, a review of the group's employment and health and safety controls, to ensure no areas of non-compliance. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Alistair Main FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Limited

Enterprise Way

Pinchbeck

Spalding

Lincolnshire

PE11 3YR

19 October 2022

TURNOVER

3

15,455,849

16,519,372

Cost of sales

13,681,928

15,184,515

GROSS PROFIT

1,773,921

1,334,857

Distribution costs

7,465

-

Administrative expenses

1,395,751

1,200,807

1,403,216

1,200,807

370,705

134,050

Other operating income

128,644

42,208

OPERATING PROFIT

5

499,349

176,258

Loan balance written off

6

202,179

64,680

297,170

111,578

Interest receivable and similar income

73,202

64,680

370,372

176,258

Interest payable and similar expenses

7

67,890

73,142

PROFIT BEFORE TAXATION

302,482

103,116

Tax on profit

8

(40,728

)

43,493

PROFIT FOR THE FINANCIAL YEAR

343,210

59,623

Profit attributable to:

Owners of the parent

340,505

66,397

Non-controlling interests

2,705

(6,774

)

343,210

59,623

PROFIT FOR THE YEAR

343,210

59,623

OTHER COMPREHENSIVE INCOME

Acquisition of NCI

(4,044

)

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(4,044

)

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

59,623

Note

Prior year adjustment

11

(133,199

)

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT

205,967

Total comprehensive income attributable to:

Owners of the parent

203,262

66,397

Non-controlling interests

2,705

(6,774

)

205,967

59,623

FIXED ASSETS

Intangible assets

12

24,894

28,005

Tangible assets

13

2,538,752

2,132,796

Investments

14

-

-

2,563,646

2,160,801

CURRENT ASSETS

Stocks

15

4,666,649

3,078,732

Debtors

16

3,473,845

3,928,360

Cash at bank and in hand

1,208,990

317,821

9,349,484

7,324,913

CREDITORS

Amounts falling due within one year

17

5,866,005

3,245,081

NET CURRENT ASSETS

3,483,479

4,079,832

TOTAL ASSETS LESS CURRENT LIABILITIES

6,047,125

6,240,633

CREDITORS

Amounts falling due after more than one year

18

(936,362

)

(1,347,908

)

PROVISIONS FOR LIABILITIES

23

(174,379

)

(148,671

)

NET ASSETS

4,936,384

4,744,054

CAPITAL AND RESERVES

Called up share capital

24

1,152

1,152

Revaluation reserve

25

582,255

582,255

Capital redemption reserve

25

3,450

3,450

Retained earnings

25

4,349,527

4,163,946

SHAREHOLDERS' FUNDS

4,936,384

4,750,803

NON-CONTROLLING INTERESTS

-

(6,749

)

TOTAL EQUITY

4,936,384

4,744,054

The financial statements were approved by the director and authorised for issue on 19 October 2022 and were signed by:

C L Farrow - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

1,622,958

1,685,681

Investments

14

1,283,253

1,283,252

2,906,211

2,968,933

CURRENT ASSETS

Debtors

16

1,396,874

1,130,598

Cash at bank

58,159

9,314

1,455,033

1,139,912

CREDITORS

Amounts falling due within one year

17

678,091

465,563

NET CURRENT ASSETS

776,942

674,349

TOTAL ASSETS LESS CURRENT LIABILITIES

3,683,153

3,643,282

CREDITORS

Amounts falling due after more than one year

18

(515,282

)

(607,168

)

PROVISIONS FOR LIABILITIES

23

(61,377

)

(67,237

)

NET ASSETS

3,106,494

2,968,877

CAPITAL AND RESERVES

Called up share capital

24

1,152

1,152

Revaluation reserve

25

439,748

439,748

Capital redemption reserve

25

3,450

3,450

Retained earnings

25

2,662,144

2,524,527

SHAREHOLDERS' FUNDS

3,106,494

2,968,877

Company's profit for the financial year

288,497

125,959

The financial statements were approved by the director and authorised for issue on 19 October 2022 and were signed by:

C L Farrow - Director

Called up

share

Retained

Revaluation

capital

earnings

reserve

£

£

£

Balance at 1 April 2020

1,152

4,248,429

582,255

Changes in equity

Dividends

-

(150,880

)

-

Total comprehensive income

-

199,596

-

1,152

4,297,145

582,255

Acquisition of non-controlling interest

-

-

-

Balance at 31 March 2021

1,152

4,297,145

582,255

Prior year adjustment

-

(133,199

)

-

As restated

1,152

4,163,946

582,255

Changes in equity

Dividends

-

(150,880

)

-

Total comprehensive income

-

336,461

-

1,152

4,349,527

582,255

Acquisition of non-controlling interest

-

-

-

Balance at 31 March 2022

1,152

4,349,527

582,255

Capital

redemption

Non-controlling

Total

reserve

Total

interests

equity

£

£

£

£

Balance at 1 April 2020

3,450

4,835,286

-

4,835,286

Changes in equity

Dividends

-

(150,880

)

-

(150,880

)

Total comprehensive income

-

199,596

(6,774

)

192,822

3,450

4,884,002

(6,774

)

4,877,228

Acquisition of non-controlling interest

-

-

25

25

Balance at 31 March 2021

3,450

4,884,002

(6,749

)

4,877,253

Prior year adjustment

-

(133,199

)

-

(133,199

)

As restated

3,450

4,750,803

(6,749

)

4,744,054

Changes in equity

Dividends

-

(150,880

)

-

(150,880

)

Total comprehensive income

-

336,461

2,705

339,166

3,450

4,936,384

(4,044

)

4,932,340

Acquisition of non-controlling interest

-

-

4,044

4,044

Balance at 31 March 2022

3,450

4,936,384

-

4,936,384

Called up

Capital

share

Retained

Revaluation

redemption

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 April 2020

1,152

2,549,448

439,748

3,450

2,993,798

Changes in equity

Dividends

-

(150,880

)

-

-

(150,880

)

Total comprehensive income

-

125,959

-

-

125,959

Balance at 31 March 2021

1,152

2,524,527

439,748

3,450

2,968,877

Changes in equity

Dividends

-

(150,880

)

-

-

(150,880

)

Total comprehensive income

-

288,497

-

-

288,497

Balance at 31 March 2022

1,152

2,662,144

439,748

3,450

3,106,494

Cash flows from operating activities

Cash generated from operations

1

1,186,428

(1,737,954

)

Interest paid

(58,861

)

(71,155

)

Interest element of hire purchase payments paid

(9,029

)

(1,987

)

Government grants

128,644

42,208

Tax paid

(67,514

)

(143,945

)

Net cash from operating activities

1,179,668

(1,912,833

)

Cash flows from investing activities

Purchase of intangible fixed assets

-

(31,117

)

Purchase of tangible fixed assets

(672,259

)

(180,566

)

Purchase of fixed asset investments

-

83,250

Sale of tangible fixed assets

26,656

41,500

Sale of fixed asset investments

-

(63,516

)

Acquisitions of subsidiaries

-

(1,000

)

Acquisition of non-controlling interest

-

25

Interest received

73,202

64,680

Net cash from investing activities

(572,401

)

(86,744

)

Cash flows from financing activities

New loans in year

2,991,144

2,231,797

Loan repayments in year

(3,056,418

)

(121,867

)

New Hire Purchase take out

660,175

-

Capital repayments in year

(162,535

)

(14,022

)

Share issue

198

-

Directors loan repayments

-

(65,266

)

Equity dividends paid

(150,880

)

(150,880

)

Net cash from financing activities

281,684

1,879,762

Increase/(decrease) in cash and cash equivalents

888,951

(119,815

)

Cash and cash equivalents at beginning of year

2

317,821

437,636

Cash and cash equivalents at end of year

2

1,206,772

317,821