Wintle Heating and Plumbing Limited - Limited company accounts 22.3

REGISTERED NUMBER: 00885205 (England and Wales)

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 30 September 2022

for

WINTLE HEATING AND PLUMBING LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

P P Wintle

M J Cross

S M Layt

M Hayes

N Peat

REGISTERED OFFICE:

19a Mansion Close

Moulton Park Industrial Estate

Northampton

Northamptonshire

NN3 6RU

REGISTERED NUMBER:

00885205 (England and Wales)

AUDITORS:

Elsby & Co (Sywell) Ltd

Chartered Accountants

and Registered Auditors

Thistle Down Barn

Holcot Lane

Sywell

Northampton

Northamptonshire

NN6 0BG

The directors present their strategic report for the year ended 30 September 2022.

REVIEW OF BUSINESS

The principal activity of the Company continues to be plumbing, heating and electrical engineers providing

services to the house building sector.

Turnover in the year amounted to £11.8m (2021 - 10.6m) an increase of 11%.

The Directors continue to maintain strong relationships with existing customers and suppliers and has a policy of continued training and development in order to ensure a skilled workforce supplying quality workmanship.

The year proved to be another challenging one for the Company, because of severe inflationary pressures on materials. The company enters into long term contracts with its customers, making it difficult to quickly pass on cost increases to its customers. During this year, cost prices have risen quickly, and substantially, creating pressures on achieving margins. The company has adapted to these pressures, which were first felt in the previous year, by re-negotiating contracts and building in measures to allow it to adapt. Additionally, there has been a severe shortage of skilled labour, and the company has adapted to this by employing higher numbers of apprentices.

Despite the difficult trading conditions, the directors are pleased with the performance and feel that the company is well placed to trade successfully for the foreseeable future, although there is uncertainty of future demand for new houses.

The directors are also pleased that the latest actuarial valuation of its Defined Benefit pension scheme has shown a surplus of £516k, which has not been recognised in the accounts in order to take a prudent approach.

PRINCIPAL RISKS AND UNCERTAINTIES

The Directors continually review the possible risks to the business. Where necessary, risks to the Company are

covered by insurance. External factors which may affect the business include the level of economic activity in the

United Kingdom in respect of the housing market, Government legislation and the recruitment and retention of a

skilled workforce.

Defined benefit pension scheme

The company operates a defined benefit pension scheme which has an annual actuarial valuation, which determines the amount of future contributions required from the company. This can be subject to investment performance, mortality and mortality rates, and changes in actuarial valuation standards. The company manages this risk by retaining a high cash balance to cover any future requirements. The company no longer provides this pension as a benefit to current employees and it exists only to service historical commitments.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICY

Cash flow management is a key area, cash flow forecasts are prepared, monitored and continually updated to

reflect current and anticipated turnover and to ensure that liabilities can be met when they become due.

The Company's principal financial instruments comprise bank balances, of trade creditors and receivables. The

main risk is from trade receivables and retentions; the Company maintains strong relationships in order to

achieve timely receipt of amounts due.

Trade creditors risk is managed by ensuring that sufficient funds are available to meet the amounts due.

FINANCIAL KEY PERFORMANCE INDICATORS

Turnover £11,865,269 (2021: £10,689,577)

Gross Profit % 15.81% (2021: 13.05%)

EBITDA (Profit before interest, tax, depreciation and amortisation) £385,013 profit (2021: £(123,699) loss))

Net assets £1,770,626 (2021: £1,364,000).

Turnover has increased by £1.1m which is an increase of 11% based on 2021. The 2020 turnover was £8.3m (which was covid affected).

The gross profit % has increased by 2.76% but remains below the rate in previous years. This reflects an improvement in the ability to recover cost increases from customers.

EBITDA has increased by £508.7k. The main reason for this increase is the rise in gross profit, as detailed above, together with tight control of overheads.

Net assets have increased by £406.6k. The company made a trading profit in the year and this was further aided by a reduction in the defined benefit pension scheme liability of £397k.

ON BEHALF OF THE BOARD:

P P Wintle - Director

6 March 2023

The directors present their report with the financial statements of the company for the year ended 30 September 2022.

DIVIDENDS

An interim dividend of 8.17 per share was paid on 26 September 2022. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30 September 2022 will be £ 120,000 .

FUTURE DEVELOPMENTS

In the current uncertain economic environment, growth is dependent on the housebuilding market, which is uncertain. The Company is focusing on stability whilst these conditions prevail.

DIRECTORS

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

P P Wintle

M J Cross

S M Layt

M Hayes

Other changes in directors holding office are as follows:

P Hilliard - resigned 31 December 2021

N Peat - appointed 1 August 2022

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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). 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Elsby & Co (Sywell) Ltd, will be proposed for re-appointment and appropriate arrangements have been put in place for them to be reappointed as auditor in the absence of an Annual General Meeting.

ON BEHALF OF THE BOARD:

P P Wintle - Director

6 March 2023

Opinion

We have audited the financial statements of Wintle Heating and Plumbing Limited (the 'company') for the year ended 30 September 2022 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 30 September 2022 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 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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 four, 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:

We considered the nature of the company's industry and its control environment, and discussed the Company's policies and procedures relating to fraud and compliance with laws and regulations.

We obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the key laws and regulations that:

-

had a direct effect on the determination of material amounts and disclosures in the financial statements; and

-

do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs ( UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

-

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

-

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

-

enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with 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.

Carl Elsby ACA (Senior Statutory Auditor)

for and on behalf of Elsby & Co (Sywell) Ltd

Chartered Accountants

and Registered Auditors

Thistle Down Barn

Holcot Lane

Sywell

Northampton

Northamptonshire

NN6 0BG

6 March 2023

TURNOVER

4

11,865,269

10,689,577

Cost of sales

9,989,599

9,294,751

GROSS PROFIT

1,875,670

1,394,826

Administrative expenses

1,489,100

1,566,824

386,570

(171,998

)

Other operating income

-

3,805

OPERATING PROFIT/(LOSS)

6

386,570

(168,193

)

Interest receivable and similar income

7

736

125

387,306

(168,068

)

Other finance costs

19

6,000

12,000

PROFIT/(LOSS) BEFORE TAXATION

381,306

(180,068

)

Tax on profit/(loss)

8

54,430

(54,665

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

326,876

(125,403

)

OTHER COMPREHENSIVE INCOME

Actuarial gains/(losses) on defined

benefit pension

299,000

446,000

Movement of deferred tax relating to

pension deficit

(99,250

)

(134,500

)

Income tax relating to components of other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

199,750

311,500

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

526,626

186,097

FIXED ASSETS

Tangible assets

11

92,951

73,795

CURRENT ASSETS

Stocks

12

647,497

607,638

Debtors

13

2,111,007

2,237,353

Cash at bank and in hand

1,408,670

981,458

4,167,174

3,826,449

CREDITORS

Amounts falling due within one year

14

2,473,572

2,139,244

NET CURRENT ASSETS

1,693,602

1,687,205

TOTAL ASSETS LESS CURRENT LIABILITIES

1,786,553

1,761,000

PROVISIONS FOR LIABILITIES

16

(15,927

)

-

PENSION LIABILITY

19

-

(397,000

)

NET ASSETS

1,770,626

1,364,000

CAPITAL AND RESERVES

Called up share capital

17

14,680

14,680

Capital redemption reserve

18

5,320

5,320

Retained earnings

18

1,750,626

1,344,000

SHAREHOLDERS' FUNDS

1,770,626

1,364,000

The financial statements were approved by the Board of Directors and authorised for issue on 6 March 2023 and were signed on its behalf by:

P P Wintle - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 October 2020

14,680

1,207,903

5,320

1,227,903

Changes in equity

Deficit for the year

-

(125,403

)

-

(125,403

)

Other comprehensive income

-

311,500

-

311,500

Total comprehensive income

-

186,097

-

186,097

Dividends

-

(50,000

)

-

(50,000

)

Balance at 30 September 2021

14,680

1,344,000

5,320

1,364,000

Changes in equity

Profit for the year

-

326,876

-

326,876

Other comprehensive income

-

199,750

-

199,750

Total comprehensive income

-

526,626

-

526,626

Dividends

-

(120,000

)

-

(120,000

)

Balance at 30 September 2022

14,680

1,750,626

5,320

1,770,626

1.	STATUTORY INFORMATION

Wintle Heating and Plumbing 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 principal activity of the Company during the year was the installation of domestic and industrial heating and plumbing appliances and electrical contracting, mainly in the new build housing market.

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.

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 paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirement of paragraph 33.7.

This information is included in the consolidated financial statements of Wintle Heating and Plumbing Holdings Limited as at 30 September 2021 and these financial statements may be obtained from Companies House.

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all the following conditions are satisfied:

- the Company has transferred the significant risks and rewards of ownership to the buyer

- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods 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; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably

- it is probable that the Company will receive the consideration due under the contract

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost included expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value of their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Motor vehicles

- 2 or 4 years

Fixture and fittings

- 4 or 5 years

Computer equipment

- 4 or 5 years

Portable buildings

- 4 years

The assets' residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount if reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Taxation

Taxation for the year 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 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.

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 benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The liability recognised in the Balance sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the balance sheet date less the fair value of plan assets at the balance sheet date (if any) out of which the obligations are to be settled.

The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').

The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Company's policy for similarly held assets. This included the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.

The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:

a) The increase in net pension benefit liability arising from employee service during the period; and

b) The cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'

Long-term contracts

The attributable profits on long term contracts are recognised once their outcome can be assessed with reasonable certainty. The profit recognised reflects the proportion of work completed to date on the contract.

Full provision is made for losses on all contracts in the year in which the loss is first foreseen.

Going concern

These financial statements have been prepared on the going concern basis, which the directors believe to be appropriate because the company has net assets of £1,770,626 (2021 £1,364,000) and has traded profitably in challenging conditions. Additionally, its Defined Benefit pension scheme reported a surplus of £516,000 as at 30 September 2022 (which was not recognised in these accounts). The directors have reviewed the working capital requirements of the company for a period of at least 12 months from the anticipated date of signing these financial statements. The directors have considered the current housing market, and the likely impact of inflation and believe that these factors are not likely to have a significant effect.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company's accounting policies, which are described in note 2, management is required to make judgments, estimated and assumptions about the carrying values of assets and liabilities that are not readily separated from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimated are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The present value of the defined benefit pension scheme liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changed in these assumptions, which are disclosed in note 18, will impact the carrying amount of the pension liability.

The Company calculates a provision for expected remedial works based on an estimated proportion of costs including salaries and materials which is then applied to the trade debtors balance at the year end. The calculation for the provision is based on a number of estimates and judgements which are based on historic factors.

4.

TURNOVER

The whole of the turnover is attributable to the principal activity of the Company.

All turnover arose within the United Kingdom.

5.	EMPLOYEES AND DIRECTORS

2022

2021

£

£

Wages and salaries

3,172,551

3,144,356

Social security costs

362,459

339,517

Other pension costs

132,634

132,055

3,667,644

3,615,928

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

2022

2021

Direct

52

60

Staff

20

22

Management

4

5

76

87

2022

2021

£

£

Directors' remuneration

259,027

238,786

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

Defined benefit schemes

2

2

Information regarding the highest paid director is as follows:

2022

2021

£

£

Emoluments etc

60,500

61,518

6.	OPERATING PROFIT/(LOSS)

The operating profit (2021 - operating loss) is stated after charging/(crediting):

2022

2021

£

£

Hire of plant and machinery

16,830

20,107

Other operating leases

25,000

25,000

Depreciation - owned assets

38,533

44,495

Profit on disposal of fixed assets

(40,090

)

(4,248

)

Auditors' remuneration

21,975

18,500

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

2022

2021

£

£

Deposit account interest

736

125

8.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2022

2021

£

£

Current tax:

UK corporation tax

39,897

(58,908

)

Deferred tax

14,533

4,243

Tax on profit/(loss)

54,430

(54,665

)

Reconciliation of total tax charge/(credit) included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2022

2021

£

£

Profit/(loss) before tax

381,306

(180,068

)

Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

72,448

(34,213

)

Effects of:

Expenses not deductible for tax purposes

675

84

Change in pension fund prepayment leading to an increase (decrease) in tax

(18,620

)

(17,290

)

Short term timing differences leading to an increase (decrease) in taxation

(288

)

(1,452

)

Changes in provision leading to an increase (decrease) in tax charge

215

(3,002

)

Losses not yet utilised

-

1,208

Total tax charge/(credit)

54,430

(54,665

)

Tax effects relating to effects of other comprehensive income

2022

Gross

Tax

Net

£

£

£

Actuarial gains/(losses) on defined

benefit pension

299,000

-

299,000

Movement of deferred tax relating to

pension deficit

(99,250

)

-

(99,250

)

199,750

-

199,750

2021

Gross

Tax

Net

£

£

£

Actuarial gains/(losses) on defined

benefit pension

446,000

-

446,000

Movement of deferred tax relating to

pension deficit

(134,500

)

-

(134,500

)

311,500

-

311,500

9.

DIVIDENDS

2022

2021

£

£

Ordinary shares of £1 each

Interim

120,000

50,000

10.	GOVERNMENT GRANTS AND ASSISTANCE

During the period, the Company has not received government support designed to mitigate the impact of COVID-19.

In the UK, the Government has provided funding towards the salary costs of employees who have been 'furloughed' through the Coronavirus Job Retention Scheme. This funding meets the definition of a government grant under Section 24 Government Grants of FRS 102 and a total of Nil (2021 - £3,805) has been recorded within other income.

11.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

and

Motor

Computer

property

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 October 2021

92,050

40,569

350,002

93,155

575,776

Additions

-

-

70,261

3,278

73,539

Disposals

-

-

(118,761

)

-

(118,761

)

At 30 September 2022

92,050

40,569

301,502

96,433

530,554

DEPRECIATION

At 1 October 2021

91,620

35,204

291,426

83,731

501,981

Charge for year

394

1,515

31,151

5,473

38,533

Eliminated on disposal

-

-

(102,911

)

-

(102,911

)

At 30 September 2022

92,014

36,719

219,666

89,204

437,603

NET BOOK VALUE

At 30 September 2022

36

3,850

81,836

7,229

92,951

At 30 September 2021

430

5,365

58,576

9,424

73,795

12.

STOCKS

2022

2021

£

£

Raw materials and consumables

647,497

607,638

13.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

1,922,904

1,904,123

Other debtors

121,890

113,197

Tax

-

58,908

Deferred tax asset

-

97,856

Prepayments and accrued income

66,213

63,269

2,111,007

2,237,353