Brightwake Limited - Limited company accounts 22.3
Brightwake Limited - Limited company accounts 22.3
| REGISTERED NUMBER: 01356034 (England and Wales) |
| Group Strategic Report, Report of the Directors and |
| Consolidated Financial Statements for the Year Ended 31 March 2022 |
| for |
| Brightwake Limited |
| Brightwake Limited (Registered number: 01356034) |
| Contents of the Consolidated Financial Statements |
| for the Year Ended 31 March 2022 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 5 |
| Report of the Independent Auditors | 6 |
| Consolidated Income Statement | 10 |
| Consolidated Other Comprehensive Income | 11 |
| Consolidated Balance Sheet | 12 |
| Company Balance Sheet | 13 |
| Consolidated Statement of Changes in Equity | 14 |
| Company Statement of Changes in Equity | 15 |
| Consolidated Cash Flow Statement | 16 |
| Notes to the Consolidated Cash Flow Statement | 17 |
| Notes to the Consolidated Financial Statements | 18 |
| Brightwake Limited |
| Company Information |
| for the Year Ended 31 March 2022 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants and Statutory Auditors |
| 5 Barnfield Crescent |
| Exeter |
| Devon |
| EX1 1QT |
| Brightwake Limited (Registered number: 01356034) |
| Group Strategic Report |
| for the Year Ended 31 March 2022 |
| The directors present their strategic report of the company and the group for the year ended 31 March 2022. |
| The year, with the ongoing pandemic was always going to be a tough one and as a Board our key goal was, as it was at the 31st March 2021, to simply get the business through this the very difficult period so that we could hopefully go into the 22/23 Financial Year re-establishing our long-term goals of building upon our original expertise in textiles technology to transform Brightwake into one of the best inventors, developers and producers of state-of-the-art medical dressings and devices under our own brands, Advancis Medical, Advancis Surgical and Advancis Veterinary as well as for third parties as a sub-contract manufacturer. The year has been particular challenging; not only did we have the continuing complication of operating within a pandemic situation, but even as those conditions eased, we were then impacted with the global logistics issues and rapidly escalating prices across the whole spectrum of operating costs. |
| The pandemic significantly reduced globally elective surgeries where most of our Medical and Surgical products are used, even with the pandemic abating this backlog continues to grow. In the first year of the pandemic we saw increased demand for our Class 1 Endotracheal and Tracheostomy Ranges but this has tailed off as the excess hospitalisations thankfully reduced. |
| Despite the difficulties, we maintained our policy of continued re-investment in the group's infrastructure and R&D pipeline in order to stay at the forefront of innovative product development - for third parties as well as ourselves. We have also had to continue investing heavily in Regulatory and Quality in order to be fully compliant with the new Medical Device Regulations (MDR), replacing the Medical Device Directive (MDD) and in our Logistics with the continued Brexit and Supply chain issues. |
| At the outset of the pandemic we set a target to look to get through in the best position possible so that we could continue growth once things started to return to normal and this we have done. We always suspected that this would be more than a year problem and so it has proved to be, but we did get through it and with the benefit of hindsight we have returned in 22/23 to a position in line with where we were before the pandemic broke out. |
| The key group financial highlights are as follows: |
| All £ | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
| Turnover | 17.2m | 18.7m | 21.2m | 19.5m | 18.0m | 17.2m | 14.9m |
| Gross Profit Margin | 33% | 30% | 32% | 36% | 36% | 40% | 36% |
| Operating Profit/(Loss) | 108k | 336k | 425k | 845k | 340k | 644k | (224k | ) |
| Profit/(Loss) Before Tax | 96k | 184k | 358k | 692k | 313k | 597k | (184k | ) |
| Net Assets | 8.0m | 7.9m | 7.8m | 7.6m | 7.0m | 6.6m | 5.9m |
| It is further worth noting that the 2021 and 2022 gross profit margin above has been adjusted for furlough monies received. |
| Brightwake Limited (Registered number: 01356034) |
| Group Strategic Report |
| for the Year Ended 31 March 2022 |
| REVIEW OF BUSINESS |
| Turnover was down by £1.5m in the year (£4.0m across the two years of the pandemic) due to the reduced demands for Advanced Woundcare primarily as a result of delayed elective surgeries. All our sales areas in the UK either declined or were static, due to the same issues. The most noticeable change came in the Tracheostomy range dropping from £2.2m to £700k as the exceptional demand from the first year of the pandemic returned to a more normal level. Our German and Holland subsidiaries didn't suffer as much as a downturn as the UK with both showing a small increase in the year. Taking into account the change in the Tracheostomy range the underlying sales have not moved over the two years of the pandemic. The challenge in the year has been negotiating with our key customers to increase prices in line with the rapidly increasing costs we were and continue to be hit with. Better pricing on our OEM products helped sales grow by 5% from £5.3m to £5.6m helping to increase our gross margin. Despite regulatory approval now being granted on Surgical equipment sales remain low due to the extensive delays in operations across the world. |
| Our Sales split in the year saw the split between our own brands and OEM brands being 68% and 32% respectively a change from 71% and 29% in 2021. |
| Gross Margin is up 3% on 2021 to 33% as a result of the mix reversal from 2021 as well as increased prices starting to equalise the increased operating costs. |
| Profit in the year was impacted by the writing down of a bad debt of £75k linked to the demise of a company as a result of the pandemic that had an element of common ownership with the Group. The Group acquired a number of assets and parts of the order book from the liquidation of the company to create a new subsidiary Brightwake Fabrications Limited, This is unrelated to our Medical Device heritage but it does dovetail with our in-house engineering that produces our own bespoke production lines. Initial indications from the first periods of trading are that this will be a successful niche business within the Group. There was also a continued stock write down of £47k where the delay in sales has caused a number of raw materials to run out of shelf life with no real value in extending their life due to the switch from MDD to MDR. |
| During the last 12 months we have continued to see the expanded use of lowest price E-Auctions as part of the procurement process in several markets most notably in the UK with the NHS, which continues, despite the extraordinary price pressures being felt, to run a non-inflationary pricing model. This lowest cost/unit whilst giving an initial saving does not always factor in the full costs of the patient recovery pathway and potentially stifles quality and innovation in the development of new wound care. This is something we are now actively looking at in terms of how we may need to adapt and change both our existing product portfolio and downstream developments. |
| Outside of the Pandemic and in line with previous years it is the UK and EU regulatory change that is causing the greatest concern. The change from MDD to MDR will not only add cost but with the lack of Registered Body Capacity is likely to significantly slow or completely stop product development for the next 2-3 years. This to us as a developer of innovative products is of concern and will undoubtedly shift our focus to launching in the US rather than in Europe where the route to market through the FDA is significantly quicker. |
| Anticipated growth in our Surgical Brand was initially positive as we received product registrations but have then been pushed back by the delay in elective surgeries. We have completed some additional trials which will assist the several new distributors we have in place ready for when hospital access returns and surgeries start to come back on stream. Other new developments are also being delayed pending regulatory approval. |
| With limited travel we have not made any inroads into new markets although there continues to be a significant saving in costs. |
| The result for the year when adjusted for the bad debt write off saw the Group get through another year of the pandemic much in line with the first. Profit before tax at £96k (£171k before the Bad Debt) is marginally down on the 2021 figure of £184k. |
| In another year with a global healthcare crisis as well as regulatory uncertainty, we have kept our focus on developing in-house production lines to help control our costs of manufacturing countering the escalating prices of raw materials and freight. This has allowed us to be keep the business stable and to continue to produce high-specification products whilst competing with emerging markets. We will continue to keep things very much under control, the pandemic may be finishing but further global risks such as the war in Ukraine will continue to put pressure on the business. Where possible we will look for additional opportunities within the UK and across the globe as things start to normalise and look to get back to the levels we were at in 2020. |
| Brightwake Limited (Registered number: 01356034) |
| Group Strategic Report |
| for the Year Ended 31 March 2022 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The principal risk in the next 12 months is undoubtedly the war in Ukraine and the impact this will have on energy and raw material supplies. Post year end our fixed gas contract expired and we have seen a jump from £35k annually to £98k. Fortunately our electricity runs into the summer of 2023 and current indications are that energy prices by then will be reducing. Previous uncertainty in the Global Market and austerity measures affecting the Healthcare Industry whilst still of concern pale into insignificance in comparison. As at the end of last year there are still disruptions and escalating prices within the Global Supply Chain but these seem to be abating and going into the next year would appear to be a lower risk. |
| The continuing lack of capacity in the regulation of Medical Devices means the change from MDD to MDR remains a very real risk. Post year end this concern has been eased to some extent with the EU and UK decision to delay the change. |
| The company and group going into the pandemic was in a reasonably healthy position, we have got through the two years of the pandemic and come up the out the other side with a good order book and cash reserves this combined with strong links with our customers and suppliers, whilst maintaining continual control of operational costs will hopefully see us get a strong bounce back in the next year |
| OUTLOOK AND FUTURE DEVELOPMENTS |
| Our key intentions remain the same; establish Brightwake as a global market leader, continue developing our technology, establish Hemosep and the Advancis Surgical Brand as a surgical standard around the world, expand the Advancis Medical Brand in the UK and International Markets whilst bringing to market new and innovative Advanced Woundcare. |
| We have weathered the last two years and brought the group through a very difficult period. Whist the future still looks challenging, we can now go back to the 5 year plans that we had in March 2021 dust these off and look to move forward with them after a 2 year delay in the next financial year. |
| ON BEHALF OF THE BOARD: |
| Brightwake Limited (Registered number: 01356034) |
| Report of the Directors |
| for the Year Ended 31 March 2022 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 March 2022. |
| DIVIDENDS |
| A dividend of £8.0035 per share was paid on 13th July 2021 based upon the results for the year ended 31st March 2021. A dividend of £8.8928 per share was paid on 9th June 2022 based upon the results for the year ended 31st March 2022. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 April 2021 to the date of this report. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he 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 group's auditors are aware of that information. |
| AUDITORS |
| The auditors, Kirk Hills, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Brightwake Limited |
| Qualified Opinion |
| We have audited the financial statements of Brightwake 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 Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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, except for the possible effects of the matters described in the Basis for qualified opinion paragraph, the financial statements; |
| - give a true and fair view of the state of the company's affair's as at 31 March 2022 and its profit for the year; |
| - 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 qualified opinion |
| We were unable to attend the stocktake of the Holland subsidiary at 31 March 2021 due to the lockdown caused by the Covid 19 pandemic and thus did not observe the counting of physical stock at the year end. We were unable to satisfy ourselves by alternative means concerning the stock quantities held at 31 March 2021, which are included in the group balance sheet at £369,663, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary. If any adjustment were necessary this would impact the reported values for Current Assets and Profit in the financial statements to 31st March 2021. It would also impact the reported Profit in the financial statements to 31st March 2022. |
| We conducted our audit in accordance with International Standard on Auditing (UK) ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 qualified opinion. |
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Key audit matters |
| Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the stock quantities of £369,663 held at 31 March 2021 by the Holland subsidiary. We have concluded that where the other information refers to the stock balance or related balances such as cost of sales, it may be materially misstated for the same reason. |
| Report of the Independent Auditors to the Members of |
| Brightwake Limited |
| Opinions on other matters prescribed by the Companies Act 2006 |
| Except for the possible effects of the matter described in the basis for qualified opinion section of our report in our opinion, based on the work undertaken in the course on the audit: |
| - the information given in the Group Strategic Report and the Report of the Directors for the financial year for which |
| the financial statements are prepared is consistent with the financial statements; and |
| - the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable |
| legal requirements. |
| Matters on which we are required to report by exception |
| Except for the matter described in the basis for the qualified opinion section of our audit report, 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 Group Strategic Report or the Report of the Directors. |
| Arising solely from the limitation of scope of our audit work relating to stock, referred to above: |
| - we have not obtained all the information and explanations that are necessary for the purpose of our audit, and |
| - we were unable to determine whether adequate accounting records have been kept. |
| We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: |
| - 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. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| Report of the Independent Auditors to the Members of |
| Brightwake Limited |
| 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. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
| - | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
| - | we identified the laws and regulations applicable to the Company through discussions with the directors and other management, and from our commercial knowledge and experience; |
| - | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, medical device regulation, taxation legislation, employment, environmental and health and safety legislation; |
| - | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing correspondence with industry regulators, and inspecting legal correspondence; and |
| - | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
| 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 assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
| - | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
| - | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
| To address the risk of fraud through management bias and override of controls, we: |
| - | performed analytical procedures to identify any unusual or unexpected relationships; |
| - | tested journal entries to identify unusual transactions; |
| - | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
| - | investigated the rationale behind significant or unusual transactions. |
| In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
| - | agreeing financial statement disclosures to underlying supporting documentation; |
| - | reading the minutes of meetings of those charged with governance; |
| - | enquiring of management as to actual and potential litigation and claims; and |
| - | reviewing correspondence with HMRC, relevant regulators, and the Company's legal advisors. |
| There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
| Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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. |
| Report of the Independent Auditors to the Members of |
| Brightwake Limited |
| 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. |
| for and on behalf of |
| Chartered Accountants and Statutory Auditors |
| 5 Barnfield Crescent |
| Exeter |
| Devon |
| EX1 1QT |
| Brightwake Limited (Registered number: 01356034) |
| Consolidated |
| Income Statement |
| for the Year Ended 31 March 2022 |
| 31.3.22 | 31.3.21 |
| Notes | £ | £ |
| TURNOVER | 3 | 17,152,518 | 18,702,690 |
| Cost of sales | (11,689,717 | ) | (13,293,210 | ) |
| GROSS PROFIT | 5,462,801 | 5,409,480 |
| Distribution costs | (1,758,858 | ) | (1,584,149 | ) |
| Administrative expenses | (3,736,207 | ) | (3,631,706 | ) |
| (32,264 | ) | 193,625 |
| Other operating income | 4 | 141,004 | 142,788 |
| OPERATING PROFIT | 6 | 108,740 | 336,413 |
| Income from interest in associated undertakings |
6,000 |
6,000 |
| Interest receivable and similar income | 76 | 159 |
| 114,816 | 342,572 |
| Amounts written off investments | 7 | - | (144,054 | ) |
| 114,816 | 198,518 |
| Interest payable and similar expenses | 8 | (18,877 | ) | (13,986 | ) |
| PROFIT BEFORE TAXATION | 95,939 | 184,532 |
| Tax on profit | 9 | 108,174 | 13,182 |
| PROFIT FOR THE FINANCIAL YEAR |
| Profit attributable to: |
| Owners of the parent | 204,113 | 197,714 |
| Brightwake Limited (Registered number: 01356034) |
| Consolidated |
| Other Comprehensive Income |
| for the Year Ended 31 March 2022 |
| 31.3.22 | 31.3.21 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR | 204,113 | 197,714 |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
204,113 |
197,714 |
| Total comprehensive income attributable to: |
| Owners of the parent | 204,113 | 197,714 |
| Brightwake Limited (Registered number: 01356034) |
| Consolidated Balance Sheet |
| 31 March 2022 |
| 31.3.22 | 31.3.21 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 12 | 1,207,468 | 1,173,606 |
| Tangible assets | 13 | 885,567 | 1,021,767 |
| Investments | 14 | - | - |
| 2,093,035 | 2,195,373 |
| CURRENT ASSETS |
| Stocks | 15 | 4,012,828 | 3,329,352 |
| Debtors | 16 | 3,722,636 | 3,520,421 |
| Cash at bank and in hand | 1,114,898 | 1,510,757 |
| 8,850,362 | 8,360,530 |
| CREDITORS |
| Amounts falling due within one year | 17 | 2,913,579 | 2,439,894 |
| NET CURRENT ASSETS | 5,936,783 | 5,920,636 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
8,029,818 |
8,116,009 |
| CREDITORS |
| Amounts falling due after more than one year |
18 |
(38,582 |
) |
(117,441 |
) |
| PROVISIONS FOR LIABILITIES | 22 | (24,637 | ) | (116,029 | ) |
| NET ASSETS | 7,966,599 | 7,882,539 |
| CAPITAL AND RESERVES |
| Called up share capital | 23 | 15,000 | 15,000 |
| Retained earnings | 24 | 7,951,599 | 7,867,539 |
| SHAREHOLDERS' FUNDS | 7,966,599 | 7,882,539 |
| The financial statements were approved by the Board of Directors and authorised for issue on 29 March 2023 and were signed on its behalf by: |
| S Cotton - Director |
| Brightwake Limited (Registered number: 01356034) |
| Company Balance Sheet |
| 31 March 2022 |
| 31.3.22 | 31.3.21 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 12 |
| Tangible assets | 13 |
| Investments | 14 |
| CURRENT ASSETS |
| Stocks | 15 |
| Debtors | 16 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 17 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
18 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 22 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 23 |
| Retained earnings | 24 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 166,329 | 694,744 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Brightwake Limited (Registered number: 01356034) |
| Consolidated Statement of Changes in Equity |
| for the Year Ended 31 March 2022 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 April 2020 | 15,000 | 7,789,825 | 7,804,825 |
| Changes in equity |
| Dividends | - | (120,000 | ) | (120,000 | ) |
| Total comprehensive income | - | 197,714 | 197,714 |
| Balance at 31 March 2021 | 15,000 | 7,867,539 | 7,882,539 |
| Changes in equity |
| Dividends | - | (120,053 | ) | (120,053 | ) |
| Total comprehensive income | - | 204,113 | 204,113 |
| Balance at 31 March 2022 | 15,000 | 7,951,599 | 7,966,599 |
| Brightwake Limited (Registered number: 01356034) |
| Company Statement of Changes in Equity |
| for the Year Ended 31 March 2022 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 April 2020 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 March 2021 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 March 2022 |
| Brightwake Limited (Registered number: 01356034) |
| Consolidated Cash Flow Statement |
| for the Year Ended 31 March 2022 |
| 31.3.22 | 31.3.21 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 407,742 | 1,308,738 |
| Interest paid | 17 | (3,056 | ) |
| Interest element of hire purchase payments paid |
(18,894 |
) |
(10,930 |
) |
| Tax paid | (31,210 | ) | (62,623 | ) |
| Taxation refund | 71,994 | - |
| Net cash from operating activities | 429,649 | 1,232,129 |
| Cash flows from investing activities |
| Purchase of intangible fixed assets | (315,750 | ) | (312,324 | ) |
| Purchase of tangible fixed assets | (255,944 | ) | (71,866 | ) |
| Sale of tangible fixed assets | 208 | 1,250 |
| Interest received | 76 | 159 |
| Dividends received | 6,000 | 6,000 |
| Net cash from investing activities | (565,410 | ) | (376,781 | ) |
| Cash flows from financing activities |
| Asset refinance | - | 73,021 |
| Finance capital repayments in year | (95,553 | ) | (86,175 | ) |
| Amount withdrawn by directors | (44,492 | ) | (12,682 | ) |
| Equity dividends paid | (120,053 | ) | (120,000 | ) |
| Net cash from financing activities | (260,098 | ) | (145,836 | ) |
| (Decrease)/increase in cash and cash equivalents | (395,859 | ) | 709,512 |
| Cash and cash equivalents at beginning of year |
2 |
1,510,757 |
801,245 |
| Cash and cash equivalents at end of year | 2 | 1,114,898 | 1,510,757 |
| Brightwake Limited (Registered number: 01356034) |
| Notes to the Consolidated Cash Flow Statement |
| for the Year Ended 31 March 2022 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 31.3.22 | 31.3.21 |
| £ | £ |
| Profit before taxation | 95,939 | 184,532 |
| Depreciation charges | 647,067 | 579,822 |
| Profit on disposal of fixed assets | (208 | ) | (1,250 | ) |
| Amounts written off investments | - | 114,054 |
| Finance costs | 18,877 | 13,986 |
| Finance income | (6,076 | ) | (6,159 | ) |
| 755,599 | 884,985 |
| (Increase)/decrease in stocks | (683,476 | ) | 714,249 |
| (Increase)/decrease in trade and other debtors | (158,620 | ) | 641,737 |
| Increase/(decrease) in trade and other creditors | 494,239 | (932,233 | ) |
| Cash generated from operations | 407,742 | 1,308,738 |
| 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 March 2022 |
| 31.3.22 | 1.4.21 |
| £ | £ |
| Cash and cash equivalents | 1,114,898 | 1,510,757 |
| Year ended 31 March 2021 |
| 31.3.21 | 1.4.20 |
| £ | £ |
| Cash and cash equivalents | 1,510,757 | 801,245 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.4.21 | Cash flow | At 31.3.22 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 1,510,757 | (395,859 | ) | 1,114,898 |
| 1,510,757 | (395,859 | ) | 1,114,898 |
| Debt |
| Finance leases | (232,846 | ) | 95,553 | (137,293 | ) |
| (232,846 | ) | 95,553 | (137,293 | ) |
| Total | 1,277,911 | (300,306 | ) | 977,605 |
| Brightwake Limited (Registered number: 01356034) |
| Notes to the Consolidated Financial Statements |
| for the Year Ended 31 March 2022 |
| 1. | STATUTORY INFORMATION |
| Brightwake Limited is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The financial statements are presented in Sterling (£). |
| The Company is incorporated in England & Wales and its registered office is at Sidings Road, Lowmoor Business Park, Kirkby in Ashfield, Nottinghamshire. |
| Basis of consolidation |
| The group financial statements consolidate the financial statements of the company and its subsidiary operations. All subsidiary operations have the same financial year. Subsidiary's are entities over which the group can exercise control. Control is the power to govern the financial and operating policies of |
| an entity so as to obtain benefits from its activities. |
| On consolidation, all group period end balances are excluded from the financial statements unless otherwise stated. The value of investments in the parent company are excluded together with the share capital of each subsidiary. Transactions between group members are excluded including income, expense, dividends |
| and profits and losses on assets where appropriate. |
| Related party exemption |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
| Significant judgements and estimates |
| In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
| The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are accounted for in the period in which the estimate is revised if the revision only affects that period, or in the period of revision and future periods if the revision affects both current and future periods. |
| The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below. |
| a) Depreciation. The Company's policy is to write off the value of an asset (less any residual value) over its estimated useful life. The company estimates the life of an asset based upon previous experience. Such estimates are judgemental in nature. |
| b) Patent cost and amortisation. Once a patent is granted it will have a useful life and as such it is straightforward to compare revenues to asset values and to estimate any write down in value. Before any patent is granted, any costs incurred are carried forward in the expectation of an asset arising. The carry forward of such costs is a key estimate as there is no certainty that an asset will arise. |
| c) Stock. The company estimates the value of the write down of its stock based upon a formula related to the length of time the stock has been held and not used. Such a formula is an estimate and may both overstate and understate the provision. |
| Brightwake Limited (Registered number: 01356034) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Revenue recognition |
| Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied, net of returns, discounts and rebates, excluding VAT. |
| Where payments are made on account of material sales, those payments are treated as sundry creditors and costs incurred against that sale (including the profit element) offset against the creditor. The cost and associated profit are accounted for as turnover. |
| Sale of goods. Sales are made to customers with no right to return unless certain conditions regarding usage have been met. Sales are usually by credit. |
| Goodwill |
| Tangible fixed assets |
| Short leasehold | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Tangible assets are carried at cost less accumulated depreciation and accumulated impairment losses. |
| Assets held under finance leases are recognised and depreciated in the same way as owned assets. |
| At each balance sheet date, the company reviews the carrying value of its fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
| Stocks |
| Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. The cost formula for valuing stock is on a first-in-first-out (FIFO) basis. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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. |
| Research and development |
| Expenditure on research and development is written off in the year in which it is incurred unless it is of a capital nature when it is treated as a fixed asset. Expenditure is deemed to be of a capital nature when a direct future economic benefit can be ascertained. |
| Brightwake Limited (Registered number: 01356034) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Foreign currencies |
| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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 |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
| The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
| 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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
| Government grants |
| Grants received are accounted for using the accruals model and are initially credited to deferred income. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the asset. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred. |
| Patents and intellectual property |
| Where costs are incurred in preparing a patent (or trademark) for registration those costs are treated as patent costs and carried forward until the patent is obtained - this can be a period of some years.. No provision is made against these costs until either a) they are written off as a patent will not be obtained or b) a patent is obtained and costs are then written off over the patents useful life. A patent normally has a useful life of 10 years. |
| Financial instruments |
| (i) Financial assets |
| Basic financial assets, including trade and other receivables are initially recognised at the transaction price and therefore stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the debtors are stated at cost less impairment losses for bad and doubtful debts. |
| Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
| (ii) Financial liabilities |
| Basic financial liabilities, including trade and other payables, bank loans and other loans are initially recognised at transaction price, unless the arrangement constitutes a financing transaction. |
| Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
| Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
| Brightwake Limited (Registered number: 01356034) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2022 |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the group. |
| An analysis of turnover by class of business is given below: |
| 31.3.22 | 31.3.21 |
| £ | £ |
| Goods and transport costs | 16,913,883 | 18,528,801 |
| Royalties | 238,635 | 173,889 |
| 17,152,518 | 18,702,690 |
| An analysis of turnover by geographical market is given below: |
| 31.3.22 | 31.3.21 |
| £ | £ |
| United Kingdom | 8,665,235 | 10,642,494 |
| Europe | 6,746,573 | 6,089,596 |
| United States of America | 1,063,833 | 1,171,491 |
| South America | 25,782 | 19,988 |
| Asia | 476,941 | 599,042 |
| Africa and Australasia | 174,154 | 180,079 |
| 17,152,518 | 18,702,690 |
| 4. | OTHER OPERATING INCOME |
| Grants received for the year total £141,004 (2021 - £142,788). |
| 5. | EMPLOYEES AND DIRECTORS |
| 31.3.22 | 31.3.21 |
| £ | £ |
| Wages and salaries | 5,421,595 | 5,893,962 |
| Social security costs | 502,343 | 558,513 |
| Other pension costs | 153,484 | 165,791 |
| 6,077,422 | 6,618,266 |
| The average number of employees during the year was as follows: |
| 31.3.22 | 31.3.21 |
| Productive | 165 | 186 |
| Sales and administration | 56 | 56 |
| Directors and management | 8 | 8 |
| The average number of employees by undertakings that were proportionately consolidated during the year was 6 (2021 - NIL ) . |
| The employment costs for key management personnel were £726,735 (2021 - £769,344). |
| 31.3.22 | 31.3.21 |
| £ | £ |
| Directors' remuneration | 146,689 | 150,197 |
| Directors' pension contributions to money purchase schemes | 12,000 | 12,000 |
| Brightwake Limited (Registered number: 01356034) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2022 |
| 5. | EMPLOYEES AND DIRECTORS - continued |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes | 1 | 1 |
| 6. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 31.3.22 | 31.3.21 |
| £ | £ |
| Hire of plant and machinery | 27,770 | 21,588 |
| Other operating leases | 288,808 | 261,482 |
| Depreciation - owned assets | 305,904 | 287,594 |
| Depreciation - assets on hire purchase contracts | 68,799 | 75,172 |
| Profit on disposal of fixed assets | (208 | ) | (1,250 | ) |
| Goodwill amortisation | 24,441 | - |
| Patents and licences amortisation | 247,921 | 217,055 |
| Auditors' remuneration | 29,175 | 14,500 |
| Audit-related assurance services | 1,100 | - |
| Taxation compliance services | 3,580 | - |
| Other non- audit services | 2,025 | 2,000 |
| Foreign exchange differences | (50,359 | ) | 26,506 |
| 7. | AMOUNTS WRITTEN OFF INVESTMENTS |
| 31.3.22 | 31.3.21 |
| £ | £ |
| Amount written off investments | - | 144,054 |
| 8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 31.3.22 | 31.3.21 |
| £ | £ |
| Bank interest | - | 287 |
| Other loan interest | - | 2,769 |
| Interest payable | (17 | ) | - |
| Hire purchase | 18,894 | 10,930 |
| 18,877 | 13,986 |
| 9. | TAXATION |
| Analysis of the tax credit |
| The tax credit on the profit for the year was as follows: |
| 31.3.22 | 31.3.21 |
| £ | £ |
| Current tax: |
| UK corporation tax | (102,500 | ) | (78,360 | ) |
| Previous year tax adjustment | 80,081 | (31,547 | ) |
| Total current tax | (22,419 | ) | (109,907 | ) |
| Deferred tax | (85,755 | ) | 96,725 |
| Tax on profit | (108,174 | ) | (13,182 | ) |
| Brightwake Limited (Registered number: 01356034) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2022 |
| 9. | TAXATION - continued |
| Reconciliation of total tax 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: |
| 31.3.22 | 31.3.21 |
| £ | £ |
| Profit before tax | 95,939 | 184,532 |
| Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
18,228 |
35,061 |
| Effects of: |
| Expenses not deductible for tax purposes | 1,084 | 28,056 |
| Income not taxable for tax purposes | (1,158 | ) | (1,140 | ) |
| Depreciation in excess of capital allowances | 28,563 | 3,083 |
| Utilisation of tax losses | - | (7,171 | ) |
| Adjustments to tax charge in respect of previous periods | (21,280 | ) | 34,716 |
| Research and development enhancement | (153,199 | ) | (161,235 | ) |
| Difference in tax charge due to foreign subsidiary tax rates being different | 5,090 | 19,323 |
| Loss of tax due to reclaim at R & D rate of 14.5% | 46,607 | 36,125 |
| EU royalty income taxed at lower rates | (32,109 | ) | - |
| Total tax credit | (108,174 | ) | (13,182 | ) |
| 10. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| 11. | DIVIDENDS |
| 31.3.22 | 31.3.21 |
| £ | £ |
| Ordinary shares of £1 each |
| Interim | 120,053 | 120,000 |
| Brightwake Limited (Registered number: 01356034) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2022 |
| 12. | INTANGIBLE FIXED ASSETS |
| Group |
| Patents |
| and |
| Goodwill | licences | Totals |
| £ | £ | £ |
| COST |
| At 1 April 2021 | - | 2,145,917 | 2,145,917 |
| Additions | 24,441 | 291,309 | 315,750 |
| Disposals | - | (106,262 | ) | (106,262 | ) |
| At 31 March 2022 | 24,441 | 2,330,964 | 2,355,405 |
| AMORTISATION |
| At 1 April 2021 | - | 972,311 | 972,311 |
| Amortisation for year | 24,441 | 247,921 | 272,362 |
| Eliminated on disposal | - | (96,736 | ) | (96,736 | ) |
| At 31 March 2022 | 24,441 | 1,123,496 | 1,147,937 |
| NET BOOK VALUE |
| At 31 March 2022 | - | 1,207,468 | 1,207,468 |
| At 31 March 2021 | - | 1,173,606 | 1,173,606 |
| Company |
| Patents |
| and |
| Goodwill | licences | Totals |
| £ | £ | £ |
| COST |
| At 1 April 2021 |
| Additions |
| Disposals | ( |
) | ( |
) |
| At 31 March 2022 |
| AMORTISATION |
| At 1 April 2021 |
| Amortisation for year |
| Eliminated on disposal | ( |
) | ( |
) |
| At 31 March 2022 |
| NET BOOK VALUE |
| At 31 March 2022 |
| At 31 March 2021 |
| Brightwake Limited (Registered number: 01356034) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2022 |
| 13. | TANGIBLE FIXED ASSETS |
| Group |
| Fixtures |
| Short | Plant and | and | Motor |
| leasehold | machinery | fittings | vehicles | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1 April 2021 | 113,291 | 4,641,094 | 227,396 | 186,561 | 5,168,342 |
| Additions | - | 222,616 | 18,328 | 15,000 | 255,944 |
| Disposals | - | (123,735 | ) | - | (1,800 | ) | (125,535 | ) |
| Impairments | - | (17,441 | ) | - | - | (17,441 | ) |
| At 31 March 2022 | 113,291 | 4,722,534 | 245,724 | 199,761 | 5,281,310 |
| DEPRECIATION |
| At 1 April 2021 | 113,291 | 3,722,384 | 222,293 | 88,607 | 4,146,575 |
| Charge for year | - | 329,566 | 4,327 | 40,810 | 374,703 |
| Eliminated on disposal | - | (123,735 | ) | - | (1,800 | ) | (125,535 | ) |
| At 31 March 2022 | 113,291 | 3,928,215 | 226,620 | 127,617 | 4,395,743 |
| NET BOOK VALUE |
| At 31 March 2022 | - | 794,319 | 19,104 | 72,144 | 885,567 |
| At 31 March 2021 | - | 918,710 | 5,103 | 97,954 | 1,021,767 |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Plant and | Motor |
| machinery | vehicles | Totals |
| £ | £ | £ |
| COST |
| At 1 April 2021 | 250,484 | 157,193 | 407,677 |
| Additions | 28,360 | - | 28,360 |
| Transfer to ownership | - | (97,590 | ) | (97,590 | ) |
| At 31 March 2022 | 278,844 | 59,603 | 338,447 |
| DEPRECIATION |
| At 1 April 2021 | 44,168 | 61,876 | 106,044 |
| Charge for year | 53,898 | 14,901 | 68,799 |
| Transfer to ownership | - | (44,734 | ) | (44,734 | ) |
| At 31 March 2022 | 98,066 | 32,043 | 130,109 |
| NET BOOK VALUE |
| At 31 March 2022 | 180,778 | 27,560 | 208,338 |
| At 31 March 2021 | 206,316 | 95,317 | 301,633 |
| Brightwake Limited (Registered number: 01356034) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2022 |
| 13. | TANGIBLE FIXED ASSETS - continued |
| Company |
| Fixtures |
| Short | Plant and | and | Motor |
| leasehold | machinery | fittings | vehicles | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1 April 2021 |
| Additions |
| Disposals | ( |
) | ( |
) | ( |
) |
| Impairments | - | (17,441 | ) | - | - | (17,441 | ) |
| At 31 March 2022 |
| DEPRECIATION |
| At 1 April 2021 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) | ( |
) |
| At 31 March 2022 |
| NET BOOK VALUE |
| At 31 March 2022 |
| At 31 March 2021 |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Plant and | Motor |
| machinery | vehicles | Totals |
| £ | £ | £ |
| COST |
| At 1 April 2021 |
| Additions |
| Transfer to ownership | - | (97,590 | ) | (97,590 | ) |
| At 31 March 2022 |
| DEPRECIATION |
| At 1 April 2021 |
| Charge for year |
| Transfer to ownership | - | (44,734 | ) | (44,734 | ) |
| At 31 March 2022 |
| NET BOOK VALUE |
| At 31 March 2022 |
| At 31 March 2021 |
| Brightwake Limited (Registered number: 01356034) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2022 |
| 14. | FIXED ASSET INVESTMENTS |
| Group |
| Unlisted |
| investments |
| £ |
| COST OR VALUATION |
| At 1 April 2021 |
| and 31 March 2022 | 285,135 |
| PROVISIONS |
| At 1 April 2021 |
| and 31 March 2022 | 285,135 |
| NET BOOK VALUE |
| At 31 March 2022 | - |
| At 31 March 2021 | - |
| Cost or valuation at 31 March 2022 is represented by: |
| Unlisted |
| investments |
| £ |
| Cost | 285,135 |
| Company |
| Shares in |
| group | Unlisted |
| undertakings | investments | Totals |
| £ | £ | £ |
| COST OR VALUATION |
| At 1 April 2021 | 295,931 |
| Additions | 100 |
| At 31 March 2022 | 296,031 |
| PROVISIONS |
| At 1 April 2021 |
| and 31 March 2022 | - | 285,135 | 285,135 |
| NET BOOK VALUE |
| At 31 March 2022 | 10,896 |
| At 31 March 2021 | 10,796 |
| Cost or valuation at 31 March 2022 is represented by: |
| Shares in |
| group | Unlisted |
| undertakings | investments | Totals |
| £ | £ | £ |
| Cost | 10,896 | 285,135 | 296,031 |
| Brightwake Limited (Registered number: 01356034) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2022 |
| 14. | FIXED ASSET INVESTMENTS - continued |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiaries |
| Registered office: Germany |
| Nature of business: |
| % |
| Class of shares: | holding |
| 31.3.22 | 31.3.21 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| Registered office: Holland |
| Nature of business: |
| % |
| Class of shares: | holding |
| 31.3.22 | 31.3.21 |
| £ | £ |
| Aggregate capital and reserves | ( |
) | ( |
) |
| Profit for the year |
| Registered office: As parent |
| Nature of business: |
| % |
| Class of shares: | holding |
| 31.3.22 |
| £ |
| Aggregate capital and reserves | ( |
) |
| Loss for the year | ( |
) |
| The Company holds a 14% stake in a UK Company (cost £285,135). Because of the uncertainty over that Company's future, the Investment has been written down to nil in previous years. |
| 15. | STOCKS |
| Group | Company |
| 31.3.22 | 31.3.21 | 31.3.22 | 31.3.21 |
| £ | £ | £ | £ |
| Raw materials and packaging | 1,817,268 | 1,302,271 | 1,817,268 | 1,302,271 |
| Work in progress | 196,232 | 636,012 | 164,299 | 636,012 |
| Finished goods | 1,999,328 | 1,391,069 | 1,694,144 | 1,078,757 |
| 4,012,828 | 3,329,352 | 3,675,711 | 3,017,040 |
| Brightwake Limited (Registered number: 01356034) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2022 |
| 16. | DEBTORS |
| Group | Company |
| 31.3.22 | 31.3.21 | 31.3.22 | 31.3.21 |
| £ | £ | £ | £ |
| Amounts falling due within one year: |
| Trade debtors | 2,641,334 | 2,380,393 |
| Amounts owed by group undertakings | - | - |
| Other debtors | 186,568 | 443,529 |
| Directors' loan accounts | 226,293 | 190,853 | 226,293 | 190,853 |
| Tax | 327,824 | 308,315 |
| VAT | 22,832 | - |
| Prepayments and accrued income | 198,758 | 83,725 |
| 3,603,609 | 3,406,815 |
| Amounts falling due after more than one | year: |
| Tax | 119,027 | 113,606 |
| Aggregate amounts | 3,722,636 | 3,520,421 |
| Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. |
| 17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.3.22 | 31.3.21 | 31.3.22 | 31.3.21 |
| £ | £ | £ | £ |
| Hire purchase contracts (see note 19) | 98,711 | 115,405 |
| Trade creditors | 2,166,855 | 1,517,738 |
| Amounts owed to group undertakings | - | - |
| Tax | 26,871 | 161,966 |
| Social security and other taxes | 130,909 | 79,804 |
| VAT | - | 91,274 | 7,551 | 52,576 |
| Other creditors | 395,717 | 207,361 |
| Directors' loan accounts | 2,584 | 11,636 | 2,584 | 11,636 |
| Accrued expenses | 91,932 | 254,710 |
| 2,913,579 | 2,439,894 |
| Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. |
| 18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 31.3.22 | 31.3.21 | 31.3.22 | 31.3.21 |
| £ | £ | £ | £ |
| Hire purchase contracts (see note 19) | 38,582 | 117,441 |
| Brightwake Limited (Registered number: 01356034) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2022 |
| 19. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 31.3.22 | 31.3.21 |
| £ | £ |
| Net obligations repayable: |
| Within one year | 98,711 | 115,405 |
| Between one and five years | 38,582 | 117,441 |
| 137,293 | 232,846 |
| Company |
| Hire purchase contracts |
| 31.3.22 | 31.3.21 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| Group |
| Non-cancellable operating | leases |
| 31.3.22 | 31.3.21 |
| £ | £ |
| Within one year | 499 | 22,119 |
| Between one and five years | 57,384 | 66,587 |
| 57,883 | 88,706 |
| Company |
| Non-cancellable operating | leases |
| 31.3.22 | 31.3.21 |
| £ | £ |
| Within one year |
| Between one and five years |
| 20. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group | Company |
| 31.3.22 | 31.3.21 | 31.3.22 | 31.3.21 |
| £ | £ | £ | £ |
| Hire purchase contracts | 137,293 | 232,846 | 137,293 | 232,846 |
| Hire purchase and other asset loans are secured against the assets which the loans were used to purchase. |
| Brightwake Limited (Registered number: 01356034) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2022 |
| 21. | FINANCIAL INSTRUMENTS |
| Financial Assets |
| Debt instruments measured at amortised cost of £3,265,051 (2021 - £3,097,500) for the group. |
| Debt instruments measured at amortised cost of £4,050,350 (2021 - £3,797,064) for the company. |
| Financial Liabilities |
| Measured at amortised cost of £2,684,001 (2021 - £2,108,648) for the group. |
| Measured at amortised cost of £2,711,575 (2021 - £2,060,720) for the company. |
| 22. | PROVISIONS FOR LIABILITIES |
| Group | Company |
| 31.3.22 | 31.3.21 | 31.3.22 | 31.3.21 |
| £ | £ | £ | £ |
| Deferred tax |
| Accelerated capital allowances | 136,830 | 116,029 |
| Tax losses carried forward | (112,193 | ) | - | ( |
) |
| 24,637 | 116,029 | 24,637 | 116,029 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 April 2021 | 116,029 |
| Recognition of trading losses | (112,193 | ) |
| Advance capital allowances | 20,801 |
| Balance at 31 March 2022 | 24,637 |
| Company |
| Deferred |
| tax |
| £ |
| Balance at 1 April 2021 |
| Recognition of trading losses | (112,193 | ) |
| Advance capital allowances | 20,801 |
| Balance at 31 March 2022 |
| 23. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.3.22 | 31.3.21 |
| value: | £ | £ |
| Ordinary | £1 | 15,000 | 15,000 |
| Ordinary shares rank equally in respect of all rights and rewards. |
| Brightwake Limited (Registered number: 01356034) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2022 |
| 24. | RESERVES |
| Group |
| Retained |
| earnings |
| £ |
| At 1 April 2021 | 7,867,539 |
| Profit for the year | 204,113 |
| Dividends | (120,053 | ) |
| At 31 March 2022 | 7,951,599 |
| Company |
| Retained |
| earnings |
| £ |
| At 1 April 2021 |
| Profit for the year |
| Dividends | ( |
) |
| At 31 March 2022 |
| 25. | CONTINGENT LIABILITIES |
| The Company has offered extended credit terms to its Dutch subsidiary. The Balance sheet of that Company shows net liabilities of approximately £300,000 at the year end. The Company has made small profits in each of the last two years and the Group will continue to support its subsidiary as it is seen to be essential to the Group's future development. |
| 26. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to a director subsisted during the years ended 31 March 2022 and 31 March 2021: |
| 31.3.22 | 31.3.21 |
| £ | £ |
| K A Allen |
| Balance outstanding at start of year | 190,853 | 173,600 |
| Amounts advanced | 35,440 | 17,253 |
| Amounts repaid | - | - |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | 226,293 | 190,853 |
| The director withdrew monies in the year mainly in respect of his personal expenses. |
| Directors loans are interest free and repayable on demand. |
| 27. | RELATED PARTY DISCLOSURES |
| The holding company rents its premises from a pension fund set up for the benefit of the directors. The annual rental is £222,000 (£2021 -£222,000). There was no rent outstanding at the year end. |
| The Company has a small amount due to it of £15,996 (2021 - £26,752) in respect of monies paid out on behalf of the Directors Pension Scheme which were outstanding at the year end. |