G.D. Woodworking Limited - Limited company accounts 23.1

REGISTERED NUMBER: 02168053 (England and Wales)

G.D. WOODWORKING LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2022

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

G M Ducker

A N Ducker

M C Ducker

N L Hyde

S R Louw

SECRETARY:

L Ducker

REGISTERED OFFICE:

Canklow Meadows Industrial Estate

West Bawtry Road

Rotherham

South Yorkshire

S60 2XL

REGISTERED NUMBER:

02168053 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

Sidings House

Sidings Court

Lakeside

Doncaster

South Yorkshire

DN4 5NU

BANKERS:

Yorkshire Bank

1 Frederick Street

Rotherham

South Yorkshire

S60 1QP

The directors present their strategic report for the year ended 31 December 2022.

REVIEW OF BUSINESS

The results for the year and financial position of G.D.Woodworking Limited ("the Company") are shown in the annexed financial statements.

The Company is a privately owned staircase manufacturer. The strategy of the Company is to produce high quality products whilst maintaining strong customer relationships with effectively managed employees.

The directors continue to be pleased with the financial performance of the Company in the light of the effects of the coronavirus pandemic.

The Company has invested in capital equipment in recent years and during the the year which has enable the Company to increase production and therefore deliver growth. The directors believe that the investment will continue to deliver growth in future years to which the benefits will be delivered in terms of efficiency, turnover and profitability.

FINANCIAL KEY PERFORMANCE INDICATORS

2022

2021

Turnover

£15,424,835

£11,001,335

Gross Profit

£5,648,796

£3,964,700

Gross Profit Margin

36.62%

36.04%

Net Profit Before Tax

£2,739,231

£1,453,837

Net Current Assets

£3,835,252

£2,625,705

Net Assets

£8,297,094

£6,910,612

PRINCIPAL RISKS AND UNCERTAINTIES

The Board regularly considers the main risks that the Company faces and how to mitigate them. The most significant risks are as follows:

Business Risk

- that the Company strategy and business model does not deliver positive results;

- that unforeseen or unexpected events beyond the control of the Company result in a significant worsening of market conditions;

- that rationalisation in the Company's traditional business sectors occurs at a rate where the Company cannot react to the changing environment quickly enough.

Credit Risk

The Company monitors outstanding balances on a monthly basis to identify potential problems and liaises with its customers. If this does not resolve the problem debt collection proceedings are initiation in order to minimise risk.

EMPLOYEE MATTERS

The Company continues to supplement staff competencies in key technical areas through internal skills development and training. The Company remains an equal opportunities employer and implements rigorous health and safety management processes.

ENVIRONMENTAL MATTERS

The Company is committed to minimising the impact of its activities on the environment and to continually improve its environmental performance.

ON BEHALF OF THE BOARD:

G M Ducker - Director

27 April 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2022.

DIVIDENDS

An interim dividend of £20.00 was paid on the Ordinary A shares. The directors recommend that no final dividend be paid on these shares.

An interim dividend of £198,000 per share was paid on the Ordinary B shares. The directors recommend that no final dividend be paid on these shares.

An interim dividend of £250,000 per share was paid on the Ordinary C shares. The directors recommend that no final dividend be paid on these shares.

An interim dividend of £210,000 per share was paid on the Ordinary D shares. The directors recommend that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 31 December 2021 will be £758,000.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

G M Ducker

A N Ducker

M C Ducker

N L Hyde

S R Louw

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

G M Ducker - Director

27 April 2023

Opinion

We have audited the financial statements of G.D. Woodworking Limited (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 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:

Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and

regulations related to construction, building and corporation tax legislation and we considered the extent to which

non-compliance might have a material effect on the financial statements. As part of this assessment we considered both quantitative and qualitative factors. We also considered those laws and regulations that have a direct impact on the preparation on the financial statements, such as the Companies Act 2006 and FRS 102.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements which included the risk of management override of controls. We determined that the principal risks were related to posting inappropriate journal entries, omitting, advancing or delaying recognition of events and transactions that have occurred during or after the reporting period, and potential management bias in the determination of accounting estimates or judgements to manipulate results.

Audit procures performed by the engagement team include:

- Enquiring of and obtaining written representation from management in relation to known or suspected instances of

non-compliance with laws and regulations and fraud;

- Enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and

regulations;

- Evaluation of management's controls designed to prevent and detect irregularities;

- Identifying and, where relevant, testing journal entries posted by senior management or with unusual combinations;

- Assessing and evaluating the business rationale of significant transactions outside the normal course of business;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with

applicable laws and regulations;

- Review of correspondence with regulators in so far as they are related to the financial statements;

- Incorporating elements of unpredictability into the nature, timing and/or extent of audit procedures performed.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with

laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditors responsibilities. This description forms part of our Report of the Auditors

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.

Andrew Cribb FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Sidings House

Sidings Court

Lakeside

Doncaster

South Yorkshire

DN4 5NU

2 May 2023

TURNOVER

3

15,424,835

11,001,335

Cost of sales

9,776,039

7,036,635

GROSS PROFIT

5,648,796

3,964,700

Administrative expenses

2,965,437

2,600,746

2,683,359

1,363,954

Other operating income

52,463

85,182

OPERATING PROFIT

5

2,735,822

1,449,136

Interest receivable and similar income

4,052

4,701

2,739,874

1,453,837

Interest payable and similar expenses

6

643

-

PROFIT BEFORE TAXATION

2,739,231

1,453,837

Tax on profit

7

594,819

279,713

PROFIT FOR THE FINANCIAL YEAR

2,144,412

1,174,124

PROFIT FOR THE YEAR

2,144,412

1,174,124

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,144,412

1,174,124

FIXED ASSETS

Tangible assets

9

4,878,542

4,540,419

CURRENT ASSETS

Stocks

10

856,807

749,414

Debtors

11

2,276,411

1,885,435

Cash at bank and in hand

2,845,938

1,565,571

5,979,156

4,200,420

CREDITORS

Amounts falling due within one year

12

2,143,904

1,574,715

NET CURRENT ASSETS

3,835,252

2,625,705

TOTAL ASSETS LESS CURRENT LIABILITIES

8,713,794

7,166,124

PROVISIONS FOR LIABILITIES

13

416,770

255,512

NET ASSETS

8,297,024

6,910,612

CAPITAL AND RESERVES

Called up share capital

14

5,003

5,003

Retained earnings

15

8,292,021

6,905,609

SHAREHOLDERS' FUNDS

8,297,024

6,910,612

The financial statements were approved by the Board of Directors and authorised for issue on 27 April 2023 and were signed on its behalf by:

G M Ducker - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2021

5,003

6,523,485

6,528,488

Changes in equity

Dividends

-

(792,000

)

(792,000

)

Total comprehensive income

-

1,174,124

1,174,124

Balance at 31 December 2021

5,003

6,905,609

6,910,612

Changes in equity

Dividends

-

(758,000

)

(758,000

)

Total comprehensive income

-

2,144,412

2,144,412

Balance at 31 December 2022

5,003

8,292,021

8,297,024

Cash flows from operating activities

Cash generated from operations

1

3,111,407

1,514,143

Interest paid

(643

)

-

Tax paid

(275,717

)

(280,896

)

Net cash from operating activities

2,835,047

1,233,247

Cash flows from investing activities

Purchase of tangible fixed assets

(872,472

)

(295,655

)

Sale of tangible fixed assets

71,740

43,450

Interest received

4,052

4,701

Net cash from investing activities

(796,680

)

(247,504

)

Cash flows from financing activities

Equity dividends paid

(758,000

)

(792,000

)

Net cash from financing activities

(758,000

)

(792,000

)

Increase in cash and cash equivalents

1,280,367

193,743

Cash and cash equivalents at beginning of year

2

1,565,571

1,371,828

Cash and cash equivalents at end of year

2

2,845,938

1,565,571

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

2022

2021

£

£

Profit before taxation

2,739,231

1,453,837

Depreciation charges

451,664

479,317

Loss on disposal of fixed assets

10,945

1,868

Finance costs

643

-

Finance income

(4,052

)

(4,701

)

3,198,431

1,930,321

Increase in stocks

(107,393

)

(151,353

)

Increase in trade and other debtors

(390,976

)

(483,306

)

Increase in trade and other creditors

411,345

218,481

Cash generated from operations

3,111,407

1,514,143

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2022

31.12.22

1.1.22

£

£

Cash and cash equivalents

2,845,938

1,565,571

Year ended 31 December 2021

31.12.21

1.1.21

£

£

Cash and cash equivalents

1,565,571

1,371,828

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.22

Cash flow

At 31.12.22

£

£

£

Net cash

Cash at bank and in hand

1,565,571

1,280,367

2,845,938

1,565,571

1,280,367

2,845,938

Total

1,565,571

1,280,367

2,845,938

1.	STATUTORY INFORMATION

G.D. Woodworking 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.

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.

At the balance sheet date of 31 December 2022, the Company made a profit for the year after tax of £2,144,412 (2021: £1,174,124) and had net assets at that date of £8,297,024 (2021: £6,910,612) and the directors are expecting further growth to be achieved over the next 12 months.

The directors believe that the Company is well placed to manage its business risks successfully. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Government grants

Grant income relating to revenue is recognised on an accruals basis. Income is recognised on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. A grant becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support with no future related costs is recognised in income in the period in which it becomes receivable.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2022

2021

£

£

United Kingdom

15,424,835

11,001,335

15,424,835

11,001,335

4.	EMPLOYEES AND DIRECTORS

2022

2021

£

£

Wages and salaries

3,329,526

2,878,169

Social security costs

350,431

294,548

Other pension costs

248,964

223,541

3,928,921

3,396,258

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

2022

2021

Directors

5

5

Production & Admin

84

81

89

86

2022

2021

£

£

Directors' remuneration

228,333

251,900

Directors' pension contributions to money purchase schemes

143,595

123,724

Information regarding the highest paid director is as follows:

2022

2021

£

£

Emoluments etc

73,333

95,317

Pension contributions to money purchase schemes

855

944

5.	OPERATING PROFIT

The operating profit is stated after charging:

2022

2021

£

£

Depreciation - owned assets

451,664

479,317

Loss on disposal of fixed assets

10,945

1,868

Auditors' remuneration

7,750

6,750

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2022

2021

£

£

Corporation tax interest

643

-

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2022

2021

£

£

Current tax:

UK corporation tax

433,561

275,717

Deferred tax

161,258

3,996

Tax on profit

594,819

279,713

Reconciliation of total tax charge included in profit and loss

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

2022

2021

£

£

Profit before tax

2,739,231

1,453,837

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

520,454

276,229

Effects of:

Expenses not deductible for tax purposes

1,340

502

Income not taxable for tax purposes

(8,876

)

-

Adjustments to tax charge in respect of previous periods

81,835

-

Depreciation of freehold

10,425

9,278

Super allowances

(29,131

)

(8,354

)

Fixed asset deposit

18,772

2,058

Total tax charge

594,819

279,713

8.

DIVIDENDS

2022

2021

£

£

Ordinary shares of £1 each - Interim

758,000

792,000

9.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 January 2022

2,456,774

4,067,115

88,693

564,784

7,177,366

Additions

298,131

385,566

22,096

166,679

872,472

Disposals

-

(101,740

)

-

(101,445

)

(203,185

)

At 31 December 2022

2,754,905

4,350,941

110,789

630,018

7,846,653

DEPRECIATION

At 1 January 2022

228,338

2,113,833

32,440

262,336

2,636,947

Charge for year

54,871

305,202

10,682

80,909

451,664

Eliminated on disposal

-

(47,587

)

-

(72,913

)

(120,500

)

At 31 December 2022

283,209

2,371,448

43,122

270,332

2,968,111

NET BOOK VALUE

At 31 December 2022

2,471,696

1,979,493

67,667

359,686

4,878,542

At 31 December 2021

2,228,436

1,953,282

56,253

302,448

4,540,419