W & G Baird Limited 31/12/2022 iXBRL

W. & G. BAIRD LIMITED - Company Information

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Company registration number: NI016666

W & G Baird Limited

Financial statements

31 December 2022

W & G Baird Limited

Contents

Directors and other information

Strategic report

Directors report

Independent auditor's report to the members

Statement of income and retained earnings

Statement of financial position

Statement of cash flows

Notes to the financial statements

W & G Baird Limited

Directors and other information


Directors	Mr P Moffett
	Mr T Brennan
	Mr N Halligan
	Mr D Hinds
	Mr M Ennis
	Mr I McCurry
	Mr P A Rothwell	(Resigned 16 May 2022)
	Mr A Watson	(Resigned 16 December 2022)


Secretary	T Brennan


Company number	NI016666


Registered office	Newpark Industrial Estate
	Greystone Press
	Caulside Drive
	Antrim
	BT41 2RS


Auditor	Hill Vellacott
	22 Great Victoria Street
	Belfast
	BT2 7BA




	Bankers	Bank of Ireland
		5th Floor
		1 Donegall Square South
		Belfast
		BT1 5LR

W & G Baird Limited

Strategic report

Year ended 31 December 2022

Review of the business

The directors of W & G Baird Limited offer the following general assessment of the business and its key factors during the financial year to 31st December 2022.

The print industry remained challenging throughout 2022 but the Strategy was to grow the business and support customers by keeping prices as competitive as possible in the face of significant supplier cost increases.

The sales strategy was successful with turnover increasing from £11.44 million in 2021 to £13.8 million.

The business has worked tirelessly on a strategy of organisational change and believe strongly, that this will, with continued investment in people and processes, facilitate efficiencies and productivity gains crucial to continued success.

The directors have carried out assessments of the principle risks facing it, specifically such areas as macro economic uncertainty, performance, liquidity and cash flows, supply chain and operational risk and believe that W & G Baird Limited will emerge from the pandemic as a stronger, more competitive and efficient company, better able to compete in the changing markets in which it operates.

Results and performance

Both the level of business and the year end position were considered satisfactory and the directors expect that the current level of activity will be further improved in the foreseeable future.

Risk and uncertainties

The company is exposed to a variety of risks including credit risk, currency risk, raw material price control risk and risk inherent in the general printing environment.

The company's management endeavour to mitigate these risks by implementing regular strategic and operational reviews.

Credit risk

The nature of the business necessitates the provision of customer credit facilities. The company has implemented policies through its credit control procedures to manage this risk and ensure appropriate credit checks are performed on customers when sales are made.

Currency risk

The company operates in several currency markets and uses both natural hedges and banking financial instruments as part of its overall currency risk strategy.

Market risk

The company continually monitors and reviews market penetration and customer profitability and works to generate new access to market opportunities wherever possible.

Key performance indicators

The company uses several key performance indicators to manage the day to day running of the business. The directors do not feel however that the use of KPI's in the statutory accounts are necessary currently.

Future development

The company recognises the need to constantly review its market offering and will continue to invest through the purchase and development of modern technology. The company also realises that alongside new equipment, there is a need to continually develop internal processes and intends to recruit and develop suitably qualified staff to this end.

Capital expenditure

The company constantly researches and invests in ways to improve the consistency and quality of its printed products. An agreement has been reached with Komori UK to further upgrade current press room capability in 2019 with the addition of a new Komori printing press to include camera control quality monitoring and improvement systems.

This report was approved by the board of directors on 30 August 2023 and signed on behalf of the board by:

Mr T Brennan

Director

W & G Baird Limited

Directors report

Year ended 31 December 2022

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

Directors

The directors who served the company during the year were as follows:


Mr P Moffett
Mr T Brennan
Mr N Halligan
Mr D Hinds
Mr M Ennis
Mr I McCurry
Mr P A Rothwell				(Resigned 16 May 2022)
Mr A Watson				(Resigned 16 December 2022)

Dividends

Particulars of recommended dividends are detailed in note 11 to the financial statements.

Future developments

The Company recognises the need to constantly review its market offering and will continue to invest and develop internal processes through the purchase of modern technology and equipment ensuring it maintains a competitive product offering to all customers.

Financial instruments

W & G Baird can be exposed to price risk because of changes in commodity prices.

Other matters

The directors ongoing commitment is to continue to pursue a strategy of continual capital investment.

Disclosure of information in the strategic report.

In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 the directors have set out the business review in the strategic report on pages 2 & 3.

Directors responsibilities statement

The directors are responsible for preparing the strategic report, directors report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 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 judgments and accounting estimates that are reasonable and prudent; and

- 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.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

This report was approved by the board of directors on 30 August 2023 and signed on behalf of the board by:

Mr T Brennan

Director

Independent auditor's report to the members of

W & G Baird Limited

Year ended 31 December 2022

Opinion

We have audited the financial statements of W & G Baird Limited (the 'company') for the year ended 31 December 2022 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 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 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and the 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 directors' responsibilities statement, 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 is 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.

Auditor's 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 an auditor’s report 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. 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: Our approach was as follows:We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that relate to the Companies Act 2006 and compliance with FRS102 and laws and regulations concerned with UK government COVID-19 support schemes; and we assessed the risks of material misstatement in respect of fraud with the consideration of the company's own assessment of the risks that irregularities may occur either because of fraud or error; the results of our enquiries of management about their own identification and assessment of the risks of irregularities; any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the areas in which management is required to exercise significant judgment, such as disclosure of adjusting items. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override; we also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act and tax legislation; and in addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These included data protection, employment and health and safety regulations.Audit procedures designed to respond to the risks of fraud:We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach. We considered the risk of fraud through transactions outside the normal course of transactions by noting anything that was unusual in nature or size and enquired about such transaction to gain an understanding of their nature; based on the results of our risk assessment we designed our audit procedures to identify and to address material misstatements in relation to fraud and other irregularities; extent of audit procedures; and we evaluated the selection and application of accounting policies by the company, particularly those related to subjective measurements and complex transactions, that may be indicative of fraudulent financial reporting. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 an auditors report 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.

Mr Conor McCaffrey, ACA (Senior Statutory Auditor)

For and on behalf of

Hill Vellacott

Chartered Accountants and Statutory Auditor

22 Great Victoria Street

Belfast

BT2 7BA

30 August 2023

W & G Baird Limited

Statement of income and retained earnings

Year ended 31 December 2022

				2022		2021
		Note		£		£


Turnover	4		13,810,421		11,449,002
Cost of sales			( 9,490,407)		( 8,299,134)
			_________		_________
Gross profit			4,320,014		3,149,868

Distribution costs			( 1,292,948)		( 1,226,604)
Administrative expenses			( 2,623,164)		( 1,916,344)
Other operating income	5		302,205		547,337
			_________		_________
Operating profit	6		706,107		554,257

Interest payable and similar expenses	8		( 96,517)		( 119,465)
Profit before taxation			609,590		434,792

Tax on profit	9		( 9,023)		82,126
			_________		_________
Profit for the financial year and total comprehensive income			600,567		516,918
			_________		_________

Dividends declared and paid or payable during the year	11		( 180,000)		( 180,000)

Retained earnings at the start of the year			5,956,545		5,619,627
			_________		_________
Retained earnings at the end of the year			6,377,112		5,956,545
			_________		_________

All the activities of the company are from continuing operations.

W & G Baird Limited

Statement of financial position

31 December 2022

		2022		2021
	Note	£	£	£	£

Fixed assets
Tangible assets	12	3,944,272		4,773,487
		_________		_________
			3,944,272		4,773,487

Current assets
Stocks	13	887,217		886,066
Debtors	14	6,548,461		6,626,845
Cash at bank and in hand		105,694		97,673
		_________		_________
		7,541,372		7,610,584
Creditors: amounts falling due
within one year	16	( 3,070,377)		( 3,796,906)
		_________		_________
Net current assets			4,470,995		3,813,678
			_________		_________
Total assets less current liabilities			8,415,267		8,587,165

Creditors: amounts falling due
after more than one year	17		( 1,431,173)		( 2,032,661)

Provisions for liabilities	19		( 566,626)		( 557,603)

			_________		_________
Net assets			6,417,468		5,996,901
			_________		_________

Capital and reserves
Called up share capital	23		2		2
Share premium account	24		40,354		40,354
Profit and loss account	24		6,377,112		5,956,545
			_________		_________
Shareholders funds			6,417,468		5,996,901
			_________		_________

These financial statements were approved by the board of directors and authorised for issue on 30 August 2023 , and are signed on behalf of the board by:

Mr T Brennan

Director

Company registration number: NI016666

W & G Baird Limited

Statement of cash flows

Year ended 31 December 2022

		2022	2021
	Note	£	£

Cash flows from operating activities
Profit for the financial year		600,567	516,918

Adjustments for:
Depreciation of tangible assets		890,165	873,167
Government grant income		( 25,806)	( 200,767)
Interest payable and similar expenses		96,517	119,465
Gain/(loss) on disposal of tangible assets		-	( 9,926)
Tax on profit		9,023	( 82,126)
Accrued expenses/(income)		( 44,518)	359,887

Changes in:
Stocks		( 1,151)	( 298,448)
Trade and other debtors		78,384	13,826
Trade and other creditors		( 387,229)	( 69,558)
		_________	_________
Cash generated from operations		1,215,952	1,222,438

Interest paid		( 96,517)	( 119,465)
		_________	_________
Net cash from operating activities		1,119,435	1,102,973
		_________	_________

Cash flows from investing activities
Purchase of tangible assets		( 60,950)	( 316,832)
Proceeds from sale of tangible assets		-	11,500
		_________	_________
Net cash used in investing activities		( 60,950)	( 305,332)
		_________	_________

Cash flows from financing activities
Repayments of borrowings		( 490,645)	( 160,756)
Repayments of loans from group undertakings		( 2,185)	( 33,417)
Government grant income		25,806	224,418
Payment of finance lease liabilities		( 18,734)	( 366,556)
Equity dividends paid		( 180,000)	( 180,000)
		_________	_________
Net cash used in financing activities		( 665,758)	( 516,311)
		_________	_________

Net increase/(decrease) in cash and cash equivalents		392,727	281,330
Cash and cash equivalents at beginning of year	15	(180,929)	(462,259)
		_________	_________
Cash and cash equivalents at end of year	15	211,798	( 180,929)
		_________	_________

W & G Baird Limited

Notes to the financial statements

Year ended 31 December 2022

1. General information

The company is a private company limited by shares, registered in Northern Ireland. The address of the registered office is W & G Baird Ltd, Newpark Industrial Estate, Greystone Press, Caulside Drive, Antrim, BT41 2RS.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Judgements and key sources of estimation uncertainty

Judgements and key sources of estimation uncertaintyThe preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgementsThere are no significant judgments (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies.Key sources of estimation uncertaintyAccounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:ProvisionsProvision is made for future obligations and contingencies. These provisions require management's best estimate of the costs that will be incurred based on legislative, contractual and other obligating events. StockStock is stated at the lower of cost and net realisable value and management have to estimate the net realisable value of the stock to recognise any impairment. Fixed assetsManagement have estimated the useful life of its main printing assets based on extensive experience in the printing industry.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to profit or loss.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:


Plant and machinery	-	8% to 33% straight line
Motor vehicles	-	17% to 33% straight line

If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.

Hire purchase and finance leases

Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2022	2021
	£	£
Sale of goods	13,810,421	11,449,002
	_________	_________

The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2022	2021
	£	£
UK	7,485,756	6,092,843
ROI	6,324,665	5,356,159
	_________	_________
	13,810,421	11,449,002
	_________	_________

5. Other operating income

	2022	2021
	£	£
Government grant income	25,806	200,767
Other operating income	276,399	346,570
	_________	_________
	302,205	547,337
	_________	_________

6. Operating profit

Operating profit is stated after charging/(crediting):

	2022	2021
	£	£
Depreciation of tangible assets	890,165	873,167
(Gain)/loss on disposal of tangible assets	-	( 9,926)
Impairment of trade debtors	(50,179)	(27,344)
Operating lease rentals	53,317	66,381
Foreign exchange differences	1,702	16,169
Fees payable for the audit of the financial statements	11,500	11,000
	_________	_________

7. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2022	2021
Production staff	66	51
Distribution staff	6	5
Administrative staff	18	31
	_________	_________
	90	87
	_________	_________

The aggregate payroll costs incurred during the year were:

	2022	2021
	£	£
Wages and salaries	2,704,788	2,348,422
Social security costs	289,733	268,845
Other pension costs	70,570	65,074
	_________	_________
	3,065,091	2,682,341
	_________	_________

8. Interest payable and similar expenses

		2022	2021
		£	£
Bank loans and overdrafts		55,945	53,260
Other loans made to the company:
	Finance leases and hire purchase contracts	40,559	64,843
Other interest payable and similar expenses		13	1,362
		_________	_________
		96,517	119,465
		_________	_________

9. Tax on profit

Major components of tax expense/income

	2022	2021
	£	£
Deferred tax:
Origination and reversal of timing differences	9,023	( 82,126)
	_________	_________
Tax on profit	9,023	( 82,126)
	_________	_________

Reconciliation of tax expense/income

The tax assessed on the profit for the year is lower than (2021: lower than) the standard rate of corporation tax in the UK of 19.00 % (2021: 19.00%).

	2022	2021
	£	£
Profit before taxation	609,590	434,792
	_________	_________

Profit multiplied by rate of tax	115,822	82,610
Effect of capital allowances and depreciation	111,355	( 61,431)
Utilisation of tax losses	( 218,154)	( 103,305)
	_________	_________
Tax on profit	9,023	( 82,126)
	_________	_________

10. Earnings per share

Basic earnings/(loss) per share

The earnings/(loss) and weighted average number of shares used in the calculation of basic earnings/(loss) per share are as follows:

	2022	2021
	£	£
Profit for the year attributable to the owners of the company	600,567	516,918
	_________	_________

Diluted earnings/(loss) per share

The earnings/(loss) and weighted average number of shares used in the calculation of diluted earnings/(loss) per share are as follows:

	2022	2021
	£	£
Earnings/(loss) used in calculation of basic earnings/(loss) per share	600,567	516,918
	_________	_________

11. Dividends

Equity dividends

	2022	2021
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year)	180,000	180,000
	_________	_________

12. Tangible assets

	Plant and machinery	Motor vehicles	Total
	£	£	£
Cost
At 1 January 2022	10,485,642	47,227	10,532,869
Additions	60,950	-	60,950
	_________	_________	_________
At 31 December 2022	10,546,592	47,227	10,593,819
	_________	_________	_________
Depreciation
At 1 January 2022	5,737,701	21,681	5,759,382
Charge for the year	884,878	5,287	890,165
	_________	_________	_________
At 31 December 2022	6,622,579	26,968	6,649,547
	_________	_________	_________
Carrying amount
At 31 December 2022	3,924,013	20,259	3,944,272
	_________	_________	_________
At 31 December 2021	4,747,941	25,546	4,773,487
	_________	_________	_________

Obligations under finance leases

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:


	Plant and machinery	Motor vehicles
	£	£
At 31 December 2022	3,715	20,265
	_________	_________
At 31 December 2021	18,248	23,082
	_________	_________

13. Stocks

	2022	2021
	£	£
Raw materials	745,331	596,173
Work in progress	141,886	289,893
	_________	_________
	887,217	886,066
	_________	_________

14. Debtors

	2022	2021
	£	£
Trade debtors	2,043,222	2,102,932
Amounts owed by group undertakings	4,257,005	4,254,820
Prepayments and accrued income	152,720	122,570
Other debtors	95,514	146,523
	_________	_________
	6,548,461	6,626,845
	_________	_________

15. Cash and cash equivalents

	2022	2021
	£	£
Cash at bank and in hand	105,694	97,673
Bank overdrafts	106,104	( 278,602)
	_________	_________
	211,798	( 180,929)
	_________	_________

16. Creditors: amounts falling due within one year

	2022	2021
	£	£
Bank loans and overdrafts	444,396	757,367
Trade creditors	1,730,885	2,097,272
Accruals and deferred income	769,409	813,927
Social security and other taxes	79,897	74,576
Obligations under finance leases	11,118	18,735
Other creditors	34,672	35,029
	_________	_________
	3,070,377	3,796,906
	_________	_________

17. Creditors: amounts falling due after more than one year

	2022	2021
	£	£
Bank loans and overdrafts	1,236,859	1,726,648
Accruals and deferred income	143,212	169,018
Obligations under finance leases	11,477	22,594
Other creditors	39,625	114,401
	_________	_________
	1,431,173	2,032,661
	_________	_________

18. Obligations under finance leases

Company lessee

The total future minimum lease payments under finance lease agreements are as follows:

	2022	2021
	£	£
Not later than 1 year	11,118	18,735
Later than 1 year and not later than 5 years	11,477	22,595
	_________	_________
	22,595	41,330
	_________	_________
Present value of minimum lease payments	22,595	41,330
	_________	_________

19. Provisions

	Deferred tax (note 20)	Total
	£	£
At 1 January 2022	557,603	557,603
Additions	9,023	9,023
	_________	_________
At 31 December 2022	566,626	566,626
	_________	_________

20. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2022	2021
	£	£
Included in provisions (note 19)	566,626	557,603
	_________	_________

The deferred tax account consists of the tax effect of timing differences in respect of:

	2022	2021
	£	£
Accelerated capital allowances	566,626	557,603
	_________	_________

21. Employee benefits

The amount recognised in profit or loss in relation to defined contribution plans was £ 70,570 (2021: £ 65,074 ).

22. Government grants

	2022	2021
	£	£
At start of period	194,824	171,173
Grants received or receivable	(-)	44,791
Released to the profit or loss	(25,806)	(21,140)
	_________	_________
At end of period	169,018	194,824
	_________	_________

The amounts recognised in the financial statements for government grants are as follows:

	2022	2021
	£	£
Recognised in creditors:
Deferred government grants due within one year	25,806	25,806
Deferred government grants due after more than one year	143,212	169,018
	_________	_________
	169,018	194,824
	_________	_________
Recognised in other operating income:
Government grants recognised directly in income	(-)	179,627
Government grants released to profit or loss	25,806	21,140
	_________	_________
	25,806	200,767
	_________	_________

23. Called up share capital

Issued, called up and fully paid

	2022		2021
	No	£	No	£
Ordinary shares shares of £ 1.00 each	2	2	2	2
	_________	_________	_________	_________

24. Reserves

Share premium account:This reserve records the amount above the nominal value received for shares sold, less transaction costs.Profit and loss account:This reserve records retained earnings and accumulated losses.

25. Analysis of changes in net debt

	At 1 January 2022	Cash flows	At 31 December 2022
	£	£	£
Cash and cash equivalents	97,673	8,021	105,694
Bank overdrafts	(278,602)	384,706	106,104
Debt due within one year	(497,500)	(64,118)	(561,618)
Debt due after one year	(1,863,643)	575,682	(1,287,961)
	_________	_________	_________
	( 2,542,072)	904,291	( 1,637,781)
	_________	_________	_________

26. Operating leases

The company as lessee

The total future minimum lease payments under non-cancellable operating leases are as follows:


	£	£

Not later than 1 year	31,677	35,104
Later than 1 year and not later than 5 years	33,270	18,605
	_________	_________
	64,947	53,709
	_________	_________

27. Limitation of auditors liability

The company has entered into a liability limitation agreement with the company's auditor which was approved on 7 January 23. The principal terms of the agreement are that the auditor's liability is limited to a multiple of the audit fee issued and paid for the year, but the multiple cannot be less than such amount as is fair and reasonable.

28. Related party transactions

W & G Baird is a 100% subsidiary of Sarcon (No.191) Limited.During the year the company made loan repayments and paid directors; salaries totalling £52,000 (2021: £142,560) on behalf of Sarcon (No 191) Limited. The company made audit payments of £2,800 (2021: £2,700) on behalf of Sarcon (No.191) Limited. The company also paid the directors £154,330 (2021: £121,812) on behalf of Sarcon (No.191) Limited. During the period Sarcon (No. 191) Limited received management charges of £211,706 (2021: £168,022) and dividends of £180,000 (2021: £180,000) from the company.Sarcon (No. 191) Limited owed the company £4,257,005 (2021: £4,194,820) at the balance sheet date.

29. Key management personnel

Key management personnel & the company's directors are the same persons. During the year they received compensation of £154,330 (2021: £121,812) from the parent company, Sarcon (No.191) Limited.

30. Controlling party

The company is controlled by its parent, Sarcon (No.191) Limited.