Appleton & Sons Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 00568726 (England and Wales)

APPLETON & SONS LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MAY 2023

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

Mr G H Appleton

Mr R Appleton

Mr J Appleton

SECRETARY:

Mr G H Appleton

REGISTERED OFFICE:

17 Towcester Road

Bow

London

E3 3ND

REGISTERED NUMBER:

00568726 (England and Wales)

ACCOUNTANTS:

Sinclairs Bartrum Lerner

Chartered Accountants

Second Floor

34 Lime Street

London

EC3M 7AT

FIXED ASSETS

Tangible assets

4

317,303

305,135

Investments

5

7,500

7,500

Investment properties

6

9,413,187

9,240,912

9,737,990

9,553,547

CURRENT ASSETS

Stocks

7

1,473,262

1,197,308

Debtors

8

257,865

246,658

Cash at bank and in hand

581,489

885,568

2,312,616

2,329,534

CREDITORS

Amounts falling due within one year

9

804,449

715,538

NET CURRENT ASSETS

1,508,167

1,613,996

TOTAL ASSETS LESS CURRENT LIABILITIES

11,246,157

11,167,543

PROVISIONS FOR LIABILITIES

10

1,161,268

1,159,150

NET ASSETS

10,084,889

10,008,393

CAPITAL AND RESERVES

Called up share capital

11

40,000

40,000

Other reserve

12

4,700,201

4,700,201

Retained earnings

12

5,344,688

5,268,192

SHAREHOLDERS' FUNDS

10,084,889

10,008,393

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st May 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st May 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 11th October 2023 and were signed on its behalf by:

Mr G H Appleton - Director

1.	STATUTORY INFORMATION

Appleton & Sons Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

The company is wholesaler of confectionery, stationery and groceries. It receives rents from investment properties.It develops and trades in properties.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities of Financial Reporting Standard 102 section 1A "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 as modified by the revaluation of certain assets.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Judgements in applying the entity's accounting policies

The directors have used a "Yield" method to estimate the fair value of the properties allied to a comparative analysis of third party sales of similar properties. This methodology was based on the current local residential investment market.

Accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year are addressed below.

a) Useful economic lives of assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on future investments, economic utilisation and the physical condition of the assets.

(b) Stock provision

The company is a wholesaler of confectionery, stationery and groceries and these goods are subject to changing consumer demands and trends. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of stock.

(c) Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Turnover

Turnover is measured at the fair value of the consideration received or receivable. Wholesale grocery turnover represents the amount receivable for the supply of confectionery and groceries, net of returns, discounts and rebates allowed by the company and value added tax.Property stock turnover represents the sale proceeds of properties net of selling costs and disbursements.

The company recognises revenue when (a) the significant risk and rewards of ownership have been transferred to the buyer; (b) the company retains no continuing involvement or control over the goods and (c) the amount of revenue can be measured reliably.

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% straight line on cost

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

20% straight line on cost

Tangible assets are shown at their fair values as at the Balance Sheet date.

Investment properties

Investment properties are shown at their fair value. Any adjustment to the fair value of the investment properties is recognised in the Income Statement for the year.

In accordance with FRS 102 section 1A, no depreciation is provided in respect of properties held as investments. This is a departure from the requirements of the Companies Act 2006 which requires all properties to be depreciated. Such properties are held for investment and not for consumption and the directors consider that to depreciate them would not give a true and fair view. Depreciation is only one of the many elements reflected in the annual valuation of properties and accordingly the amount of depreciation which might otherwise have been charged cannot be separately identified or quantified. The directors consider that this policy results in the financial statements giving a true and fair view.

Stocks

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

Stocks at the year end includes goods and properties for resale.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position 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

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions payable for the year are charged in the profit and loss account.

Basic financial instruments

Trade and other debtors / creditors

Trade and other debtors are recognised initially at transaction price less attributable transaction costs.

Subsequent to initial recognition, they are measured at transaction price less any impairment losses.

Trade and other creditors are recognised initially at transaction price plus attributable transaction costs.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and deposits.

Other reserves

Other reserves is a non-distributable reserve and represents the net balance between the adjustment to the fair value of tangible assets and its related deferred tax provision.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 16 (2022 - 16 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1st June 2022

308,148

110,472

180,282

Additions

-

-

-

At 31st May 2023

308,148

110,472

180,282

DEPRECIATION

At 1st June 2022

121,210

95,201

178,707

Charge for year

3,568

2,291

236

At 31st May 2023

124,778

97,492

178,943

NET BOOK VALUE

At 31st May 2023

183,370

12,980

1,339

At 31st May 2022

186,938

15,271

1,575

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1st June 2022

135,135

5,600

739,637

Additions

58,135

-

58,135

At 31st May 2023

193,270

5,600

797,772

DEPRECIATION

At 1st June 2022

33,784

5,600

434,502

Charge for year

39,872

-

45,967

At 31st May 2023

73,656

5,600

480,469

NET BOOK VALUE

At 31st May 2023

119,614

-

317,303

At 31st May 2022

101,351

-

305,135

Included in cost of land and buildings is freehold land of £ 129,725 (2022 - £ 129,725 ) which is not depreciated.

5.	FIXED ASSET INVESTMENTS

Unlisted

investments

£

COST

At 1st June 2022

and 31st May 2023

7,500

NET BOOK VALUE

At 31st May 2023

7,500

At 31st May 2022

7,500

6.	INVESTMENT PROPERTIES

Total

£

FAIR VALUE

At 1st June 2022

9,240,912

Additions

172,275

At 31st May 2023

9,413,187

NET BOOK VALUE

At 31st May 2023

9,413,187

At 31st May 2022

9,240,912

Investment properties were valued by the directors on an open market values at the year end. In their opinion there was no material variance in the valuation of the properties from their 2022 values.

The estimated deferred tax provision based on the fair valued amount was provided in the financial statements. The total deferred tax provision included in the financial statements based on fair valuation todate was £1,129,601 (2022: £1,129,601).

Fair value at 31st May 2023 is represented by:

£

Valuation in 2002

1,091,520

Valuation in 2003

607,000

Valuation in 2004

554,000

Valuation in 2006

509,942

Valuation in 2007

77,000

Valuation in 2008

(452,000

)

Valuation in 2014

604,213

Valuation in 2016

1,563,527

Valuation in 2017

957,000

Valuation in 2018

317,600

Cost

3,583,385

9,413,187

7.

STOCKS

2023

2022

£

£

Stocks

1,473,262

1,197,308

Stocks at the year end:

2023

2022

£

£

Stocks - goods for resale

1,133,867

857,913

Stocks - properties for sale

339,395

339,395

---------------

----------------

1,473,262

1,197,308

=========

========

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

101,279

95,643

Other debtors

156,586

151,015

257,865

246,658

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade creditors

478,978

397,468

Tax

44,029

65,659

PAYE and NIC taxes

10,420

-

VAT

18,047

-

Other creditors

1,018

5,516

Net wages control

12,465

11,971

Directors' current accounts

212,943

209,235

Accruals and deferred income

26,549

25,689

804,449

715,538

10.	PROVISIONS FOR LIABILITIES

2023

2022

£

£

Deferred tax

Accelerated capital allowances

31,667

29,549

Deferred tax- Fair valued Investment properties

1,129,601

1,129,601

1,161,268

1,159,150

Deferred tax

£

Balance at 1st June 2022

1,159,150

Provided during year

2,118

Excess of tax allowances over

depreciation

Balance at 31st May 2023

1,161,268

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2023

2022

value:

£

£

20,000

Ordinary "A"

£1

20,000

20,000

4,000

Ordinary "B"

£5

20,000

20,000

40,000

40,000

12.

RESERVES

Retained

Other

earnings

reserve

Totals

£

£

£

At 1st June 2022

5,268,192

4,700,201

9,968,393

Profit for the year

186,496

-

186,496

Dividends

(110,000

)

-

(110,000

)

At 31st May 2023

5,344,688

4,700,201

10,044,889

Retained Earnings

Retained earnings includes all current and prior period retained profits and losses net of tax and distributions.

Other Reserve

Other reserve represents the net unrealised surplus arising on the fair revaluation of the investment properties.

13.	CONTINGENT LIABILITIES

At the Balance Sheet date, there was a legal charge over the company's freehold property at 17 Towcester Road, Bow, London, E3 3ND.

14.	RELATED PARTY DISCLOSURES

At the Balance sheet date, the following sums were owed to the directors. These balances are interest free and repayable on demand.

Amounts owed to the directors:

2023

2022

£

£

G H Appleton

185,754

179,154

J Appleton

27,189

30,081