R. W. Simon Ltd - Limited company accounts 23.2

REGISTERED NUMBER: 00615240 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2023

for

R. W. Simon Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Income and Retained Earnings

9

Statement of Financial Position

10

Statement of Cash Flows

11

Notes to the Financial Statements

12

DIRECTORS:

Mr R A Simon

Mr J G Simon

Ms L C Simon

Mr P Simon

Miss I S Woolley

SECRETARY:

Mr T M Hitchins

REGISTERED OFFICE:

System Works

Hatchmoor Industrial Estate

Torrington

Devon

EX38 7HP

REGISTERED NUMBER:

00615240 (England and Wales)

SENIOR STATUTORY AUDITOR:

Edward Meardon FCA

INDEPENDENT AUDITORS:

Sumer Auditco Ltd

Statutory Auditors and Chartered Accountants

69 High Street

Bideford

Devon

EX39 2AT

The directors present their strategic report for the year ended 31 March 2023.

REVIEW OF BUSINESS

Turnover for the year increased by 18.49% to £12,948,614 due to a stronger UK construction market and demand from key UK plastics customers.

The directors consider the operating profit of £628,930 to be an excellent result, considering the upheaval in the UK market caused by the lingering effect of Covid and the recent invasion of Ukraine by Russia.

Although the Research and Development performed by the company is, by its nature, complex and of uncertain outcome, the day-to-day operations of the business is not complex. As such, the directors do not consider that there is a need to supply non-financial key performance indicators to assess the company.

The net shareholders value has risen by £410,050 to £5,298,087 over the year.

The directors consider the main risks to the business not to have changed from previous years and will continue with current policies and procedures that have served the business well in their management. However added to the main risks are the rising inflation of input costs and the lingering effects of the Covid-19 pandemic on the company and the markets that it serves.

The directors consider the continuing disruption to supply chains, exacerbated by the Russian invasion of the Ukraine, to also be a major risk to the company which may last into the medium term. Appropriate mitigation procedures are in place to lessen any adverse impacts on the business.

The directors are not aware of any significant risks or uncertainties which would cast significant doubt about the ability of the company to continue as a going concern.

RESULTS

The results for the year are set out in the statement of income and retained earnings on page 9.

FUTURE DEVELOPMENTS

The company continues its policy to invest substantial sums of money in both the development of new products and processes and the facilities to manufacture them in house in order to secure the long-term sustainability and future of the business.

RESEARCH AND DEVELOPMENT

The company has an ongoing program of in-house research and development into its areas of expertise to develop new and innovative products.

SIGNED ON BEHALF OF THE BOARD:

Mr T M Hitchins - Secretary

7 December 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the design, manufacture and marketing of ventilation products and other plastic goods.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2023 will be £150,010.

EVENTS SINCE THE END OF THE YEAR

Since the balance sheet date the company has entered into a 5 year hire purchase agreement on plant and machinery. The total payable is £578,911.

DIRECTORS

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

Mr R A Simon

Mr J G Simon

Ms L C Simon

Mr P Simon

Miss I S Woolley

DISCLOSURE IN THE STRATEGIC REPORT

Particulars of the financial risk management objectives and policies of the company and its subsidiaries, future developments and the policies on research and development are set out in the Strategic Report.

DIRECTORS' RESPONSIBILITIES STATEMENT

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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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.

SIGNED ON BEHALF OF THE BOARD:

Mr T M Hitchins - Secretary

7 December 2023

Opinion

We have audited the financial statements of R. W. Simon Ltd (the 'company') for the year ended 31 March 2023 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 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 March 2023 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 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 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:

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of this discussion we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. In common with all audits under UK ISAs we are also required to perform specific procedures to respond to the threat of management override. This work included testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to these laws and regulations, including fraud.

We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Health and Safety Act, UK Companies Act and UK tax legislation.

Our tests included agreeing the financial statements disclosures to underlying supporting documentation and enquiries with management.

We did not identify any key audit matters relating to irregularities, including fraud.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it.

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.

Edward Meardon FCA (Senior Statutory Auditor)

for and on behalf of Sumer Auditco Ltd

Statutory Auditors and Chartered Accountants

69 High Street

Bideford

Devon

EX39 2AT

14 December 2023

TURNOVER

4

12,948,614

10,928,164

Cost of sales

10,460,757

8,383,375

GROSS PROFIT

2,487,857

2,544,789

Distribution costs

426,013

384,834

Administrative expenses

1,432,914

1,371,851

1,858,927

1,756,685

OPERATING PROFIT

7

628,930

788,104

Interest receivable and similar income

2,246

133

631,176

788,237

Interest payable and similar expenses

9

1,132

3,360

PROFIT BEFORE TAXATION

630,044

784,877

Tax on profit

10

69,984

105,491

PROFIT FOR THE FINANCIAL YEAR

560,060

679,386

Retained earnings at beginning of year

4,828,033

4,253,654

Dividends

11

(150,010

)

(105,007

)

RETAINED EARNINGS AT END OF YEAR

5,238,083

4,828,033

FIXED ASSETS

Tangible assets

12

2,255,333

1,146,148

Investments

13

50,004

50,004

2,305,337

1,196,152

CURRENT ASSETS

Stocks

14

1,719,726

1,620,935

Debtors

15

3,572,997

2,920,639

Cash at bank and in hand

998,208

1,526,324

6,290,931

6,067,898

CREDITORS

Amounts falling due within one year

16

3,201,408

2,163,296

NET CURRENT ASSETS

3,089,523

3,904,602

TOTAL ASSETS LESS CURRENT LIABILITIES

5,394,860

5,100,754

CREDITORS

Amounts falling due after more than one year

17

-

(117,648

)

PROVISIONS FOR LIABILITIES

21

(96,773

)

(95,069

)

NET ASSETS

5,298,087

4,888,037

CAPITAL AND RESERVES

Called up share capital

22

60,004

60,004

Retained earnings

23

5,238,083

4,828,033

SHAREHOLDERS' FUNDS

5,298,087

4,888,037

The financial statements were approved by the Board of Directors and authorised for issue on 7 December 2023 and were signed on its behalf by:

Mr R A Simon - Director

Mr J G Simon - Director

Cash flows from operating activities

Cash generated from operations

28

1,313,068

854,779

Interest paid

(1,132

)

(3,360

)

Tax paid

(93,564

)

(75,590

)

Net cash from operating activities

1,218,372

775,829

Cash flows from investing activities

Purchase of tangible fixed assets

(1,490,223

)

(218,605

)

Sale of tangible fixed assets

25,750

-

Interest received

2,246

133

Net cash from investing activities

(1,462,227

)

(218,472

)

Cash flows from financing activities

Loan repayments in year

(134,251

)

(16,604

)

Equity dividends paid

(150,010

)

(105,007

)

Net cash from financing activities

(284,261

)

(121,611

)

(Decrease)/increase in cash and cash equivalents

(528,116

)

435,746

Cash and cash equivalents at beginning of year

29

1,526,324

1,090,578

Cash and cash equivalents at end of year

29

998,208

1,526,324

1.	STATUTORY INFORMATION

R. W. Simon Ltd 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 (£).

2.	STATEMENT OF COMPLIANCE

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. There were no material departures from that standard.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The principal accounting policies adopted in the preparation of the financial statements are set out below and remain unchanged from the previous period, and also have been consistently applied within the same accounts.

Preparation of consolidated financial statements

The financial statements contain information about R W Simon Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 402 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as both of its subsidiaries are immaterial, both individually and collectively.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Estimated useful lives

In determining the estimated useful life the company considers the expected usage (capacity or physical output) of the asset, expected physical wear and tear of the asset and expected technical advancements in the industry that could lead to obsolescence of the asset. Each year the company reviews the above to establish if there is any change is expected useful life of tangible assets.

Stock provision

Where estimated selling price less costs to complete and sell is lower than cost, a stock provision will be recorded. The estimated selling price is determined with reference to market values.

Provision for doubtful debts

Where estimated amounts receivable is less than the value of the debt included in the accounts, a provision for doubtful debts will be recorded.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates and value added tax. Revenue is recognised on despatch of goods.

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

-

Straight line over a maximum of 50 years and nil on land

Plant and machinery

-

Straight line over 1 to 10 years

Fixtures and fittings

-

Straight line over 2 to 5 years

Motor vehicles

-

Straight line over 3 to 5 years

Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended by management.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stock and work in progress are valued at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items.

Stock is measured at most recent purchase price which is considered to approximate cost.

Financial instruments

Basic financial instruments with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in administrative expenses. Loans and borrowings are initially recognised at the transaction price including transaction costs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

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

Tooling

Tooling purchased for use on own products is capitalised as fixed assets and depreciated over its estimated useful life in accordance with the tangible fixed assets policy.

Tooling purchased for specific customer products is recognised in the profit and loss account in cost of sales. The tooling is sold on to the end customer who is then the legal owner.

Going concern

Having regard to the company's anticipated future revenues and costs including repayment of debt where appropriate, together with the expected availability of working capital, the directors consider that it is appropriate to prepare the financial statements on the going concern basis.

4.

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:

2023

2022

£

£

United Kingdom

12,341,917

10,311,929

Europe

85,162

85,328

Rest of world

521,535

530,907

12,948,614

10,928,164

All turnover derives from the sale of goods.

5.	EMPLOYEES AND DIRECTORS

2023

2022

£

£

Wages and salaries

3,684,005

3,197,511

Social security costs

339,769

282,643

Other pension costs

169,343

161,945

4,193,117

3,642,099

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

2023

2022

Production

120

107

Office, sales and management

27

28

147

135

6.	DIRECTORS' EMOLUMENTS

2023

2022

£

£

Directors' remuneration

286,827

278,295

Directors' pension contributions to money purchase schemes

25,984

23,359

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

Money purchase schemes

1

1

Information regarding the highest paid director is as follows:

2023

2022

£

£

Emoluments etc

160,162

155,947

Pension contributions to money purchase schemes

25,984

23,359

During the year one of the directors received emoluments of £60,000 (2022 - £60,000) which are not included in the profit and loss account expense as they were included in a provision in a previous year.

7.	OPERATING PROFIT

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

2023

2022

£

£

Other operating leases

40,255

33,730

Depreciation - owned assets

407,249

324,674

(Profit)/loss on disposal of fixed assets

(17,088

)

1,702

8.	AUDITORS' REMUNERATION

2023

2022

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

11,767

8,500

9.

INTEREST PAYABLE AND SIMILAR EXPENSES

2023

2022

£

£

Bank interest

1,132

3,360

10.

TAXATION

Analysis of the tax charge

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

2023

2022

£

£

Current tax:

UK corporation tax

-

93,564

Deferred tax

69,984

11,927

Tax on profit

69,984

105,491

Reconciliation of total tax charge included in profit and loss

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

2023

2022

£

£

Profit before tax

630,044

784,877

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 - 19%)

119,708

149,127

Effects of:

Expenses not deductible for tax purposes

1,889

(1,902

)

Enhanced expenditure relief

-

(35,278

)

Depreciation of freehold property

5,422

5,176

Effect of deferred tax provided at 25%

22,434

-

Super deduction relief

(79,469

)

(11,632

)

Total tax charge

69,984

105,491

11.

DIVIDENDS

2023

2022

£

£

Interim

150,010

105,007

12.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 April 2022

1,058,901

4,856,205

228,622

237,217

6,380,945

Additions

23,140

1,466,623

5,343

29,990

1,525,096

Disposals

-

(153,485

)

-

(47,160

)

(200,645

)

At 31 March 2023

1,082,041

6,169,343

233,965

220,047

7,705,396

DEPRECIATION

At 1 April 2022

426,361

4,499,316

175,538

133,582

5,234,797

Charge for year

28,538

309,603

23,971

45,137

407,249

Eliminated on disposal

-

(153,485

)

-

(38,498

)

(191,983

)

At 31 March 2023

454,899

4,655,434

199,509

140,221

5,450,063

NET BOOK VALUE

At 31 March 2023

627,142

1,513,909

34,456

79,826

2,255,333

At 31 March 2022

632,540

356,889

53,084

103,635

1,146,148

Included in cost of land and buildings is freehold land of £ 150,000 (2022 - £ 150,000 ) which is not depreciated.

All of the fixed assets of the company have been pledged as security for liabilities.

13.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 April 2022

and 31 March 2023

50,004

NET BOOK VALUE

At 31 March 2023

50,004

At 31 March 2022

50,004