Wheeler Electrical Limited - Limited company accounts 23.2
Wheeler Electrical Limited - Limited company accounts 23.2
| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 |
| FOR |
| WHEELER ELECTRICAL LIMITED |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MAY 2023 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Income Statement | 9 |
| Other Comprehensive Income | 10 |
| Statement of Financial Position | 11 |
| Statement of Changes in Equity | 12 |
| Statement of Cash Flows | 13 |
| Notes to the Statement of Cash Flows | 14 |
| Notes to the Financial Statements | 16 |
| WHEELER ELECTRICAL LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 MAY 2023 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Church View Chambers |
| 38 Market Square |
| Toddington |
| Bedfordshire |
| LU5 6BS |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 MAY 2023 |
| The directors present their strategic report for the year ended 31 May 2023. |
| REVIEW OF BUSINESS |
| The principal activity of the company in the year under review was that of electrical installation. |
| Results and performance |
| This has been another year of strong trading and financial performance as we delivered a record turnover for the company for the second year running, and maintained strong margins in an environment of increasing costs. |
| Demand for new housebuilding remained robust in the first three quarters of 2022, but as we moved into the last quarter and then into 2023 the economic environment of increasing inflation and corresponding increases in the bank base rate has had a significant impact on the housing market. As house prices fell during this year, housebuilders have slowed output and scaled back future projects. |
| The industry as a whole remains competitive, with continuing pressure on margins from increasing material and labour costs. Material price inflation has slowed more recently but skilled labour shortages continue to drive up costs. |
| In this environment the company has delivered a very strong financial performance and remains in a strong position. We have reviewed our processes to allow us to purchase more efficiently and improve our pricing competitiveness, and we are continually developing our internal control and reporting processes to drive efficiency. |
| Our order book is strong and we are well placed to manage our way through any short term difficulties. Our cashflow has remained strong during the year, and our supply chain has remained robust. |
| In our opinion the key financial performance indicators are as follows; |
| 2023 | 2022 | 2021 |
| Gross profit ratio | 20.42% | 19.43% | 21.42% |
| Net profit ratio | 6.99% | 5.86% | 9.66% |
| Turnover | £18,470,319 | £15,727,781 | 13,864,953 |
| Turnover growth | 17.44% | 13.44% | 32.63% |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 MAY 2023 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The expectation is that reduced demand for housebuilding will have an impact throughout the remainder of 2023 and into at least the first part of 2024. As inflationary pressures start to ease and interest rates stabilise the industry should start to see a recovery in project starts during 2024 and into 2025. |
| Our order book remains very strong and we offset the slowdown on our housebuilding contracts with larger developments that have continued to progress at pace. The difficulties in the market which have seen some competitors cease trading also provide opportunities for us to bring in new business. |
| The key risks in the coming months are: |
| - potential shortage of skilled labour |
| - increasing costs for materials and labour impacting profitability on fixed price contracts |
| - inflationary pressures returning and resulting in further interest rate increases, which further impact demand in the wider housing market |
| The short-term outlook for the housebuilding industry remains difficult but we are very well placed to weather this, and with longer-term growth still expected, particularly in the private housebuilding market, with the strength of our business we remain confident for the future. |
| ON BEHALF OF THE BOARD: |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 MAY 2023 |
| The directors present their report with the financial statements of the company for the year ended 31 May 2023. |
| DIVIDENDS |
| The total distribution of dividends for the year ended 31 May 2023 will be £800,500 (2022: £305,000). |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 June 2022 to the date of this report. |
| POLITICAL DONATIONS AND EXPENDITURE |
| During the year, the company made no political donations. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 MAY 2023 |
| AUDITORS |
| The auditors, Landers Accountants Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| WHEELER ELECTRICAL LIMITED |
| Opinion |
| We have audited the financial statements of Wheeler Electrical Limited (the 'company') for the year ended 31 May 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 May 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| WHEELER ELECTRICAL LIMITED |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| - Results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
| - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; |
| - 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. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| WHEELER ELECTRICAL LIMITED |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| Church View Chambers |
| 38 Market Square |
| Toddington |
| Bedfordshire |
| LU5 6BS |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| INCOME STATEMENT |
| FOR THE YEAR ENDED 31 MAY 2023 |
| 31.5.23 | 31.5.22 |
| Notes | £ | £ |
| REVENUE |
| Cost of sales |
| GROSS PROFIT |
| Administrative expenses |
| 1,312,905 | 945,163 |
| Other operating income | 3 |
| OPERATING PROFIT | 5 |
| Interest receivable and similar income |
| 1,321,974 | 952,358 |
| Interest payable and similar expenses | 6 |
| PROFIT BEFORE TAXATION |
| Tax on profit | 7 |
| PROFIT FOR THE FINANCIAL YEAR |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31 MAY 2023 |
| 31.5.23 | 31.5.22 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| STATEMENT OF FINANCIAL POSITION |
| 31 MAY 2023 |
| 31.5.23 | 31.5.22 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Property, plant and equipment | 9 |
| CURRENT ASSETS |
| Inventories | 10 |
| Debtors | 11 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 12 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 18 |
| Capital redemption reserve | 19 |
| Retained earnings | 19 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 MAY 2023 |
| Called up | Capital |
| share | Retained | redemption | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 June 2021 |
| Changes in equity |
| Dividends | - | ( |
) | - | ( |
) |
| Total comprehensive income | - |
| Balance at 31 May 2022 | 110 | 2,890,226 | 2,890,441 |
| Changes in equity |
| Dividends | - | ( |
) | - | ( |
) |
| Total comprehensive income | - |
| Balance at 31 May 2023 |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31 MAY 2023 |
| 31.5.23 | 31.5.22 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Interest paid | ( |
) | ( |
) |
| Interest element of hire purchase payments paid |
( |
) |
( |
) |
| Tax paid | ( |
) | ( |
) |
| Taxation refund |
| Net cash from operating activities |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Sale of tangible fixed assets |
| Interest received |
| Net cash from investing activities | ( |
) | ( |
) |
| Cash flows from financing activities |
| Loan repayments in year | ( |
) | ( |
) |
| Advances in year |
| Amount introduced by directors | 16,707 | 6,832 |
| Amount withdrawn by directors | (16,707 | ) | (6,832 | ) |
| Equity dividends paid | ( |
) | ( |
) |
| Net cash from financing activities | ( |
) | ( |
) |
| (Decrease)/increase in cash and cash equivalents | ( |
) |
| Cash and cash equivalents at beginning of year |
2 |
951,874 |
| Cash and cash equivalents at end of year |
2 |
127,791 |
1,216,138 |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| NOTES TO THE STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31 MAY 2023 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 31.5.23 | 31.5.22 |
| £ | £ |
| Profit before taxation |
| Depreciation charges |
| Loss/(profit) on disposal of fixed assets | ( |
) |
| Increase/(Decrease) in group company | (252,656 | ) | (540,241 | ) |
| Other provision | (18,643 | ) | 18,643 |
| Finance costs | 30,229 | 31,494 |
| Finance income | (2,979 | ) | (608 | ) |
| 1,286,898 | 610,202 |
| Increase in inventories | ( |
) |
| (Increase)/decrease in trade and other debtors | ( |
) |
| Increase/(decrease) in trade and other creditors | ( |
) |
| Cash generated from operations |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
| Year ended 31 May 2023 |
| 31.5.23 | 1.6.22 |
| £ | £ |
| Cash and cash equivalents | 127,791 | 1,216,138 |
| Year ended 31 May 2022 |
| 31.5.22 | 1.6.21 |
| £ | £ |
| Cash and cash equivalents | 1,216,138 | 951,874 |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| NOTES TO THE STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31 MAY 2023 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
| At 1.6.22 | Cash flow | At 31.5.23 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 1,216,138 | (1,088,347 | ) | 127,791 |
| 1,216,138 | ( |
) | 127,791 |
| Debt |
| Finance leases | (709,802 | ) | (35,752 | ) | (745,554 | ) |
| Debts falling due within 1 year | (84,211 | ) | 84,211 | - |
| Debts falling due after 1 year | (168,421 | ) | 168,421 | - |
| (962,434 | ) | 216,880 | (745,554 | ) |
| Total | 253,704 | (871,467 | ) | (617,763 | ) |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MAY 2023 |
| 1. | STATUTORY INFORMATION |
| Wheeler Electrical Limited is a private company, limited by shares, registered in England and Wales. Its registered office is Church View Chambers, 38 Market Square, Toddington, Bedfordshire, LU5 6BS. |
| Its principal place of business is Unit 3-4, Blackmoore Business Park, New Road, Maulden, MK45 2BG. |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention and on a going concern basis. |
| Turnover |
| Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Tangible fixed assets |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| All fixed assets are initially recorded at cost. |
| Government grants |
| A government grant is recognised only when there is reasonable assurance that (a) the entity will comply with any conditions attached to the grant and (b) the grant will be received. |
| The grant is recognised as income over the period necessary to match them with the related costs, for which they are intended to compensate, on a systematic basis. |
| Inventories |
| Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Financial instruments |
| Financial instruments are classified by the directors as basic or advanced following the conditions in FRS102 Section 11. Basic financial instruments are recognised at amortised cost using the effective interest method. |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| 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. |
| Hire purchase and leasing commitments |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
| The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Lease modifications provided by the lessor to the lessee are recognised in the period benefiting from the payment holiday. |
| 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. |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2023 |
| 3. | OTHER OPERATING INCOME |
| 31.5.23 | 31.5.22 |
| £ | £ |
| Sundry receipts | 590 | 1,082 |
| Government grants |
| 6,090 | 6,587 |
| The company received apprenticeship grants amounting to £5,500 (2022: £5,505). |
| There are no unfulfilled conditions or other contingencies attached to these grants. |
| 4. | EMPLOYEES AND DIRECTORS |
| 31.5.23 | 31.5.22 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 31.5.23 | 31.5.22 |
| Number of directors | 2 | 2 |
| Number of operational staff | 94 | 86 |
| 31.5.23 | 31.5.22 |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2023 |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 31.5.23 | 31.5.22 |
| £ | £ |
| Hire of plant and machinery |
| Depreciation - owned assets |
| Depreciation - assets on hire purchase contracts |
| Loss/(profit) on disposal of fixed assets | ( |
) |
| Auditors' remuneration |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 31.5.23 | 31.5.22 |
| £ | £ |
| Bank interest |
| Hire purchase |
| 7. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 31.5.23 | 31.5.22 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Deferred tax |
| Tax on profit |
| UK corporation tax has been charged at 20% (2022 - 19%). |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2023 |
| 7. | TAXATION - continued |
| 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: |
| 31.5.23 | 31.5.22 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of |
| Effects of: |
| Expenses not deductible for tax purposes |
| Depreciation in excess of capital allowances |
| Deferred tax: origination and reversal of timing differences | 29,605 | (34,232 | ) |
| Tax refund | (232,600 | ) | - |
| Total tax charge | 98,567 | 170,914 |
| 8. | DIVIDENDS |
| 31.5.23 | 31.5.22 |
| £ | £ |
| Ordinary shares of £1 each |
| Interim |
| Ordinary B shares of £1 each |
| Interim |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2023 |
| 9. | PROPERTY, PLANT AND EQUIPMENT |
| Fixtures |
| Plant and | and | Motor |
| machinery | fittings | vehicles | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 June 2022 |
| Additions |
| Disposals | ( |
) | ( |
) |
| At 31 May 2023 |
| DEPRECIATION |
| At 1 June 2022 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) |
| At 31 May 2023 |
| NET BOOK VALUE |
| At 31 May 2023 |
| At 31 May 2022 |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Motor |
| vehicles |
| £ |
| COST |
| At 1 June 2022 |
| Additions |
| Disposals | ( |
) |
| At 31 May 2023 |
| DEPRECIATION |
| At 1 June 2022 |
| Charge for year |
| Eliminated on disposal | ( |
) |
| At 31 May 2023 |
| NET BOOK VALUE |
| At 31 May 2023 |
| At 31 May 2022 |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2023 |
| 10. | INVENTORIES |
| 31.5.23 | 31.5.22 |
| £ | £ |
| Raw materials |
| 11. | DEBTORS |
| 31.5.23 | 31.5.22 |
| £ | £ |
| Amounts falling due within one year: |
| Trade debtors |
| Amounts owed by group undertakings |
| Other debtors |
| VAT |
| Prepayments and accrued income |
| Amounts falling due after more than one year: |
| Trade debtors |
| Aggregate amounts |
| 12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 31.5.23 | 31.5.22 |
| £ | £ |
| Bank loans and overdrafts (see note 14) |
| Hire purchase contracts (see note 15) |
| Trade creditors |
| Tax |
| Social security and other taxes |
| Other creditors |
| Accruals and deferred income |
| 13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 31.5.23 | 31.5.22 |
| £ | £ |
| Bank loans (see note 14) |
| Hire purchase contracts (see note 15) |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2023 |
| 14. | LOANS |
| An analysis of the maturity of loans is given below: |
| 31.5.23 | 31.5.22 |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Bank loans |
| Amounts falling due between one and two years: |
| Bank loans - 1-2 years |
| Amounts falling due between two and five years: |
| Bank loans - 2-5 years |
| 15. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Hire purchase | contracts |
| 31.5.23 | 31.5.22 |
| £ | £ |
| Gross obligations repayable: |
| Within one year |
| Between one and five years |
| Finance charges repayable: |
| Within one year |
| Between one and five years |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2023 |
| 15. | LEASING AGREEMENTS - continued |
| Non-cancellable | operating leases |
| 31.5.23 | 31.5.22 |
| £ | £ |
| Within one year |
| Between one and five years |
| 16. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 31.5.23 | 31.5.22 |
| £ | £ |
| Bank loans |
| Hire purchase contracts | 745,554 | 709,802 |
| The bank holds an all assets debenture dated 21st May 2018 incorporating a fixed and floating charge over all current and future assets of the company. |
| 17. | PROVISIONS FOR LIABILITIES |
| 31.5.23 | 31.5.22 |
| £ | £ |
| Deferred tax | 197,789 | 168,184 |
| Other provisions | - | 18,643 |
| Deferred |
| tax |
| £ |
| Balance at 1 June 2022 |
| Movement in the year | 29,605 |
| Balance at 31 May 2023 |
| WHEELER ELECTRICAL LIMITED (REGISTERED NUMBER: 00801027) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2023 |
| 18. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.5.23 | 31.5.22 |
| value: | £ | £ |
| Ordinary | £1 | 100 | 100 |
| Ordinary B | £1 | 10 | 10 |
| 110 | 110 |
| 19. | RESERVES |
| Capital |
| Retained | redemption |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 June 2022 | 2,890,331 |
| Profit for the year |
| Dividends | ( |
) | ( |
) |
| At 31 May 2023 | 3,283,009 |
| 20. | RELATED PARTY DISCLOSURES |
| The total remuneration of key management personnel in 2023 (including salaries and other benefits) was £38,691 (2022: £61,758). |
| 21. | ULTIMATE CONTROLLING PARTY |
| Both directors of Wheeler Electrical Limited are directors of TDH Wheeler Limited and they hold a joint controlling interest of 100% in TDH Wheeler Limited. |