Calder Textiles Limited - Limited company accounts 23.2

REGISTERED NUMBER: 01803068 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

FOR

CALDER TEXTILES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Profit and Loss Account

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DIRECTORS:

Gregory Quinton Bedford

Derek John Bedford

David Kevin Bedford

Carol Lesley Brown

Mark Mawson

Tracy Jane Wadsworth

Timothy Booth

REGISTERED OFFICE:

Anchor House

Dewsbury Mills

Thornhill Road

Dewsbury

West Yorkshire

WF12 9QE

REGISTERED NUMBER:

01803068 (England and Wales)

AUDITORS:

Walter Dawson & Son

Chartered Accountants

First Floor, Unit 12

Pennine Business Park

Longbow Close, Bradley

Huddersfield

West Yorkshire

HD2 1GQ

The directors present their strategic report for the year ended 30 June 2023.

REVIEW OF BUSINESS

We continue to supply specialist woollen carpet yarn, hank dyeing and fibre dyeing services.

Our sales continued to recover from the effects of covid. In 2023 our turnover was 10% higher than the previous year but only 1% higher than 2019. Adjusting for inflation in real terms we are still below pre-covid levels but sales are increasing and we are seeing high demand for our products in all sectors retail, contract, and aviation

In 2022 we invested in a CHP plant which produces electricity for the site and heat to pre warm water for our dyehouse. This has proved a good investment and is necessary to allow further expansion in our dyeing facilities. There is a shortage of efficient dyehouses in the UK, consequently we have already expanded our dyeing capacity to cope with increasing demands. In addition we are constructing a building for our new pressure dyeing facility which should complete towards to end of this year.

PRINCIPAL RISKS AND UNCERTAINTIES

We have seen a number of challenges post covid. As a yarn spinner and dyer we are a large user of power and gas, both have increased hugely due to the Russia/Ukraine conflict which began in February 2022. Fortunately our CHP has mitigated some of this, but this continues to be a major concern for us. We are installing Solar panels which should save £2m over a 25 year period.

The cost of freight increased massively before falling back but raw materials have risen slightly. Inflation, consumable prices and wages increases are a challenge and the costs have had to be passed onto our customers.

ON BEHALF OF THE BOARD:

Gregory Quinton Bedford - Director

27 March 2024

The directors present their report with the financial statements of the company for the year ended 30 June 2023.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of yarn spinners.

DIVIDENDS

No dividends will be distributed for the year ended 30 June 2023.

DIRECTORS

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

Gregory Quinton Bedford

Derek John Bedford

David Kevin Bedford

Carol Lesley Brown

Mark Mawson

Tracy Jane Wadsworth

Timothy Booth

DIRECTORS INTERESTS

The directors holding office at 30th June 2023 did not hold any beneficial interest in the issued share capital of the company at 1st July 2022 (or date of appointment if later) or 30th June 2023.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Walter Dawson & Son, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Gregory Quinton Bedford - Director

27 March 2024

Opinion

We have audited the financial statements of Calder Textiles Limited (the 'company') for the year ended 30 June 2023 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 June 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 Statement of Directors' Responsibilities set out on page three, 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:

Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through dicussions with directors and other management, and form our commercial knowledge and experience of the sector;

- we focussed on specific laws and regulations which considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was a susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and overide of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 and where indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

John Richard Hall FCA (Senior Statutory Auditor)

for and on behalf of Walter Dawson & Son

Chartered Accountants

First Floor, Unit 12

Pennine Business Park

Longbow Close, Bradley

Huddersfield

West Yorkshire

HD2 1GQ

27 March 2024

TURNOVER

3

11,696,349

10,594,709

Cost of sales

9,623,451

8,657,433

GROSS PROFIT

2,072,898

1,937,276

Distribution costs

930,887

884,270

Administrative expenses

954,963

900,410

1,885,850

1,784,680

187,048

152,596

Other operating income

12,225

113,634

OPERATING PROFIT

5

199,273

266,230

Interest payable and similar expenses

6

51,663

13,130

PROFIT BEFORE TAXATION

147,610

253,100

Tax on profit

7

144,842

117,625

PROFIT FOR THE FINANCIAL YEAR

2,768

135,475

PROFIT FOR THE YEAR

2,768

135,475

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,768

135,475

FIXED ASSETS

Tangible assets

8

2,089,516

2,325,855

CURRENT ASSETS

Stocks

9

1,244,061

1,163,760

Debtors

10

3,110,201

2,614,940

Cash at bank and in hand

24

409,780

4,354,286

4,188,480

CREDITORS

Amounts falling due within one year

11

2,549,937

2,631,895

NET CURRENT ASSETS

1,804,349

1,556,585

TOTAL ASSETS LESS CURRENT LIABILITIES

3,893,865

3,882,440

CREDITORS

Amounts falling due after more than one year

12

(308,333

)

(375,000

)

PROVISIONS FOR LIABILITIES

16

(286,573

)

(211,249

)

NET ASSETS

3,298,959

3,296,191

CAPITAL AND RESERVES

Called up share capital

17

112,000

112,000

Profit and loss account

3,186,959

3,184,191

SHAREHOLDERS' FUNDS

3,298,959

3,296,191

The financial statements were approved by the Board of Directors and authorised for issue on 27 March 2024 and were signed on its behalf by:

Gregory Quinton Bedford - Director

Carol Lesley Brown - Director

Called up

Profit

share

and loss

Total

capital

account

equity

£

£

£

Balance at 1 July 2021

112,000

3,048,716

3,160,716

Changes in equity

Profit for the year

-

135,475

135,475

Total comprehensive income

-

135,475

135,475

Balance at 30 June 2022

112,000

3,184,191

3,296,191

Changes in equity

Profit for the year

-

2,768

2,768

Total comprehensive income

-

2,768

2,768

Balance at 30 June 2023

112,000

3,186,959

3,298,959

Cash flows from operating activities

Cash generated from operations

1

(237,808

)

621,634

Interest paid

(51,663

)

(13,129

)

Government grants

-

15,428

Net cash from operating activities

(289,471

)

623,933

Cash flows from investing activities

Purchase of tangible fixed assets

(452,869

)

(1,633,577

)

Sale of tangible fixed assets

3,150

11,741

Transfer of tangible fixed assets

365,886

-

Net cash from investing activities

(83,833

)

(1,621,836

)

Cash flows from financing activities

Loan repayments in year

(500,000

)

-

Capital repayments in year

408,333

-

Repayment of group loans in the year

(103,425

)

614,917

Net cash from financing activities

(195,092

)

614,917

Decrease in cash and cash equivalents

(568,396

)

(382,986

)

Cash and cash equivalents at beginning of year

2

409,780

792,766

Cash and cash equivalents at end of year

2

(158,616

)

409,780

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

2023

2022

£

£

Profit before taxation

147,610

253,100

Depreciation charges

323,324

264,233

Profit on disposal of fixed assets

(3,150

)

-

Government grants

-

(15,428

)

Finance costs

51,663

13,130

519,447

515,035

(Increase)/decrease in stocks

(80,301

)

242,917

Increase in trade and other debtors

(572,752

)

(752,747

)

(Decrease)/increase in trade and other creditors

(104,202

)

616,429

Cash generated from operations

(237,808

)

621,634

2.	CASH AND CASH EQUIVALENTS

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

Year ended 30 June 2023

30.6.23

1.7.22

£

£

Cash and cash equivalents

24

409,780

Bank overdrafts

(158,640

)

-

(158,616

)

409,780

Year ended 30 June 2022

30.6.22

1.7.21

£

£

Cash and cash equivalents

409,780

792,766

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.7.22

Cash flow

At 30.6.23

£

£

£

Net cash

Cash at bank and in hand

409,780

(409,756

)

24

Bank overdrafts

-

(158,640

)

(158,640

)

409,780

(568,396

)

(158,616

)

Debt

Finance leases

-

(408,333

)

(408,333

)

Debts falling due within 1 year

(125,000

)

125,000

-

Debts falling due after 1 year

(375,000

)

375,000

-

(500,000

)

91,667

(408,333

)

Total

(90,220

)

(476,729

)

(566,949

)

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

RELATED PARTY EXEMPTION

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

TURNOVER

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

TANGIBLE FIXED ASSETS

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

Short leasehold

-

5% on cost or valuation

Plant and machinery

-

12.5% on cost

Motor vehicles

-

25% on cost

STOCKS

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

TAXATION

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

Current or deferred taxation assets and liabilities are not discounted.

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

DEFERRED TAX

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

FOREIGN CURRENCIES

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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

Tangible fixed assets acquired under finance leases or hire purchase contracts are capitalised and depreciated in the same manner as other tangible fixed assets. The related obligations, net of future charges, are included in creditors.

Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the period of the leases. The benefits of lease incentives are recognised in the profit and loss account over the shorter of the lease period and the period to the next rent review at which the rent is expected to be reset to market rates.

PENSION COSTS

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.

HIRE PURCHASE AND LEASING

Tangible fixed assets acquired under finance leases or hire purchase contracts are capitalised and depreciated in the same manner as other tangible fixed assets. The related obligations, net of future charges, are included in creditors.

Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the period of the leases. The benefits of lease incentives are recognised in the profit and loss account over the shorter of the lease period and the period to the next rent review at which the rent is expected to be reset to market rates.

INCOME RECOGNITION

Income is recognised when goods have been delivered to customers such that the risks and rewards of ownership have transferred to them.

FINANCE COST OF DEBT

The finance costs of debt, including interest and issue costs, are allocated to each period over the term of the debt and charged to the profit and loss account at a constant rate on the outstanding amount.

3.

TURNOVER

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

4.	EMPLOYEES AND DIRECTORS

2023

2022

£

£

Wages and salaries

3,603,958

3,312,564

Social security costs

32,274

31,356

Other pension costs

232,013

59,818

3,868,245

3,403,738

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

2023

2022

Distribution and selling

2

2

Production

115

115

Administration

8

8

125

125

2023

2022

£

£

Directors' remuneration

274,028

277,294

Directors' pension contributions to money purchase schemes

109,000

41,500

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

Money purchase schemes

5

5

Information regarding the highest paid director is as follows:

2023

2022

£

£

Emoluments etc

61,649

54,808

5.	OPERATING PROFIT

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

2023

2022

£

£

Hire of plant and machinery

12,129

-

Depreciation - owned assets

323,322

264,233

Profit on disposal of fixed assets

(3,150

)

-

Auditors' remuneration

14,178

11,389

Foreign exchange differences

(32,213

)

(17,847

)

Operating leases

170,846

166,600

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2023

2022

£

£

Bank interest

13,529

7,887

Bank loan interest

38,134

1,798

Group support interest

-

3,445

51,663

13,130

7.

TAXATION

Analysis of the tax charge

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

2023

2022

£

£

Deferred tax

144,842

117,625

Tax on profit

144,842

117,625

RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS

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

2023

2022

£

£

Profit before tax

147,610

253,100

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

28,046

48,089

Effects of:

Utilisation of tax losses

-

33,442

Depreciation on assets excluded from capital allowances

274

274

Super deduction 130%

-

(93,115

)

Group loss relief

47,745

128,935

Tax rate adjustment to deferred tax - 19% to 25%%

68,777

-

Total tax charge

144,842

117,625

As at 30 June 2023 there were carried forward trading losses of £619,467 (2022: £826,880)