Tildenet Holdings Limited - Limited company accounts 23.2
Tildenet Holdings Limited - Limited company accounts 23.2
REGISTERED NUMBER: 10738316 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30 September 2023 |
for |
TILDENET HOLDINGS LIMITED |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Contents of the Consolidated Financial Statements |
for the year ended 30 September 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
TILDENET HOLDINGS LIMITED |
Company Information |
for the year ended 30 September 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
11 Laura Place |
Bath |
BA2 4BL |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Group Strategic Report |
for the year ended 30 September 2023 |
The directors present their strategic report of the company and the group for the year ended 30 September 2023. |
This strategic report provides an overview of our business performance over the past year, as well as our future plans and objectives. |
ANNUAL STRATEGIC BUSINESS REVIEW |
Amidst a challenging economic landscape characterised by elevated inflation and interest rates, our organisation faced pressures that impacted disposable incomes and, consequently, our customer base. Despite these adversities, we are proud to report a robust return for the fiscal year, testament to our resilience and strategic agility. |
NAVIGATING ECONOMIC CHALLENGES |
The past year witnessed persistent hikes in utility and raw material costs. Through meticulous management and strategic foresight, we effectively contained these costs. Our proactive measures not only safeguarded our margins but also enabled an increase in sales productivity per employee, enhancing our overall pre-tax return on sales. This achievement underscores the efficacy of our strategic initiatives and our unwavering commitment to operational excellence. |
STRATEGIC INITIATIVES AND MARKET ADAPTATION |
Our strategic roadmap has proven its worth, guiding us through turbulent times. Continuous refinement of our objectives ensures we remain agile, ready to capitalize on emerging markets and opportunities. Investment in our workforce and technological infrastructure has been pivotal, enhancing our service delivery while ensuring efficient stock management. |
MITIGATING RISKS AND EMBRACING OPPORTUNITIES |
The fluctuating currency landscape remains a challenge; however, our forward-looking risk management strategies have effectively minimized potential impacts. As global economic indicators show signs of easing inflation, we are optimistic about our trajectory and ongoing strategic plans, particularly our ambition to expand our market presence internationally. |
GLOBAL CONSIDERATIONS AND ENVIRONMENTAL COMMITMENT |
Current world events, including climate change and geopolitical tensions, notably in Ukraine and Gaza, continue to influence the global economy and, by extension, our operations. We are deeply committed to reducing our carbon footprint and mitigating the effects of global disputes on our logistics and supply chains. |
LOOKING FORWARD |
As we move ahead, our focus remains on leveraging improvements in the economic climate, expanding our market share, and driving sustainable growth. Our dedication to strategic excellence, operational efficiency, and corporate responsibility guides our path forward. |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Group Strategic Report |
for the year ended 30 September 2023 |
RESULTS AND FINANCIAL KEY PERFORMANCE INDICATORS |
The group’s key financial and other performance indicators during the year were |
Unit | 2023 | 2022 |
Sales | £ | 13,281332 | 15,539,516 |
Sales per head | £ | 237 | 222 |
Profit before interest and taxation | £ | 1,433,151 | 1,651,848 |
Return on capital employed | % | 20.0 | 26.0 |
Return on sales before tax | % | 11.1 | 10.6 |
ON BEHALF OF THE BOARD: |
12 April 2024 |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Report of the Directors |
for the year ended 30 September 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 September 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the subsidiaries of the group is the supply of goods to the various business sectors and channels that it operates in. The main principal sectors being the horticultural, construction sport and gardening sector and through E commerce. |
DIVIDENDS |
Interim dividends per share were paid during the year as follows: |
A Ordinary £1 £340,000 |
B Ordinary £1 £40,000 |
C Ordinary £1 £8,027 |
E Ordinary £1 £99,088 |
The total distribution of dividends for the year ended 30 September 2023 will be £487,115 |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Report of the Directors |
for the year ended 30 September 2023 |
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 group'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 group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Tildenet Holdings Limited |
Opinion |
We have audited the financial statements of Tildenet Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 30 September 2023 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Tildenet Holdings Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 group's and the parent 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 group or the parent 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 was as follows: |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity by discussions with Directors and key personnel, and through consideration of our experience of companies in similar sectors. |
We determined that the most significant laws and regulations which have a direct impact on the form and content of the financial statements of the entity are UK GAAP and the Companies Act. |
We determined that the most significant operational laws and regulations for the entity are employment law, health and safety regulations, and regulations around imports and exports. |
Based on the results or our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above, with no significant issues noted. |
We gained an understating of the entity's policy and procedures by discussions with key personnel. We corroborated our understanding by carrying out substantive audit work. |
We assessed the risk of material misstatement in respect of fraud through discussion with Directors, and through our knowledge of the systems and processes in place. |
Based on the results of our risk assessment we designed our audit procedures to identify and to address material misstatements in relation to fraud. We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach. |
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 |
Tildenet Holdings 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 |
Chartered Accountants |
Statutory Auditor |
11 Laura Place |
Bath |
BA2 4BL |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Consolidated |
Statement of Comprehensive |
Income |
for the year ended 30 September 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER | 4 | 13,281,332 | 15,539,516 |
Cost of sales | 6,868,753 | 8,626,794 |
GROSS PROFIT | 6,412,579 | 6,912,722 |
Distribution costs | 1,859,259 | 2,023,614 |
Administrative expenses | 3,120,169 | 3,237,260 |
4,979,428 | 5,260,874 |
OPERATING PROFIT | 6 | 1,433,151 | 1,651,848 |
Interest receivable and similar income | 7 | 41,748 | 16 |
1,474,899 | 1,651,864 |
Interest payable and similar expenses | 8 | 849 | 5,886 |
PROFIT BEFORE TAXATION | 1,474,050 | 1,645,978 |
Tax on profit | 9 | 355,315 | 331,673 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,118,735 |
1,314,305 |
Profit attributable to: |
Owners of the parent | 1,118,735 | 1,314,305 |
Total comprehensive income attributable to: |
Owners of the parent | 1,118,735 | 1,314,305 |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Consolidated Balance Sheet |
30 September 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 332,704 | 344,831 |
Tangible assets | 13 | 476,940 | 515,096 |
Investments | 14 | - | - |
809,644 | 859,927 |
CURRENT ASSETS |
Stocks | 15 | 3,674,189 | 4,533,779 |
Debtors | 16 | 1,542,267 | 1,636,887 |
Cash at bank and in hand | 3,298,023 | 1,620,446 |
8,514,479 | 7,791,112 |
CREDITORS |
Amounts falling due within one year | 17 | 2,155,321 | 2,107,491 |
NET CURRENT ASSETS | 6,359,158 | 5,683,621 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
7,168,802 |
6,543,548 |
CREDITORS |
Amounts falling due after more than one year |
18 |
(1,407 |
) |
(7,036 |
) |
PROVISIONS FOR LIABILITIES | 21 | (103,766 | ) | (104,503 | ) |
NET ASSETS | 7,063,629 | 6,432,009 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 25,006 | 25,006 |
Retained earnings | 23 | 7,038,623 | 6,407,003 |
SHAREHOLDERS' FUNDS | 7,063,629 | 6,432,009 |
The financial statements were approved by the Board of Directors and authorised for issue on 12 April 2024 and were signed on its behalf by: |
A J Downey - Director |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Company Balance Sheet |
30 September 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Debtors | 16 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 21 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,517,588 | 532,375 |
The financial statements were approved by the Board of Directors and authorised for issue on |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Consolidated Statement of Changes in Equity |
for the year ended 30 September 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 October 2021 | 25,006 | 5,500,440 | 5,525,446 |
Changes in equity |
Dividends | - | (407,742 | ) | (407,742 | ) |
Total comprehensive income | - | 1,314,305 | 1,314,305 |
Balance at 30 September 2022 | 25,006 | 6,407,003 | 6,432,009 |
Changes in equity |
Dividends | - | (487,115 | ) | (487,115 | ) |
Total comprehensive income | - | 1,118,735 | 1,118,735 |
Balance at 30 September 2023 | 25,006 | 7,038,623 | 7,063,629 |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Company Statement of Changes in Equity |
for the year ended 30 September 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 October 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 September 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 September 2023 |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Consolidated Cash Flow Statement |
for the year ended 30 September 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,271,893 | 1,203,640 |
Interest paid | - | (1,178 | ) |
Interest element of hire purchase payments paid |
(849 |
) |
(4,708 |
) |
Tax paid | (338,185 | ) | (358,224 | ) |
Net cash from operating activities | 1,932,859 | 839,530 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (176,839 | ) | (209,325 | ) |
Interest received | 41,748 | 16 |
Net cash from investing activities | (135,091 | ) | (209,309 | ) |
Cash flows from financing activities |
Capital repayments in year | (5,629 | ) | (20,899 | ) |
Amount introduced by directors | 13,217 | - |
Amount withdrawn by directors | - | (14,198 | ) |
Equity dividends paid | (127,779 | ) | (485,600 | ) |
Net cash from financing activities | (120,191 | ) | (520,697 | ) |
Increase in cash and cash equivalents | 1,677,577 | 109,524 |
Cash and cash equivalents at beginning of year |
2 |
1,620,446 |
1,510,922 |
Cash and cash equivalents at end of year |
2 |
3,298,023 |
1,620,446 |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Notes to the Consolidated Cash Flow Statement |
for the year ended 30 September 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 1,474,050 | 1,645,978 |
Depreciation charges | 227,122 | 235,344 |
Finance costs | 849 | 5,886 |
Finance income | (41,748 | ) | (16 | ) |
1,660,273 | 1,887,192 |
Decrease/(increase) in stocks | 859,590 | (973,617 | ) |
Decrease in trade and other debtors | 76,884 | 1,161,640 |
Decrease in trade and other creditors | (324,854 | ) | (871,575 | ) |
Cash generated from operations | 2,271,893 | 1,203,640 |
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 September 2023 |
30.9.23 | 1.10.22 |
£ | £ |
Cash and cash equivalents | 3,298,023 | 1,620,446 |
Year ended 30 September 2022 |
30.9.22 | 1.10.21 |
£ | £ |
Cash and cash equivalents | 1,620,446 | 1,510,922 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.10.22 | Cash flow | At 30.9.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,620,446 | 1,677,577 | 3,298,023 |
1,620,446 | 1,677,577 | 3,298,023 |
Debt |
Finance leases | (12,666 | ) | 5,629 | (7,037 | ) |
(12,666 | ) | 5,629 | (7,037 | ) |
Total | 1,607,780 | 1,683,206 | 3,290,986 |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Notes to the Consolidated Financial Statements |
for the year ended 30 September 2023 |
1. | STATUTORY INFORMATION |
Tildenet Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Summary of disclosure exemptions |
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such,advantage has been taken of the following reduced disclosures available under FRS 102: |
a) Disclosure in respect of each class of share capital have not been presented. |
b) No cash flow statement has been presented for the company. |
c) Disclosures in respect of financial instruments have not been presented. |
d) No disclosure has been given for the aggregate remuneration of key management personnel. |
Basis of consolidation |
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings ("the Group") drawn up to 30 September 2023, as if they form a single entity. |
The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. |
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate.Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group. |
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill. They are deconsolidated from the date control ceases. |
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full. |
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements. |
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination. |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Sale of goods |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- the Group has transferred the significant risks and rewards of ownership to the buyer; |
- the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- the amount of revenue can be measured reliably; |
- it is probable that the Group will receive the consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Goodwill |
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated Statement of Comprehensive Income over its useful economic life of 30 years. |
Other intangible assets |
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. |
Tangible fixed assets |
Short leasehold | - |
Long leasehold | - |
Plant and Equipment | - |
Fixtures and fittings | - |
Motor vehicles | - |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss. |
Valuation of investments |
Investments in subsidiaries are measured at cost less accumulated impairment. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan. |
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 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 |
Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured. |
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated. |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2023 |
2. | ACCOUNTING POLICIES - continued |
Leasing |
Rentals paid under operating leases are charged to the profit and loss on a straight line basis over the lease term. |
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset. |
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. |
Pension costs and other post-retirement benefits |
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. |
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds. |
Interest income |
Interest income is recognised in profit or loss using the effective interest method. |
Finance costs |
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
Borrowing costs |
All borrowing costs are recognised in profit or loss in the year in which they are incurred. |
Provisions for liabilities |
Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the Balance |
Sheet. |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In preparing these financial statements the Directors have made judgements as to the valuation of stock and bad debt provisions. No other significant judgements or assumptions have had to be made. |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2023 |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 11,158,396 | 13,605,721 |
Rest of Europe | 457,763 | 501,062 |
Rest of the world | 1,665,173 | 1,432,733 |
13,281,332 | 15,539,516 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,225,608 | 1,410,527 |
Social security costs | 103,244 | 113,295 |
Other pension costs | 43,010 | 56,957 |
1,371,862 | 1,580,779 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Employees |
2023 | 2022 |
£ | £ |
Directors' remuneration | 352,675 | 413,029 |
Directors' pension contributions to money purchase schemes | 18,770 | 23,457 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 150,000 | 150,000 |
Pension contributions to money purchase schemes | 9,607 | 10,440 |
There is no key management compensation other than Directors Emoluments. |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2023 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases | 290,057 | 242,582 |
Depreciation - owned assets | 214,995 | 223,217 |
Goodwill amortisation | 12,127 | 12,127 |
Auditors' remuneration | 16,643 | 15,996 |
Exchange differences | (36,938 | ) | (232,646 | ) |
7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2023 | 2022 |
£ | £ |
Deposit account interest | 39,905 | 16 |
HMRC interest | 1,843 | - |
41,748 | 16 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
HMRC interest | - | 1,178 |
Hire purchase | 849 | 4,708 |
849 | 5,886 |
9. | 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 | 344,412 | 308,270 |
Prior year over/under prov. | 11,640 | - |
Total current tax | 356,052 | 308,270 |
Deferred tax | (737 | ) | 23,403 |
Tax on profit | 355,315 | 331,673 |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2023 |
9. | TAXATION - continued |
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 | 1,474,050 | 1,645,978 |
Profit multiplied by the standard rate of corporation tax in the UK of 22 % (2022 - 19 %) |
324,291 |
312,736 |
Effects of: |
Expenses not deductible for tax purposes | 13,406 | 1,786 |
Capital allowances in excess of depreciation | - | (5,674 | ) |
Depreciation in excess of capital allowances | 10,042 | - |
Adjustments to tax charge in respect of previous periods | 11,961 | - |
Capital revenue adjustments | (3,648 | ) | (578 | ) |
Deferred tax | (737 | ) | 23,403 |
Total tax charge | 355,315 | 331,673 |
10. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
11. | DIVIDENDS |
2023 | 2022 |
£ | £ |
A Ordinary shares of £1 each |
Final | 300,000 | - |
Interim | 40,000 | 340,000 |
B Ordinary shares of £1 each |
Interim | 40,000 | 40,000 |
C Ordinary share of £1 |
Final | 8,027 | - |
Interim | - | 27,742 |
E Ordinary share of £1 |
Final | 51,309 | - |
Interim | 47,779 | - |
487,115 | 407,742 |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2023 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 October 2022 |
and 30 September 2023 | 408,306 |
AMORTISATION |
At 1 October 2022 | 63,475 |
Amortisation for year | 12,127 |
At 30 September 2023 | 75,602 |
NET BOOK VALUE |
At 30 September 2023 | 332,704 |
At 30 September 2022 | 344,831 |
13. | TANGIBLE FIXED ASSETS |
Group |
Short | Long | Plant and |
leasehold | leasehold | Equipment |
£ | £ | £ |
COST |
At 1 October 2022 | 87,914 | 103,180 | 350,592 |
Additions | 27,167 | 50,053 | 15,804 |
Disposals | (449 | ) | - | (9,824 | ) |
Reversal of impairments | - | - | - |
At 30 September 2023 | 114,632 | 153,233 | 356,572 |
DEPRECIATION |
At 1 October 2022 | 30,808 | 25,788 | 244,694 |
Charge for year | 13,896 | 24,575 | 41,650 |
Eliminated on disposal | (449 | ) | - | (9,824 | ) |
Reversal of impairments | - | - | - |
At 30 September 2023 | 44,255 | 50,363 | 276,520 |
NET BOOK VALUE |
At 30 September 2023 | 70,377 | 102,870 | 80,052 |
At 30 September 2022 | 57,106 | 77,392 | 105,898 |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2023 |
13. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 October 2022 | 685,160 | 25,500 | 1,252,346 |
Additions | 83,815 | - | 176,839 |
Disposals | (37,574 | ) | - | (47,847 | ) |
Reversal of impairments | 135,987 | - | 135,987 |
At 30 September 2023 | 867,388 | 25,500 | 1,517,325 |
DEPRECIATION |
At 1 October 2022 | 410,460 | 25,500 | 737,250 |
Charge for year | 134,874 | - | 214,995 |
Eliminated on disposal | (37,574 | ) | - | (47,847 | ) |
Reversal of impairments | 135,987 | - | 135,987 |
At 30 September 2023 | 643,747 | 25,500 | 1,040,385 |
NET BOOK VALUE |
At 30 September 2023 | 223,641 | - | 476,940 |
At 30 September 2022 | 274,700 | - | 515,096 |
Assets with NBV of £11,259 (2022 £14,636) are held under HP / Finance lease. |
Company |
Plant and |
Equipment |
£ |
COST |
At 1 October 2022 |
and 30 September 2023 |
DEPRECIATION |
At 1 October 2022 |
Charge for year |
At 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2023 |
14. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 October 2022 |
and 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
15. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 3,674,189 | 4,533,779 |
All stock items are finished goods. |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 1,270,847 | 1,377,734 |
Amounts owed by group undertakings | - | - |
Other debtors | 94,034 | 59,389 |
Directors' loan accounts | - | 16,683 | - | - |
Tax | - | 1,053 |
Prepayments and accrued income | 177,386 | 182,028 |
1,542,267 | 1,636,887 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Hire purchase contracts (see note 19) | 5,630 | 5,630 |
Trade creditors | 804,634 | 818,670 |
Amounts owed to group undertakings | - | - |
Corporation tax | 174,317 | 157,503 |
Social security and other taxes | 42,557 | 88,628 |
VAT | 270,399 | 290,439 | - | - |
Other creditors | 26,468 | 17,448 |
Directors' current accounts | 296,534 | - | 300,000 | - |
Accruals and deferred income | 534,782 | 729,173 |
2,155,321 | 2,107,491 |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2023 |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 19) | 1,407 | 7,036 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 5,630 | 5,630 |
Between one and five years | 1,407 | 7,036 |
7,037 | 12,666 |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 213,318 | 348,864 |
Between one and five years | 387,344 | 484,430 |
In more than five years | - | 13,337 |
600,662 | 846,631 |
20. | SECURED DEBTS |
Hire purchase liabilities of £7,037 (2022: £12,666) are secured against the assets to which they relate. |
21. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 103,766 | 104,503 | 6,232 | 12,178 |
Group |
Deferred |
tax |
£ |
Balance at 1 October 2022 | 104,503 |
Accelerated capital allowances | (737 | ) |
Balance at 30 September 2023 | 103,766 |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2023 |
21. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Balance at 1 October 2022 |
Accelerated Capital Allowances | (5,946 | ) |
Balance at 30 September 2023 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
A Ordinary | £1 | 25,000 | 25,000 |
B Ordinary | £1 | 2 | 2 |
C Ordinary | £1 | 1 | 2 |
D Ordinary | £1 | 2 | 2 |
E Ordinary | £1 | 1 | - |
25,006 | 25,006 |
The B, C, D and E shares are non voting. In all other respects all classes of shares rank pari passu. |
23. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 October 2022 | 6,407,003 |
Profit for the year | 1,118,735 |
Dividends | (487,115 | ) |
At 30 September 2023 | 7,038,623 |
Company |
Retained |
earnings |
£ |
At 1 October 2022 |
Profit for the year |
Dividends | ( |
) |
At 30 September 2023 |
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
As at the year end the Group was owed £nil (2022; £16,683) by a director. There are no fixed repayment terms and no interest charged. |
TILDENET HOLDINGS LIMITED (REGISTERED NUMBER: 10738316) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2023 |
25. | RELATED PARTY DISCLOSURES |
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. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |