Arden Winch & Co Limited - Limited company accounts 23.2

REGISTERED NUMBER: 01253792 (England and Wales)

Strategic Report, Directors' Report and

Financial Statements for the Year Ended 31 December 2023

for

Arden Winch & Co Limited

Page

Company Information

1

Strategic Report

2

Directors' Report

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

Mr Adam Christopher Banks

Mr Steven Barker

Miss Julie Edwina Cooke

Mr Richard Hastings Wetherill

Mr Nicholas Arden Winch

SECRETARY:

Miss Julie Edwina Cooke

REGISTERED OFFICE:

9 Acres Hill Lane

Sheffield

South Yorkshire

S9 4LR

REGISTERED NUMBER:

01253792 (England and Wales)

INDEPENDENT AUDITORS:

Landin Wilcock & Co

Statutory Auditor

68 Queen Street

Sheffield

South Yorkshire

S1 1WR

BANKERS:

HSBC

37 High Street

Meadowhall Shopping Centre

Sheffield

South Yorkshire

S9 1EN

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

REVIEW OF BUSINESS

The year ending December 2023 was an excellent growth year. The turnover grew by 24% on the previous year to £9.5 million.

The company costs have increased, and this is something we struggle to keep control of. The 10% + increases in the National Living Wage, within the last 5 years, have increased our costs by £175,000 per annum (2020 compared with 2024).

We completed the second embroidery extension in October 2023, and this has now massively improved our customer service and daily capacity.

The introduction of a second solar panel array has also reduced our need for expensive electricity.

I would like to thank all the staff who helped and contributed to a very good growth year.

PRINCIPAL RISKS AND UNCERTAINTIES

The main factors outside our control includes the actions of our competitors and government policy. Our senior management regularly review the competitive threats we face in order to identify the appropriate actions to be taken.

The main factors within our control is how we are organised internally, and the recruitment, retention and training of staff with the appropriate skills.

KEY PERFORMANCE INDICATORS

We rely on the below, together with other financial and non-financial key performance indicators to monitor the performance of the business. All indicators are reported and analysed regularly through the provision of management information and business reviews with senior personnel.

unit

2023

2022

Turnover

£

9,512,659

7,670,128

Turnover growth

%

24

(2)

Gross profit margin

%

30

31

Profit/(loss) before tax

£

541,853

406,075

ON BEHALF OF THE BOARD:

Mr Steven Barker - Director

18 June 2024

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of an industrial merchant.

DIVIDENDS

Interim dividends of £238,695 were distributed and paid during the year ended 31 December 2023.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

Mr Adam Christopher Banks

Mr Steven Barker

Miss Julie Edwina Cooke

Mr Richard Hastings Wetherill

Mr Nicholas Arden Winch

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 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, Landin Wilcock & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Miss Julie Edwina Cooke - Director

18 June 2024

Opinion

We have audited the financial statements of Arden Winch & Co Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, 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 31 December 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 Directors' Report, 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Directors' Report 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 Directors' Report.

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:

- minimal reliance was placed upon the operating effectiveness of internal controls in the design and performance of our substantive procedures;

- discussions were held with management considering known or suspected non-compliance with laws, regulations and fraud;

- journal entries were reviewed for any entries made outside the ordinary reporting process with particular emphasis on those with unusual account combinations, entries crediting revenue and those without specific descriptions;

- management assumptions in their significant accounting estimates were challenged and scrutinised.

There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one from resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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.

Robert Hampstead (Senior Statutory Auditor)

for and on behalf of Landin Wilcock & Co

Statutory Auditor

68 Queen Street

Sheffield

South Yorkshire

S1 1WR

21 June 2024

TURNOVER

3

9,512,659

7,670,128

Cost of sales

(6,636,801

)

(5,289,034

)

GROSS PROFIT

2,875,858

2,381,094

Administrative expenses

(2,394,768

)

(2,037,919

)

481,090

343,175

Other operating income

51,613

63,306

OPERATING PROFIT

5

532,703

406,481

Interest receivable and similar income

11,279

-

543,982

406,481

Interest payable and similar expenses

6

(2,129

)

(406

)

PROFIT BEFORE TAXATION

541,853

406,075

Tax on profit

7

(138,601

)

(81,515

)

PROFIT FOR THE FINANCIAL YEAR

403,252

324,560

PROFIT FOR THE YEAR

403,252

324,560

OTHER COMPREHENSIVE INCOME

Surplus on property revaluation

Income tax relating to other comprehensive income

1,125

1,125

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

1,125

1,125

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

404,377

325,685

FIXED ASSETS

Intangible assets

9

223,190

24,167

Tangible assets

10

1,973,422

1,561,426

Investments

11

1

1

Investment property

12

745,000

745,000

2,941,613

2,330,594

CURRENT ASSETS

Stocks

13

914,725

941,355

Debtors

14

1,401,471

1,384,965

Cash at bank and in hand

1,221,425

1,472,518

3,537,621

3,798,838

CREDITORS

Amounts falling due within one year

15

(1,611,734

)

(1,497,137

)

NET CURRENT ASSETS

1,925,887

2,301,701

TOTAL ASSETS LESS CURRENT LIABILITIES

4,867,500

4,632,295

CREDITORS

Amounts falling due after more than one year

16

(21,437

)

(25,041

)

PROVISIONS FOR LIABILITIES

19

(162,196

)

(89,069

)

NET ASSETS

4,683,867

4,518,185

CAPITAL AND RESERVES

Called up share capital

20

90,415

90,415

Share premium

21

8,243

8,243

Revaluation reserve

21

409,709

410,238

Capital redemption reserve

21

3,510

3,510

Retained earnings

21

4,171,990

4,005,779

SHAREHOLDERS' FUNDS

4,683,867

4,518,185

The financial statements were approved by the Board of Directors and authorised for issue on 18 June 2024 and were signed on its behalf by:

Mr Steven Barker - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 January 2022

90,415

3,918,032

8,243

Changes in equity

Profit for the year

-

324,560

-

Other comprehensive income

-

1,883

-

Total comprehensive income

-

326,443

-

Dividends

-

(238,696

)

-

Total transactions with owners, recognised directly in equity

-

(238,696

)

-

Balance at 31 December 2022

90,415

4,005,779

8,243

Changes in equity

Profit for the year

-

403,252

-

Other comprehensive income

-

1,654

-

Total comprehensive income

-

404,906

-

Dividends

-

(238,695

)

-

Total transactions with owners, recognised directly in equity

-

(238,695

)

-

Balance at 31 December 2023

90,415

4,171,990

8,243

Capital

Revaluation

redemption

Total

reserve

reserve

equity

£

£

£

Balance at 1 January 2022

410,996

3,510

4,431,196

Changes in equity

Profit for the year

-

-

324,560

Other comprehensive income

(758

)

-

1,125

Total comprehensive income

(758

)

-

325,685

Dividends

-

-

(238,696

)

Total transactions with owners, recognised directly in equity

-

-

(238,696

)

Balance at 31 December 2022

410,238

3,510

4,518,185

Changes in equity

Profit for the year

-

-

403,252

Other comprehensive income

(529

)

-

1,125

Total comprehensive income

(529

)

-

404,377

Dividends

-

-

(238,695

)

Total transactions with owners, recognised directly in equity

-

-

(238,695

)

Balance at 31 December 2023

409,709

3,510

4,683,867

Cash flows from operating activities

Cash generated from operations

1

753,285

295,038

Interest paid

(52

)

-

Interest element of hire purchase payments paid

(2,077

)

(406

)

Tax paid

(76,733

)

(111,176

)

Net cash from operating activities

674,423

183,456

Cash flows from investing activities

Purchase of intangible fixed assets

(204,023

)

(25,000

)

Purchase of tangible fixed assets

(493,589

)

(55,221

)

Sale of tangible fixed assets

2,500

3,000

Interest received

11,279

-

Net cash from investing activities

(683,833

)

(77,221

)

Cash flows from financing activities

Capital repayments in year

(2,988

)

(1,939

)

Equity dividends paid

(238,695

)

(238,696

)

Net cash from financing activities

(241,683

)

(240,635

)

Decrease in cash and cash equivalents

(251,093

)

(134,400

)

Cash and cash equivalents at beginning of year

2

1,472,518

1,606,918

Cash and cash equivalents at end of year

2

1,221,425

1,472,518

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

31/12/23

31/12/22

£

£

Profit before taxation

541,853

406,075

Depreciation charges

80,885

53,801

Loss on disposal of fixed assets

3,209

4,032

Finance costs

2,129

406

Finance income

(11,279

)

-

616,797

464,314

Decrease/(increase) in stocks

26,630

(50,785

)

Increase in trade and other debtors

(16,506

)

(269,847

)

Increase in trade and other creditors

126,364

151,356

Cash generated from operations

753,285

295,038

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 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

1,221,425

1,472,518

Year ended 31 December 2022

31/12/22

1/1/22

£

£

Cash and cash equivalents

1,472,518

1,606,918

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/23

Cash flow

At 31/12/23

£

£

£

Net cash

Cash at bank and in hand

1,472,518

(251,093

)

1,221,425

1,472,518

(251,093

)

1,221,425

Debt

Finance leases

(28,029

)

2,988

(25,041

)

(28,029

)

2,988

(25,041

)

Total

1,444,489

(248,105

)

1,196,384

1.	STATUTORY INFORMATION

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

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

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 as modified by the revaluation of certain assets.

Preparation of consolidated financial statements

The financial statements contain information about Arden Winch & Co Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

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.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and evaluated and are based upon historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Stock provisioning

The company is engaged in the sale and distribution of personal protective equipment, and as a result, it is necessary to consider the recoverability of the cost inventory and the associated provisioning required. When calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability.

Impairment of debtors

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

Turnover

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers. Revenue is recognised when the services are rendered, goods are delivered or work is complete.

Revenue from these services are recognised when:

- the company has transferred to a buyer the significant risks and rewards of ownership of the goods and services;

- the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control of the goods and services sold;

- the amount of revenue can be measured reliably;

- it is probable that the economic benefits associated with the transaction will flow to the company;

- the costs to be incurred in respect of the transaction can be measured reliably; and

- the stage of completion of the transaction at the balance sheet date can be measured reliably.

Any amounts received in advance are recorded as accrued liabilities until services are rendered to customers or goods are delivered.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2022, is being amortised evenly over its estimated useful life of five years.

Computer software

No amortisation has been charged in the accounting year, as the assets are not yet in use.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

1% on cost/revaluation

Short leasehold

-

1% on cost/revaluation

Fixtures and fittings

-

33% on cost and 10% on reducing balance

Motor vehicles

-

25% on reducing balance

Tangible fixed assets are initially measured at cost. Subsequently, they are measured at cost less accumulated depreciation and impairment losses.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

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

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.