R & W Scott Ltd - Limited company accounts 20.1

REGISTERED NUMBER: 05072615 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2022

for

R & W SCOTT LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

S J Currie

J C Easton

M J Hewitt

REGISTERED OFFICE:

Aberdein Considine

30 Cloth Market

Newcastle Upon Tyne

NE1 1EE

REGISTERED NUMBER:

05072615 (England and Wales)

AUDITORS:

Sharles Audit Limited

Statutory Auditors

29 Brandon Street

Hamilton

ML3 6DA

The directors present their strategic report for the year ended 31 March 2022.

REVIEW OF BUSINESS

R&W Scott manufactures and sells chocolate coatings, confectionary fillings, specialist soft icings, sauces, jams and dry powder blends for the industrial, retail, wholesale and foodservice markets.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors have outlined their perception on particular risks and uncertainties facing the company below. These risks and uncertainties could cause the actual results to vary from those experienced previously or described in forward looking statements within the annual report.

a) Key Customers

The business has a number of key customers, some of whom operate on contracts which are subject to annual renewals. As a consequence, the retention of particular customers may change on a year to year basis.

b) Raw Materials

Raw materials used by the business are subject to price fluctuations. Typically these items are purchased on forward contracts, providing cover for some months ahead generally and in particular to lock in commitments with sales contracts on a "back to back" basis.

C) Food Safety

As a reputable food trader we enforce our technical policies and procedures in relation to the production and storage of our products. The business recognises the importance and currently holds an A+ grade unannounced BRC accreditation.

d) Health & Safety

The business could be adversely impacted if it failed to manage the safety of its facility effectively.

The directors believe that the safety of the employees, contractors and suppliers is fundamentally important. A business compliance program is in place ensuring that all legal obligations are adhered to. Regular third party auditing takes place to maintain a continuous improvement in standards.

e) Changing Consumer Trends

The business could be impacted by changing consumer trends, with potential risk areas including concerns over obesity and healthier eating. The business's proactive development and technical teams are well positioned to help mitigate these risks.

RESULTS

R&W Scott performed well despite the difficult market conditions and challenges caused by covid-19 towards the start of the financial year.

During the year to April 2022 the business entered a period of post covid-19 recovery which saw foodservice and wholesale revenues return to more normalised levels.

The business ended the year with it's highest historical turnover figure as sales increased 24% year on year. This was supported by existing growth, volume increases and new business elements which had be affected badly during the previous year.

The increase in revenue was partially offset by the widely publicised rise in input prices, predominantly in raw materials, heat, light & power, and distribution. The business is a commodity driven business which has seen unprecedented increases in fats, oils and dairy. There have also been significant increases in gas prices, and disruptions and delays caused by Brexit which added complexities to operations.

Despite these challenges, the business has managed to mitigate the impact of these external factors, minimising, the impact on margin, customer service and quality. We remained profitable, competitive and maintained service levels to our long standing customers whist being flexible enough to support new business growth.

The R&W Scott business continued to drive efficiencies in overhead control, with a reduction in overhead per tonne total overheads for a fifth year in a row. This was supported by the Government Furlough Scheme during the period of reduced sales in H1, but at a significantly reduced level from the pervious year. Overall, the business has been able to vastly improve it's short-term debt position, whilst enforcing it's standing as a sustainable and profitable business.

FUTURE DEVELOPMENTS

This business will continue to develop a range of new products based on both customer requests and market trends. These include but are not limited to more bespoke added value confectionary fillings and speciality jam recipes as well as broadening our no added sugar protein enriched variants of existing products.

This business is expected to continue to benefit from strong, long standing customer relationships, whilst retaining the support of key suppliers. It expects to see its cash position increase and net debt reduce, continuing to improve the long-term profitability/sustainability of the business.

KEY PERFORMANCE INDICATORS

All key performance indicators both financial and non-financial are covered in the financial accounts. The main items being Turnover £14,452,505 (2021: £11,621,642), Gross Profit 25.16% (2021:27.7%) and Profit before tax £20,706 (2021: Profit of £91,015).

EMPLOYEE INVOLVEMENT

The company is committed to involve all employees in the performance and development of the company. Employees are encouraged to discuss with management matters of interest to the employee and subjects affecting day to day operations of the company.

It is the company's policy to give full consideration to suitable applications for employment by disabled persons.

Disabled employees are eligible to participate in all career development opportunities available to staff. Opportunities also exist for employees of the company who became disabled to continue in employment or to be trained for other positions in the company.

ON BEHALF OF THE BOARD:

M J Hewitt - Director

15 August 2022

The directors present their report with the financial statements of the company for the year ended 31 March 2022.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the manufacture amd sale of chocolate coatings, specialist soft icings, sauces, jams and dry powder blends for the industrial, retail, wholesale and foodservice markets.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2022.

FUTURE DEVELOPMENTS

The Directors have considered the impact that Covid-19 pandemic could have on the ongoing trade of the company.

This includes the potential impact of reduced levels of turnover for a period of time and the availability of government assistance to business during this difficult period. The directors expect the company to experience only a short-term reduction in turnover while lock down measures are in place, but with cumulative reserves and the availability of government assistance they are confident that the company will continue operating as a going concern.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2021 to the date of this report.

S J Currie

J C Easton

M J Hewitt

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Sharles Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M J Hewitt - Director

15 August 2022

Opinion

We have audited the financial statements of R & W Scott Ltd (the 'company') for the year ended 31 March 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2022 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 five, 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:

The aims of our audit are to identify and assess the risks of material misstatement of the financial statements as a result of fraud or error, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement as a result of fraud or error and to respond appropriately to those risks. As a result of the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (UK).

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures include the following:

-

We obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate. We determined that the following laws and regulations were most significant: the Companies Act 2006 and UK corporate tax laws.

-

We obtained an understanding of how the company complies with those legal and regulatory frameworks by making inquiries of management. We undertook a review of legal fees for any evidence of non-compliance.

-

We assessed the susceptibility of the company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the audit team included:

-

identifying and documenting the controls management has in place to prevent and detect fraud and error;

-

understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;

-

challenging assumptions and judgements made by management in its significant accounting estimates;

-

identifying and testing journal entries, in particular any journal entries posted for large or unusual amounts;

-

assessing the extent of compliance with relevant laws and regulations; and

-

sample testing of transactions and balances.

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 A Pollock BA CA (Senior Statutory Auditor)

for and on behalf of Sharles Audit Limited

Statutory Auditors

29 Brandon Street

Hamilton

ML3 6DA

15 August 2022

TURNOVER

14,452,505

11,621,642

Cost of sales

10,815,993

8,403,128

GROSS PROFIT

3,636,512

3,218,514

Administrative expenses

3,623,321

3,710,909

13,191

(492,395

)

Other operating income

99,818

702,776

OPERATING PROFIT

5

113,009

210,381

Interest payable and similar expenses

6

92,303

119,366

PROFIT BEFORE TAXATION

20,706

91,015

Tax on profit

7

(55,572

)

-

PROFIT FOR THE FINANCIAL YEAR

76,278

91,015

PROFIT FOR THE YEAR

76,278

91,015

OTHER COMPREHENSIVE INCOME

Fair value adjustment

Capital contribution

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

76,278

91,015

FIXED ASSETS

Tangible assets

8

3,278,928

3,649,019

CURRENT ASSETS

Stocks

9

1,906,957

1,406,807

Debtors

10

6,184,878

5,403,769

Cash at bank and in hand

7,847

401,759

8,099,682

7,212,335

CREDITORS

Amounts falling due within one year

11

3,777,406

2,609,169

NET CURRENT ASSETS

4,322,276

4,603,166

TOTAL ASSETS LESS CURRENT LIABILITIES

7,601,204

8,252,185

CREDITORS

Amounts falling due after more than one year

12

361,317

1,088,576

NET ASSETS

7,239,887

7,163,609

CAPITAL AND RESERVES

Called up share capital

16

5,000,000

5,000,000

Retained earnings

17

2,239,887

2,163,609

SHAREHOLDERS' FUNDS

7,239,887

7,163,609

The financial statements were approved by the Board of Directors and authorised for issue on 15 August 2022 and were signed on its behalf by:

M J Hewitt - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2020

5,000,000

2,072,594

7,072,594

Changes in equity

Total comprehensive income

-

91,015

91,015

Balance at 31 March 2021

5,000,000

2,163,609

7,163,609

Changes in equity

Total comprehensive income

-

76,278

76,278

Balance at 31 March 2022

5,000,000

2,239,887

7,239,887

1.	STATUTORY INFORMATION

R & W Scott Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. There were no material departures from the standard.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Also, as explained in the directors report, the company's ongoing trade is facing an impact from the Covid-19 pandemic. It is expected that the impact will be only be short-term, but this cannot be guaranteed. As a result of the potential fall in turnover the directors have taken steps to reduce costs in the short term and intend to make full use of any government assistance that is available as and when required to ensure the company can continue trading as a going concern

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

•

the requirement of paragraph 33.7.

Significant judgements and estimates

The company makes judgements, estimates and assumptions that affect the application of polices and the carrying values of assets and liabilities, income and expenses. The resulting accounting estimates calculated using these judgements will, by definition, seldom equal the related actual results but are based on the experience of the directors and the expectations of future events. The estimates are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is reviewed.

Key judgement's and sources of estimation uncertainty are;

- The recovery of trade receivables and provision for bad debt. Based on the principle that any debtors overdue by more than 120 days will not be recoverable and should be provided for in full.

- The provision for redundant and non re-workable stock. This is costed on the basis of labour and packaging input costs for re-workable stock and full input cost for stock recognised as redundant.

Turnover

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

Turnover is measured at the fair value from the manufacture and and sale of chocolate coatings, specialist soft icings, sauces, jams and dry powder blends for the industrial, retail wholesale and foodservice markets.

Turnover therefore represents the sale of these goods and services, net of discounts and excluding value added tax, and is recognised at the point that these goods and services are supplied.

Tangible fixed assets

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

Freehold property

-

Straight line over 40 - 50 years

Plant and machinery

-

Straight line over 2 - 13 years

Computer equipment

-

Straight line over 4 years

At each balance sheet date, the company reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Expenditure of £500 or more on individual tangible fixed assets is capitalised at cost. Expenditure on assets below this threshold is charged directly to the income account in the period it is incurred.

Stocks

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

At each balance sheet date, stocks are assessed for impairment. If stocks are impaired the carrying value is reduced to its selling price less costs to sell. The impairment loss is recognised immediately in the profit and loss account.

Financial instruments

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts.

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Research and development

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

Invoice discounting policy

During the year R & W Scott had an invoice discounting facility with Bibby Financial Services secured against trade debtors on a revolving basis with a three month notice period. The facility is secured against the trade debtors of the company with an interest rate of 3.5% above base rate.

Trade debtors remained the assets of the business and were shown at the total amount collectable. Liabilities under this agreement were shown under borrowings.

Significant judgements and estimates

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Basic financial statements

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts.

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

4.	EMPLOYEES AND DIRECTORS

2022

2021

£

£

Wages and salaries

1,693,299

1,809,594

Social security costs

192,851

192,450

Other pension costs

160,766

93,767

2,046,916

2,095,811

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

2022

2021

Directors and administration

20

21

Selling and distribution

12

14

Production

48

49

80

84

2022

2021

£

£

Directors' remuneration

375,714

387,172

Information regarding the highest paid director is as follows:

2022

2021

£

£

Emoluments etc

138,668

148,819

5.	OPERATING PROFIT

The operating profit is stated after charging:

2022

2021

£

£

Other operating leases

88,250

70,146

Depreciation - owned assets

514,433

514,253

Loss on disposal of fixed assets

4,589

-

Auditors' remuneration

13,500

13,500

Foreign exchange differences

1,550

32,961

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2022

2021

£

£

Other interest

92,303

119,366

7.

TAXATION

Analysis of the tax credit

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

2022

2021

£

£

Current tax:

UK corporation tax

(55,572

)

-

Tax on profit

(55,572

)

-

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 March 2022.

2021

Gross

Tax

Net

£

£

£

Fair value adjustment

Capital contribution

-

-

-

At 31 March 2022 there is an unprovided deferred tax asset of £220,000. This asset relates to tax losses and has not been recognised as there is insufficient evidence those losses will be utilised in the foreseeable future.

8.	TANGIBLE FIXED ASSETS

Freehold

Plant and

Computer

property

machinery

equipment

Totals

£

£

£

£

COST OR VALUATION

At 1 April 2021

900,000

7,369,966

107,677

8,377,643

Additions

-

161,892

570

162,462

Disposals

-

(23,350

)

-

(23,350

)

At 31 March 2022

900,000

7,508,508

108,247

8,516,755

DEPRECIATION

At 1 April 2021

42,215

4,635,394

51,015

4,728,624

Charge for year

18,000

479,293

17,140

514,433

Eliminated on disposal

-

(5,230

)

-

(5,230

)

At 31 March 2022

60,215

5,109,457

68,155

5,237,827

NET BOOK VALUE

At 31 March 2022

839,785

2,399,051

40,092

3,278,928

At 31 March 2021

857,785

2,734,572

56,662

3,649,019

Cost or valuation at 31 March 2022 is represented by:

Freehold

Plant and

Computer

property

machinery

equipment

Totals

£

£

£

£

Valuation in 2020

(2,044,283

)

-

-

(2,044,283

)

Cost

2,944,283

7,508,508

108,247

10,561,038

900,000

7,508,508

108,247

8,516,755

If Freehold Property had not been revalued it would have been included at the following historical cost:

2022

2021

£

£

Cost

2,944,283

2,944,283

Freehold Property was valued on an open market value basis on 23 August 2019 by Shepherd Chartered Surveyors .

9.

STOCKS

2022

2021

£

£

Stocks

1,906,957

1,406,807

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

2,236,742

1,530,635

Amounts owed by group undertakings

3,787,508

3,731,808

Other debtors

73,981

67,236

Prepayments

86,647

74,090

6,184,878

5,403,769

Trade debtors subject to the invoice discounting facility as at 31st March 2022 £2,238,269 (2021 £1,240,661).

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts (see note 13)

41,550

41,550

Other loans (see note 13)

40,000

14,000

Hire purchase contracts and finance leases (see note 14)

275,000

275,500

Trade creditors

1,411,775

561,555

Social security and other taxes

69,214

67,855

Other creditors

33,313

267,574

Invoice discounting facility

1,773,800

1,240,661

Accrued expenses

132,754

140,474

3,777,406

2,609,169