Hyde Time Limited. t/a West Riding Hyund - Limited company accounts 23.1

REGISTERED NUMBER: 05761181 (England and Wales)

HYDE TIME LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

DIRECTORS:

N Wright

J Wright

B Wright

REGISTERED OFFICE:

North Valley Road Garage

Windsor Street

Colne

Lancashire

BB8 9LJ

REGISTERED NUMBER:

05761181 (England and Wales)

AUDITORS:

DTE Business Advisers Limited

Chartered Accountants

Statutory Auditors

The Exchange

5 Bank Street

Bury

Lancashire

BL9 0DN

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

REVIEW OF BUSINESS

Hyde Time Limited operates motor dealerships from locations in the local area based in, Bolton - Greater Manchester, Colne - Lancashire and Salford - Greater Manchester. It holds Hyundai franchises specialising in new car sales, used car sales and after sales.

The directors are pleased to report a department wide growth with its company performance in 2022 vs the prior year.

The company has continued with a proactive sales strategy for 2022, building on the previous year's approach. To implement this the directors have identified and increased employee resource for productive +55% and sales employees +17%.

In combination with this resource increase the directors put in place an over-performance renumeration strategy for the senior management team. We believe that whilst this approach incurred additional expense, it has been extremely successful in driving performance across the company.

We monitor the following KPI's to assess the overall performance of the company through the financial year.

£'000

2022

2021

Change

Turnover

51,880

38,681

+34%

Gross profit

4,129

3,203

+29%

Operating profit

547

349

+57%

EBITDA

638

423

+51%

Profit before tax

545

349

+57%

Net assets

438

97

+353%

The company would like to recognise the loyalty and dedication of our staff during 2022.

PRINCIPAL RISKS AND UNCERTAINTIES

The company utilises a number of financial tools during its day to day operations, including;

Vehicle stock funding, Cash utilisation, Trade debtors and Trade creditors. The directors understand that the use of these tools bears a potential financial risk to the company which are outlined below.

The directors believe that the following risks may arise: Liquidity risk, interest rate risk and credit risk.

INTEREST RATE RISK

The company utilises vehicle stocking loan facilities to effectively manage and maintain a healthy working capital position. The directors continuously monitor the interest charges and utilisation of these facilities to ensure they are being used most effectively and charges are kept to a minimum.

LIQUIDITY RISK

The directors and senior management team monitors daily stock holding value and position to ensure cash utilisation is managed effectively.

CREDIT RISK

The company operates with many trade debtors and creditors, originating from both our manufacturing partner, Hyundai Motor UK and consumer activities.

The directors and senior management team monitors frequently the level of debtors and creditors derived from these sources by each site location. The company ensures risks are managed by supervising credit offered and actively pursuing outstanding debt.

MANUFACTURER SUPPLY AND AVAILABILITY OF PRODUCTS

The company is reliant on the availability of product's from our manufacturing partner Hyundai Motor UK in the forms of:

- New vehicle stock

- Vehicle parts

- Future product releases

The company has managed product availability effectively during 2022 and continues to do so, restricted supply saw used vehicle prices and margins increase through 2021 for both new and used vehicles, moving through 2022 these increases have slowed and stabilised.

The directors are confident that their manufacturing partner Hyundai Motor UK has new vehicle product releases scheduled for the upcoming financial year that will be both, available and desirable to our targeted consumer market.

FUTURE OUTLOOK AND ECONOMIC RISK

Further to the positive changes already made to the operational and accounts functions, the company will continue to implement process and system improvements in 2023. The directors also understand the risks associated with the current economic climate in regards to inflation and expense creep. A company-wide cost analysis was undertaken prior to 2023, identifying key areas where the company can mitigate cost increases, the directors are confident that it can make the necessary changes to mitigate these rises sufficiently.

The ongoing support from stakeholders, Hyundai Motor UK, Hyundai Capital UK and Metro Bank PLC has to be noted and appreciated.

The success of the company is subject to the economic conditions within the UK. A reduction in consumer spending or confidence has the potential to impact company performance. The directors continually monitor the economic landscape to ensure necessary steps are taken to mitigate against this risk.

The company continues to actively seek opportunities to expand. The directors continue to monitor the impact of restricted supply on our new, used and after sales departments.

ON BEHALF OF THE BOARD:

B Wright - Director

12 May 2023

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a motor vehicle retailer and associated services.

DIVIDENDS

An interim dividend of £0.83804 per share on the Ordinary £1 shares was paid on 31 December 2022. The directors recommend that no final dividend be paid on these shares.

No interim dividend was paid on the Redeemable preference £1 shares. The directors recommend that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 31 December 2022 will be £ 83,804 .

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

N Wright

J Wright

B Wright

DISCLOSURE IN THE STRATEGIC REPORT

Identification of the information for which the company has chosen, in accordance with s414C(11) of the Companies Act, to set out in the company's strategic report which would otherwise be required by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008' to be contained in the directors' report.

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

DTE Business Advisers Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting.

ON BEHALF OF THE BOARD:

B Wright - Director

12 May 2023

Opinion

We have audited the financial statements of Hyde Time Limited (the 'company') for the year ended 31 December 2022 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 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 four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our planning process:

-

We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.

-

We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, Health & Safety at Work 1974, Employment Act 2008 and General Data Protection Regulations (GDPR).

-

We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

-

Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

-

Identifying and testing journal entries, in particular those that were significant and unusual.

-

Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

-

Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to assessing of accruals level at the year end, estimated useful life of the assets, manufacturer bonus provisions and consignment inventories.

-

Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entities ability to continue in operation.

-

Testing key revenue lines, in particular cut-off and walk-through, for evidence of management bias.

-

Reviewing and testing control procedures.

-

Performing a physical verification of key assets.

-

Obtaining third-party confirmation of material bank and loan balances.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

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.

Richard Taylor (Senior Statutory Auditor)

for and on behalf of DTE Business Advisers Limited

Chartered Accountants

Statutory Auditors

The Exchange

5 Bank Street

Bury

Lancashire

BL9 0DN

17 May 2023

REVENUE

3

51,880,077

38,681,469

Cost of sales

(47,750,776

)

(35,478,683

)

GROSS PROFIT

4,129,301

3,202,786

Administrative expenses

(3,585,022

)

(2,907,659

)

544,279

295,127

Other operating income

4

2,424

53,373

OPERATING PROFIT

6

546,703

348,500

Interest payable and similar expenses

7

(1,238

)

-

PROFIT BEFORE TAXATION

545,465

348,500

Tax on profit

8

(120,745

)

(101,833

)

PROFIT FOR THE FINANCIAL YEAR

424,720

246,667

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

424,720

246,667

FIXED ASSETS

Intangible assets

10

-

-

Property, plant and equipment

11

373,412

404,305

373,412

404,305

CURRENT ASSETS

Inventories

12

5,329,718

3,925,922

Debtors

13

509,723

427,799

Cash at bank and in hand

1,174,357

963,906

7,013,798

5,317,627

CREDITORS

Amounts falling due within one year

14

(6,864,683

)

(5,563,876

)

NET CURRENT ASSETS/(LIABILITIES)

149,115

(246,249

)

TOTAL ASSETS LESS CURRENT LIABILITIES

522,527

158,056

CREDITORS

Amounts falling due after more than one year

15

(29,779

)

(39,564

)

PROVISIONS FOR LIABILITIES

19

(55,173

)

(21,833

)

NET ASSETS

437,575

96,659

CAPITAL AND RESERVES

Called up share capital

20

300,000

300,000

Retained earnings

137,575

(203,341

)

SHAREHOLDERS' FUNDS

437,575

96,659

The financial statements were approved by the Board of Directors and authorised for issue on 12 May 2023 and were signed on its behalf by:

B Wright - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2021

300,000

(450,008

)

(150,008

)

Changes in equity

Total comprehensive income

-

246,667

246,667

Balance at 31 December 2021

300,000

(203,341

)

96,659

Changes in equity

Dividends

-

(83,804

)

(83,804

)

Total comprehensive income

-

424,720

424,720

Balance at 31 December 2022

300,000

137,575

437,575

Cash flows from operating activities

Cash generated from operations

1

364,520

643,582

Interest paid

(1,238

)

-

Net cash from operating activities

363,282

643,582

Cash flows from investing activities

Purchase of property plant and equipment

(59,960

)

(15,844

)

Net cash from investing activities

(59,960

)

(15,844

)

Cash flows from financing activities

Loan repayments in year

(9,067

)

(1,154

)

Equity dividends paid

(83,804

)

-

Net cash from financing activities

(92,871

)

(1,154

)

Increase in cash and cash equivalents

210,451

626,584

Cash and cash equivalents at beginning of year

2

963,906

337,322

Cash and cash equivalents at end of year

2

1,174,357

963,906

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

2022

2021

£

£

Profit before taxation

545,465

348,500

Depreciation charges

90,853

67,611

Amortisation of intangible assets

-

6,666

Finance costs

1,238

-

637,556

422,777

(Increase)/decrease in inventories

(1,403,796

)

1,073,560

Increase in trade and other debtors

(81,924

)

(172,620

)

Increase/(decrease) in trade and other creditors

1,212,684

(680,135

)

Cash generated from operations

364,520

643,582

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2022

31.12.22

1.1.22

£

£

Cash and cash equivalents

1,174,357

963,906

Year ended 31 December 2021

31.12.21

1.1.21

£

£

Cash and cash equivalents

963,906

337,322

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.22

Cash flow

At 31.12.22

£

£

£

Net cash

Cash at bank and in hand

963,906

210,451

1,174,357

963,906

210,451

1,174,357

Debt

Debts falling due within 1 year

(9,282

)

(718

)

(10,000

)

Debts falling due after 1 year

(39,564

)

9,785

(29,779

)

(48,846

)

9,067

(39,779

)

Total

915,060

219,518

1,134,578

1.	STATUTORY INFORMATION

Hyde Time Limited is a company registered in England and Wales. Its registered number is 05761181 and its registered office address is North Valley Road Garage, Windsor Street, Colne, Lancashire, BB8 9LJ.

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.

Going concern

The company has reported a net profit before tax of £545,465 (2021: £348,500) and has net assets at the year end of £437,575 (2021: £96,659). The company holds cash reserves of £1,174,357 (2021: £963,906) at the year end and is well placed to continue to its operations. Post year end the company continues to grow and increased profits have been reported. As such the going concern basis is considered appropriate by the directors.

Critical accounting judgements and estimates

In the application of the company's accounting policies, the directors are required to make estimates and judgements. The estimates are based on historical experience and other relevant factors. Actual results may differ from these estimates.

The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Estimating the useful economic life of an asset and the anticipated residual value are considered the key judgement in calculating an appropriate depreciation charge.

In categorising leases as finance or operating leases, the directors make judgements as to whether significant risks and rewards of ownership have transferred to the company as lessee.

Making judgement based on historical experience on the level of provision required for bad debts. Further information received after the statement of financial position date may impact on the level of provision required.

Making judgement based on historical experience on the level of provision required for impairment of inventories. Further information received after the statement of financial position date may impact on the level of provision required.

Making judgement based on historical experience on the level of provision required for warranties provided to customers.

Consignment inventory has been included within the company's statement of financial position on the grounds that the company considerably bears the risks and rewards of ownership attached to these vehicles. As such, the consignment inventory is considered under control of the company.

The company receives income in the form of various incentives which are determined by the company's brand partners. The amount receivable is generally based on achieving specific objectives such as a specified sales volume, as well as other objectives including maintaining brand partner standards which may included but are not limited to, retail centre image and design requirements, customer satisfaction survey results and training standards. Objectives are generally set and measured on either a quarterly or annual basis.

Where incentives are based on a specific sales volume or number of registrations, the related income is recognised as a reduction in cost of sales when it is reasonably certain that the income has been earned. This is generally the later of the date the related vehicles are sold or registered or when it is reasonably certain that the related target will be met. Where incentives are linked to retail centre image and design requirements, customer satisfaction survey results or training standards, they are recognised as a reduction in cost of sales when it is reasonably certain that the incentive will be received for the relevant period.

The company may also receive contributions towards advertising and promotional expenditure. Where such contributions are received they are recognised as a reduction in the related expenditure in the period to which they relate.

Revenue

Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue on vehicle sales is recognised upon delivery to the customer. Revenue on vehicle repairs and servicing is recognised once the service has been performed.

Revenue also comprises commissions receivable for arranging vehicle financing and related insurance products. Commissions are based on agreed rates and income is recognised at the time of approval of the vehicle finance provider.

Goodwill

Goodwill is initially measured at cost. After initial recognition, goodwill is measured at cost less any accumulated amortisation and any accumulated impairment losses.

Property, plant and equipment

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

Improvements to property

-

over the period of the lease

Plant and machinery

-

10% -25% straight line

The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises.

Government grants

Grants are accounted for under the accruals model as permitted by FRS 102.

During the prior year the company benefitted from the Government Coronavirus Job Retention Scheme ('Furlough'). Furlough income has been recognised in "other income" in the same period as the related wage costs.

Inventories

Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving items. Net realisable value is estimated selling price less costs to complete and sell.

Cost includes any expenditure incurred in bringing the inventory to its present location and condition. The cost comprises of actual purchase price.

Consignment inventories are included in the statement of financial position where in substance they are assets of the company and to the extent that the company has access to the benefits of holding the inventory and exposure to the risks of ownership as if they were owned outright.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement.

Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 statement of financial position date.

Deferred tax

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

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

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

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.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

Dividends

Equity dividends are recognised when they become legally payable and are no longer at the discretion of the company.

3.

REVENUE

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

An analysis of revenue by class of business is given below:

2022

2021

£

£

Sale of goods

47,212,618

34,856,154

Rendering of services

4,667,459

3,825,315

51,880,077

38,681,469

4.	OTHER OPERATING INCOME

2022

2021

£

£

Sundry receipts

2,424

9,933

Government grants

-

43,440

2,424

53,373

5.	EMPLOYEES AND DIRECTORS

2022

2021

£

£

Wages and salaries

2,584,739

2,116,014

Social security costs

301,478

246,909

Other pension costs

49,821

40,180

2,936,038

2,403,103

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

2022

2021

Administrative

42

42

Selling

14

12

Productive

17

11

73

65